Asia Pacific stocks were mostly up on Wednesday morning, after U.S. shares set a fresh record after U.S. stimulus hopes overrode concerns about ever-rising COVID-19 cases globally.
The number of global COVID-19 cases passed the 68.1 million mark, with the number of U.S. cases passing the 15.1 million mark, as of Dec. 9, according to Johns Hopkins University data.
China’s #Shanghai Composite edged down 0.12% by 11:06 PM ET (3:06 AM GMT) while the #Shenzhen Component was down 0.55%. Data released earlier in the day showed that November’s consumer price index (CPI), came in below expectations, contracting 0.6% month on month and 0.5% year on year. This was the first decline in Chinese consumer prices seen since 2009.
The Producer Product Index (PPI) contracted 1.5% year-on-year.
Hong Kong’s #Hang Seng Index rose 1.21%. A new law will enable authorities to lock down parts of the city hit by COVID-19 for up to seven days. Restriction measures in the city have also been tightened further, with restaurants to stop dine-in services from 6pm onwards and gyms as well as beauty parlours ordered closed from Thursday as 100 new daily COVID-19 cases were recorded on Tuesday.
Japan’s #Nikkei 225 gained 1.09% and South Korea’s #KOSPI jumped 1.25%
In Australia, the #S&P/ASX 200 gained 0.66%. December's Westpac Consumer, released earlier in the day, saw its highest growth in a decade as it jumped to 4.1% against November’s 2.5% jump.
The number of global COVID-19 cases passed the 68.1 million mark, with the number of U.S. cases passing the 15.1 million mark, as of Dec. 9, according to Johns Hopkins University data.
China’s #Shanghai Composite edged down 0.12% by 11:06 PM ET (3:06 AM GMT) while the #Shenzhen Component was down 0.55%. Data released earlier in the day showed that November’s consumer price index (CPI), came in below expectations, contracting 0.6% month on month and 0.5% year on year. This was the first decline in Chinese consumer prices seen since 2009.
The Producer Product Index (PPI) contracted 1.5% year-on-year.
Hong Kong’s #Hang Seng Index rose 1.21%. A new law will enable authorities to lock down parts of the city hit by COVID-19 for up to seven days. Restriction measures in the city have also been tightened further, with restaurants to stop dine-in services from 6pm onwards and gyms as well as beauty parlours ordered closed from Thursday as 100 new daily COVID-19 cases were recorded on Tuesday.
Japan’s #Nikkei 225 gained 1.09% and South Korea’s #KOSPI jumped 1.25%
In Australia, the #S&P/ASX 200 gained 0.66%. December's Westpac Consumer, released earlier in the day, saw its highest growth in a decade as it jumped to 4.1% against November’s 2.5% jump.
MARKET OUTLOOK
#Tesla heads to the S&P after a meteoric rise and some investors want more
Shares of the electric vehicle maker are up nearly 700% over the last year, a meteoric rise that has punished short-sellers and turned it into the world's most highly-valued automaker.
The company's formal entry into the S&P 500 on Monday is expected to generate unprecedented activity near the close of trade on Friday as index-tracking funds load up on shares so their portfolios correctly reflect the index.
Still, Wall Street is divided over whether Tesla's days of heady gains are numbered.
Overall, Wall Street analysts have long been skeptical of Tesla. The 35 analysts tracked by Refinitiv have an average price target of $396.30 per share, which would represent a 36% decline from its current price. Yet in a sign of how split Wall Street is on the stock, target prices range from a high of $774 per share by Elazar Advisors to a low of $40 by GLJ Research.
Tesla closed Thursday at $655.90.
Some long-term investors say that they still expect to see #Tesla post-above-average gains due to increasing adoption rates in the global electric vehicle market and its solar energy business. At the same time, investors remain convinced that billionaire Elon Musk, the chief executive of Tesla, will continue to push the company's disruptive technology ahead of its competitors.
"It's become clear this year just how far ahead of the competition the company is in terms of not only its technological abilities but its combination of range and performance at an affordable price," said Gary Robinson, portfolio manager of the Baillie Gifford US Equity Growth fund, who owns the stock.
