Summary:
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US indices remain near recent highs
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US100 rises to new weekly high
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Tesla in focus after Musk tweet
US indices remain fairly well supported with the US500 trading around 2860 and the US100 just moving to its highest level of the week in the last hour. There’s not been much by the way of major market moving news today, and as such the benchmarks have seen fairly subdued price action. Bulls will remain hopeful that the all-time high of 2880 is within imminent reach and in the absence of any reversal signs the markets look poised to continue to edge higher.
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The US500 remains not far from its record peak, although today's trade has seen it fail to extend above Tuesday's high. Source: xStation
One stock in particular that is grabbing the limelight in the past 24 hours is Tesla, with the electronic car manufacturer surging higher on a dual boost yesterday. The market opened strongly to the upside after reports that the Saudi Arabia sovereign wealth fund had amassed a $2B position in the stock. The stake is believed to represent between 3 and 5 percent of the market cap of the stock, but what is perhaps seen as most positive from an investor standpoint is that the wealth fund has very deep pockets and as such could well add to its stake going forward.
Tesla shares received a dual boost yesterday with the stock first rising on news that the Saudi wealth fund has amassed a stake in the firm before a tweet from CEO Musk sent the market surging higher. Source: xStation
While the Saudi news saw a strong move higher in the share price after the open, it was a tweet from Tesla CEO that sparked a media frenzy, with suggestions that Elon Musk was willing to take the company private with investors willing to pay 420 a share, seeing trade halted before another flurry of buying activity. The market stopped just short of its record high at 390 per share, and today’s trade remains inside Tuesday’s large candle at the time of writing.
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