Stock Market Today: Elon Musk Says Tesla Stock Is Too High

Stock Market

It was a rough day for bulls in the stock market today. Equities took in on the chin, with the S&P 500 and Nasdaq Composite both falling more than 3% at one point.

After reporting earnings, Amazon’s (NASDAQ:AMZN) stumble and Apple’s (NASDAQ:AAPL) relatively flat response didn’t help matters. Remember, these are two of the three largest companies in the country, just behind Microsoft (NASDAQ:MSFT).

All the mega-cap tech names have now reported. Does FAANG have much upside left, and if not, can the rest of the market pick up the slack? We’ll see what the bulls are made of this month.

Not So Fast

Amazon and Apple reported earnings on Thursday after the close, but the talks didn’t end there.

Apple snagged a Top Pick designation from JPMorgan. According to the analysts, the work-from-home and social distancing orders put in place have helped the company. Further, JPMorgan expects better-than-expected iPhone 11 demand. The analyst maintains Apple with an “overweight” rating, but raised their price target to $350 from $335.

Apple beat on earnings and revenue, driven higher by its Services business. However, management still faces plenty of uncertainty with the novel coronavirus.

Amazon has some rough waters ahead with an investigation from the House of Representatives’ antitrust subcommittee and a probe by the Federal Trade Commission. Amazon employees were apparently using third-party sellers to collect data for private-label products and Congress wants more information. Legislators are calling on CEO Jeff Bezos for an explanation.

Movers in the Stock Market Today

Casinos making a comeback? Not quite. Macau gross gaming revenue tumbled almost 97% to $95 million, coming in below already depressing estimates looking for a decline in the low-90% range. Macau’s gross gaming revenue is already down 68.7% this year and is expected to fall 40%-60% in 2020, according to analysts.

The news caused several big name U.S. casinos to take a hit. Wynn Resorts (NASDAQ:WYNN) fell 5.5% and MGM Resorts (NYSE:MGM) dropped 5.5%. Caesars Entertainment (NASDAQ:CZR) and Boyd Gaming (NYSE:BYD) each fell roughly 3% on the day as well.

Not this again. Tesla (NASDAQ:TSLA) shares dropped over 10% at one point after CEO Elon Musk tweeted that the company’s shares are “too high.” Musk has had issues in the past with the Securities and Exchange Commission about his tweets and it’s unclear if he got the SEC’s approval for this one. He also stated that he is “selling almost all physical possessions” and to “give people back their FREEDOM.”

Exxon Mobil (NYSE:XOM) was a Top Stock Trade on InvestorPlace, after the stock fell 7.1% on earnings. The company reported a surprise loss for the quarter, losing $610 million against a $2.4 billion gain last year. It took a $2.9 billion charge and revenue fell 11.7% to $56.1 billion despite production climbing 1.6% year over year. Exxon also announced it will cut capital expenditures to $23 billion. That’s a roughly 30% reduction of its previous guidance of $33 billion.

Debate continues about the meat supply chain in the U.S. as Kroger (NYSE:KR) will reportedly limit sales on beef and pork products in some stores. However, management feels confident it will keep its shelves stocked. Walmart (NYSE:WMT) does not yet have any plans to limit sales.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. Kenwell is long AAPL.

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