Tesla will likely prove to have a more profitable business model than its rivals and post accelerating growth rates in its solar business, allowing its stock to more than double over the next 5 years, he said.
Overall, Tesla trades at 175 times its estimated earnings per share over the next 12 months, compared with valuations at 14 times estimated earnings per share for BMW and 16 times estimates earnings for Toyota Motor Corp, according to a research note from JP Morgan.
At the same time, #Tesla is expected to earn $2.29 per share on $30.8 billion in revenue during its current fiscal year, while #GeneralMotors is expected to earn $4.67 per share on $120.7 billion in revenue, according to Refinitiv.
Its inclusion in the #S&P will push the forward price to earnings ratio of the S&P 500 Index up an additional 0.4 times to near its highest valuation in history, according to a note from Goldman Sachs.
"Tesla's multiple of earnings is very high in nominal terms for any company in any industry at any time in history," the firm noted, keeping its $80 price target on the company's shares.
Despite the stock's high valuations, some long-term investors say that they are sticking with the company. "Near term, valuations tend to be less meaningful when you invest in the right teams," said Anthony Zackery, a portfolio manager at Zevenbergen Capital Investments.
Bears still abound in Tesla, focusing on Musk's track record of missed production targets, and on corporate governance risk after Musk was forced to step down as chairman to settle fraud charges in 2018.
Despite handing short sellers $33.8 billion in mark-to-market losses since the start of the year, Tesla remains the company with the most total money bet against it in the U.S. market, according to S3 Partners.
On the technical front, Tesla RSI stood at 67.732 the current price is trading Above All The Moving Average. So a Buy trade can be executed with the following target and stop-loss.
TRADE SIGNAL- #TESLA– BUY:655, TARGET: 705, STOP LOSS: 615.
#Tesla heads to the S&P after a meteoric rise and some investors want more
Shares of the electric vehicle maker are up nearly 700% over the last year, a meteoric rise that has punished short-sellers and turned it into the world's most highly-valued automaker.
The company's formal entry into the S&P 500 on Monday is expected to generate unprecedented activity near the close of trade on Friday as index-tracking funds load up on shares so their portfolios correctly reflect the index.
Still, Wall Street is divided over whether Tesla's days of heady gains are numbered.
Overall, Wall Street analysts have long been skeptical of Tesla. The 35 analysts tracked by Refinitiv have an average price target of $396.30 per share, which would represent a 36% decline from its current price. Yet in a sign of how split Wall Street is on the stock, target prices range from a high of $774 per share by Elazar Advisors to a low of $40 by GLJ Research.
Tesla closed Thursday at $655.90.
Some long-term investors say that they still expect to see #Tesla post-above-average gains due to increasing adoption rates in the global electric vehicle market and its solar energy business. At the same time, investors remain convinced that billionaire Elon Musk, the chief executive of Tesla, will continue to push the company's disruptive technology ahead of its competitors.
"It's become clear this year just how far ahead of the competition the company is in terms of not only its technological abilities but its combination of range and performance at an affordable price," said Gary Robinson, portfolio manager of the Baillie Gifford US Equity Growth fund, who owns the stock.
Tesla will likely prove to have a more profitable business model than its rivals and post accelerating growth rates in its solar business, allowing its stock to more than double over the next 5 years, he said.
Overall, Tesla trades at 175 times its estimated earnings per share over the next 12 months, compared with valuations at 14 times estimated earnings per share for BMW and 16 times estimates earnings for Toyota Motor Corp, according to a research note from JP Morgan.
At the same time, #Tesla is expected to earn $2.29 per share on $30.8 billion in revenue during its current fiscal year, while #GeneralMotors is expected to earn $4.67 per share on $120.7 billion in revenue, according to Refinitiv.
Its inclusion in the #S&P will push the forward price to earnings ratio of the S&P 500 Index up an additional 0.4 times to near its highest valuation in history, according to a note from Goldman Sachs.
"Tesla's multiple of earnings is very high in nominal terms for any company in any industry at any time in history," the firm noted, keeping its $80 price target on the company's shares.
Despite the stock's high valuations, some long-term investors say that they are sticking with the company. "Near term, valuations tend to be less meaningful when you invest in the right teams," said Anthony Zackery, a portfolio manager at Zevenbergen Capital Investments.
