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US indices shrug off Turkish concerns
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US500, US100 and US30 all moving higher
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Tesla in focus as Musk outlines privatisation view
The start of the US cash session has seen a bright start for stock indices, with the markets seemingly not too concerned despite the escalating situation in Turkey. The US500 dropped lower overnight during the Asian session falling back near its lowest level of the month at 2820, but there has been a pretty solid bounce since then. The low was made around 5AM but since then there’s been a 20 handle bounce and in doing so, the market is now higher on the day and above where it ended on Friday.
The US500 has shown a fairly strong bounce from the lows around 2820 and has moved back up to the 50% fib of the move lower around 2842. Source: xStation
Looking at individual stocks, Tesla is attracting a lot of attention of late with a series of tweets from CEO Elon Musk last weeks causing the stock the surge higher last week. The messages on social media strongly hinted that Musk was close to taking the company private for a price of around $420. The news came not long after reports that the Saudi sovereign wealth fund had acquired a significant stake in Tesla, but despite these dual positives the market saw these gains pared back before the end of the week.
Tesla has experienced some large moves in recent trade, with claims from CEO Musk that the firm may be taken private. Source: xStation
Today has seen Mush publish a blog post, providing more details on his claims regarding taking the firm private. Key quotes from the post are as follows:
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Saudi Arabia fund approached me multiple times
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I’ve had several meetings on going private
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No question Saudi deal could be closed
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It was just a matter of getting the process moving
While the comments don’t represent definitive proof as to whether the company will ultimately go public, they do provide a little more colour on last week’s claims. It is worth pointing out that the stock currently trades in the mid 350s so should a deal go through at around 420 then it would represent a fairly sizable premium in the region of 20%.
