Marketbites: Stocks Start October With a Bang
Portfolio Manager Commentary:
Stocks started the 4th quarter with a strong rally, as Treasury yields eased levels not seen in about a decade. The S&P rose 2.59%, the Nasdaq climbed 2.27%, and the Dow finished the day up 2.66%. Monday marks the best trading day for the S&P and Dow since July 27.
According to Sam Stovall, CFRA chief investment strategist, the rally Monday is unsurprising considering how oversold the markets have been. “Because the S&P was down more than 9% in September... because the ISM was weaker than expected – ditto for construction spending – people are now surmising, ‘Hey, maybe the Fed won’t be as aggressive,’” he told CNBC.
Shares of Credit Suisse fell to start the day before ending the day up 2.30% along with the broad market rally. Still, there are many concerns surrounding the financial health of the company. The cost of insuring Credit Suisse against default, as measured by credit-default swaps, has been continuing to rise.
Chart of the Day:
Tesla reported on Sunday that they delivered a record 343,830 vehicles in the three-month period ended in September. This is up from 255,000 in the 2nd quarter which was dented due to a temporary shutdown of its factory in China. It is also up 42% from last year's third quarter when it delivered 241,000 vehicles. Despite the record-breaking 343,830 vehicles delivered this past quarter, it still missed analysts' estimates of 364,660. Tesla ($TSLA) stock was down 8.61% on Monday following the news.