Bears still abound in Tesla, focusing on Musk's track record of missed production targets, and on corporate governance risk after Musk was forced to step down as chairman to settle fraud charges in 2018.
Despite handing short sellers $33.8 billion in mark-to-market losses since the start of the year, Tesla remains the company with the most total money bet against it in the U.S. market, according to S3 Partners.
On the technical front, Tesla RSI stood at 67.732 the current price is trading Above All The Moving Average. So a Buy trade can be executed with the following target and stop-loss.
TRADE SIGNAL- #TESLA– BUY:655, TARGET: 705, STOP LOSS: 615.
DAILY FUNDAMENTAL SNAPSHOTS
Asian shares edged lower on Tuesday amid uncertainty about Senate runoffs in Georgia, which could have a big impact on incoming U.S. President Joe Biden's ability to pursue his preferred economic policies. Shanghai Composite is up 0.44% at3,517.968. Overall, Singapore MSCIdown0.24% at 325.80. Over in Hong Kong, the Hang Seng Index up0.09% to 27,511. In Japan, the Nikkei 225 down0.66% at 27,140, while the Topix index wasdown0.50% to 1788.5. South Korea’s Kospiup1.34% to 2984.72. Australia S&P/ASX 200 down0.03% to6681.9.
European equities Mondayclosing. The #DAX futures contract in Germany traded 0.06% up at 13726.74, #CAC40 futures up0.68% at5589.0and the UK 100 futures contract in the U.K.up1.72% at 6,571.9.
In U.S. on Wall Street, the Dow Jones Industrial Average closed down1.25% at 30223.9the #S&P500down1.48% to 3700.7and the Nasdaq 100up 0.03% at12704.4,#NYSE closes at 14376.703down1.02%.
In the Forex market, #GBPUSD up0.20% at 1.35920. The #USDJPY down 0.15% at102.957.The #USDCHF down0.05% at 0.88064.#EURUSD up0.21% at 1.22683, #EUR/GBPup0.08% at 0.90252. The #USD/CNY down 0.02%at 6.4587, at the time of writing.
In the commodity market U.S. Gold futures down 0.25% at $1,937.60. Elsewhere, Silver futures up0.10% to $27.230 per ounce, Platinum down0.27% at $1063.16per ounce, and Palladium down0.11% to $2,376.50.
#Crude Oil down on Tuesday;# Brent crude oildown0.06% to $50.72 barrel while U.S. West Texas Intermediate (CLc1) isdown1.23% at $48.88.
In the Cryptocurrency Markets, #BTCUSD at 30367.68 up5.10%, #Ethereum at993.74 down4.94%, #Litecoin at 177.75 up4.71%, at the time of writing.
TOP STOCKS TO WATCH OUT TODAY:
BOEING Inc.down 5.298%at $202.72,#AMERICAN EXPRESS Co.down2.374% at$118.04,#ADOBE Inc. down2.955% to $485.34,#CSX CORP.down 3.041% to $87.99,#EBAY Inc. up 2.49% to $51.5,#GILEAD SCIENCES Inc. up 3.18% at $60.11.
#Economic news:
US:U.S. economic growth could surge later this year if most Americans are vaccinated against the coronavirus, but the gains would unlikely be enough for the Federal Reserve to withdraw its support, Cleveland Fed President Loretta Mester said on Monday.
The economy is likely to struggle in the near term after a rise in coronavirus infections led to more restrictions, both voluntary and mandated, Mester said.
While the "medium" term outlook was more promising, with vaccines likely to help people feel safer doing certain activities, she expects the economy to remain far from the Fed's inflation and full employment goals.
#Eurozone: The European Commission said on Tuesday that new U.S. tariffs on EU products disrupted ongoing negotiations with Washington to resolve a 16-year battle over aircraft subsidies and it hoped to find a swift solution with the next U.S. president, Joe Biden.
Important Data:USISM Manufacturing PMI (Dec)today at10:00 this time estimate to be 56.6,previously which was 57.5.US API Weekly Crude Oil Stocktoday at16:30previously which was -4.785M.JAPAN Services PMI (Dec)today at19:30this time estimate to be 47.2, previously which was 47.8.JAPAN 10-Year JGB Auctiontoday at 22:35previously which was 0.019%.
