Marketbites: Tesla Finishes Best Week in a Decade
MARKET PERFORMANCE:
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Portfolio Manager Commentary:
Stocks rose Friday and capped off a winning week fueled by better-than-expected economic growth and a pop in Tesla shares. All the major averages posted a positive week and are on pace for a month of gains. The tech-heavy Nasdaq index rose 4.03% this week to close out its fourth straight week of gains. It’s on pace for its best monthly performance since July.
Earnings season pressed on, with strong guidance boosting American Express shares by 10.5% despite a top-and bottom-line miss. Some chip stocks rose even as Intel slumped more than 6% on a dismal earnings report that missed expectations. Tesla rose 11% Friday, and more than 33% for the week after reporting record revenue. It marked the electric vehicle stock’s best weekly performance since May 2013.
Looking to next week, a better-than-expected fourth-quarter gross domestic product report Thursday helped stoke hopes that the Fed may actually manage a soft landing.
Chart of the Day:
Tesla options trading has surged recently: Nearly three million contracts now change hands on an average day, according to Cboe Global Markets data. That is up from 1.5 million a year ago and more than any other stock. Only wagers on the SPDR S&P 500 ETF outpace those on Tesla. Tesla now accounts for roughly 7% of all options trading on an average day, based on Cboe and OCC data. On Jan. 6, the busiest day on record, more than 5.2 million contracts traded, nearly 10% of all options.
Source: WSJ
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