Asian shares edged lower on Tuesday amid uncertainty about Senate runoffs in Georgia, which could have a big impact on incoming U.S. President Joe Biden's ability to pursue his preferred economic policies. Shanghai Composite is up 0.44% at3,517.968. Overall, Singapore MSCIdown0.24% at 325.80. Over in Hong Kong, the Hang Seng Index up0.09% to 27,511. In Japan, the Nikkei 225 down0.66% at 27,140, while the Topix index wasdown0.50% to 1788.5. South Korea’s Kospiup1.34% to 2984.72. Australia S&P/ASX 200 down0.03% to6681.9.
European equities Mondayclosing. The #DAX futures contract in Germany traded 0.06% up at 13726.74, #CAC40 futures up0.68% at5589.0and the UK 100 futures contract in the U.K.up1.72% at 6,571.9.
In U.S. on Wall Street, the Dow Jones Industrial Average closed down1.25% at 30223.9the #S&P500down1.48% to 3700.7and the Nasdaq 100up 0.03% at12704.4,#NYSE closes at 14376.703down1.02%.
In the Forex market, #GBPUSD up0.20% at 1.35920. The #USDJPY down 0.15% at102.957.The #USDCHF down0.05% at 0.88064.#EURUSD up0.21% at 1.22683, #EUR/GBPup0.08% at 0.90252. The #USD/CNY down 0.02%at 6.4587, at the time of writing.
In the commodity market U.S. Gold futures down 0.25% at $1,937.60. Elsewhere, Silver futures up0.10% to $27.230 per ounce, Platinum down0.27% at $1063.16per ounce, and Palladium down0.11% to $2,376.50.
#Crude Oil down on Tuesday;# Brent crude oildown0.06% to $50.72 barrel while U.S. West Texas Intermediate (CLc1) isdown1.23% at $48.88.
In the Cryptocurrency Markets, #BTCUSD at 30367.68 up5.10%, #Ethereum at993.74 down4.94%, #Litecoin at 177.75 up4.71%, at the time of writing.
TOP STOCKS TO WATCH OUT TODAY:
BOEING Inc.down 5.298%at $202.72,#AMERICAN EXPRESS Co.down2.374% at$118.04,#ADOBE Inc. down2.955% to $485.34,#CSX CORP.down 3.041% to $87.99,#EBAY Inc. up 2.49% to $51.5,#GILEAD SCIENCES Inc. up 3.18% at $60.11.
#Economic news:
US:U.S. economic growth could surge later this year if most Americans are vaccinated against the coronavirus, but the gains would unlikely be enough for the Federal Reserve to withdraw its support, Cleveland Fed President Loretta Mester said on Monday.
The economy is likely to struggle in the near term after a rise in coronavirus infections led to more restrictions, both voluntary and mandated, Mester said.
While the "medium" term outlook was more promising, with vaccines likely to help people feel safer doing certain activities, she expects the economy to remain far from the Fed's inflation and full employment goals.
#Eurozone: The European Commission said on Tuesday that new U.S. tariffs on EU products disrupted ongoing negotiations with Washington to resolve a 16-year battle over aircraft subsidies and it hoped to find a swift solution with the next U.S. president, Joe Biden.
Important Data:USISM Manufacturing PMI (Dec)today at10:00 this time estimate to be 56.6,previously which was 57.5.US API Weekly Crude Oil Stocktoday at16:30previously which was -4.785M.JAPAN Services PMI (Dec)today at19:30this time estimate to be 47.2, previously which was 47.8.JAPAN 10-Year JGB Auctiontoday at 22:35previously which was 0.019%.
We Provide over 15 Trade signals for free to enhance Your Trading strategy so you can cash in potential market moves. Invite your friends to the group to take advantage of it. TRADE SIGNAL AS ON 12-01-2021
#EURSEK
BUY=10.099
TARGET=10.12380
SL=10.06242
#BRENT CRUDE OIL FUT
BUY=55.01
TARGET=57.00
SL=53.92
#BMW AG
SELL=69.09
TARGET=67.35
SL=69.61
#LITECOIN USD
SELL=142.99
TARGET=133.70
SL=149.798
#S&P 500
SELL=3793.59
TARGET=3767.10
SL=3822.00
#EURSEK
BUY=10.099
TARGET=10.12380
SL=10.06242
#BRENT CRUDE OIL FUT
BUY=55.01
TARGET=57.00
SL=53.92
#BMW AG
SELL=69.09
TARGET=67.35
SL=69.61
#LITECOIN USD
SELL=142.99
TARGET=133.70
SL=149.798
#S&P 500
SELL=3793.59
TARGET=3767.10
SL=3822.00
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#USDJPY
BUY=103.774
TARGET=104.023
SL=103.647
#COFFEE
BUY=125.84
TARGET=127.44
SL=124.80
#SAPAG
SELL=104.25
TARGET=101.35
SL=106.63
#ETHEREUM
BUY=1220.48
TARGET=1267.86
SL=1154.47
#S&P 500
BUY=3769.09
TARGET=3814
SL=3741.88
#USDJPY
BUY=103.774
TARGET=104.023
SL=103.647
#COFFEE
BUY=125.84
TARGET=127.44
SL=124.80
#SAPAG
SELL=104.25
TARGET=101.35
SL=106.63
#ETHEREUM
BUY=1220.48
TARGET=1267.86
SL=1154.47
#S&P 500
BUY=3769.09
TARGET=3814
SL=3741.88
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#USDMXN
BUY=20.69
TARGET=20.73
SL=20.63
#BRENT CRUDE OIL
BUY=66.43
TARGET=67.42
SL=65.32
#ELECTRONIC ARTS Inc.
SELL=142.17
TARGET=139.28
SL=143.86
#ETHEREUM
SELL=1598.40
TARGET=1436.28
SL=1735.74
#S&P 500
SELL=3892.16
TARGET=3857.25
SL=3926.51
#USDMXN
BUY=20.69
TARGET=20.73
SL=20.63
#BRENT CRUDE OIL
BUY=66.43
TARGET=67.42
SL=65.32
#ELECTRONIC ARTS Inc.
SELL=142.17
TARGET=139.28
SL=143.86
#ETHEREUM
SELL=1598.40
TARGET=1436.28
SL=1735.74
#S&P 500
SELL=3892.16
TARGET=3857.25
SL=3926.51
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TRADE SIGNAL AS ON 02-03-2021
#USDCAD
SELL=1.2683
TARGET=1.2648
SL=1.27291
#COFFEE
SELL=133.81
TARGET=132.26
SL=136.20
#APPLE COMP.
BUY=127.60
TARGET=129.87
SL=126.08
#ETHEREUM
BUY=1546.90
TARGET=1653.54
SL=1481.80
#S&P 500
BUY=3883.91
TARGET=3911.40
SL=3857.29
TRADE SIGNAL AS ON 02-03-2021
#USDCAD
SELL=1.2683
TARGET=1.2648
SL=1.27291
#COFFEE
SELL=133.81
TARGET=132.26
SL=136.20
#APPLE COMP.
BUY=127.60
TARGET=129.87
SL=126.08
#ETHEREUM
BUY=1546.90
TARGET=1653.54
SL=1481.80
#S&P 500
BUY=3883.91
TARGET=3911.40
SL=3857.29
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#CADCHF
SELL=0.73478
TARGET=0.73430
SL=0.73574
#NATURAL GAS
BUY=2.498
TARGET=2.565
SL=2.462
#TWITTER
BUY=71.17
TARGET=73.92
SL=69.03
#LITECOINUSD
BUY=225.18
TARGET=228.05
SL=223.41
#S&P500
SELL=4085.99
TARGET=4073.25
SL=4094.48
#CADCHF
SELL=0.73478
TARGET=0.73430
SL=0.73574
#NATURAL GAS
BUY=2.498
TARGET=2.565
SL=2.462
BUY=71.17
TARGET=73.92
SL=69.03
#LITECOINUSD
BUY=225.18
TARGET=228.05
SL=223.41
#S&P500
SELL=4085.99
TARGET=4073.25
SL=4094.48