Stock Market Today: Tesla Scorches to New Highs; Buy Nike?

Another day, another high. The slow grind higher continued in the stock market today, although the S&P 500 essentially closed flat after Wednesday’s session.

Until some drama picks up or investors have a reason to sell, the path of least resistance has been higher.

With the SPDR S&P 500 ETF (NYSEARCA:SPY) up 28% so far on the year, investors are wondering how much upside could be left.

Movers in the Stock Market Today

The rally in Tesla (NASDAQ:TSLA) must have the $TSLAQ community fuming. The stock hit new all-time highs Wednesday, at $395.22, as shares are now up 123% from the June lows. Developments in China, the viral reaction to the Cybertruck and Tesla spreading its vehicles around the world have helped fuel the run. Is $420 next?

Broadcom (NASDAQ:AVGO) stock rallied 1.1% and hit new highs on Wednesday. The company that’s usually known as a buyer is considering a sale of its radio-frequency unit, according to sources. It’s reportedly working with Credit Suisse to find a buyer for RF, which had over $2 billion in revenue in fiscal 2019. Some estimate it could fetch a value of $10 billion.

Of possible buyers, Apple (NASDAQ:AAPL) has been mentioned.

Will Star Wars disappoint? After Disney’s (NYSE:DIS) Frozen 2 hit $1 billion in the box office last weekend, bulls were hopeful for the company’s upcoming Star Wars film, set for release this Friday. However, recent reviews have not been too favorable. Will that be enough to deter consumers from seeing the film?

Cigna (NYSE:CI) stock jumped 2.5% after announcing it will sell its group life and disability insurance business. The $6.3 billion sales goes to New York Life and will allow Cigna to focus on its core growth — and buying back more stock. The company also announced it will increase its share repurchase program from $3 billion to $4 billion.

Investors are starting to realize some of the fallout from Boeing’s (NYSE:BA) 737 MAX production halt. It’s not just the airlines that are being impacted but the suppliers as well, as General Electric (NYSE:GE) could suffer further cash flow issues with reduced production. This comes at a time where GE simply cannot afford such a development.

Heard on the Street

In pre-market trading, Twitter (NYSE:TWTR) stock was under pressure. That didn’t last for long though, with shares rebounding and climbing 0.9% on the day. The early decline came after Citigroup analysts maintained their “neutral” rating, but cut their price target to $36 from $45, with concerns centered on near-term revenues.

Nike (NYSE:NKE), which hit a new all-time high above $100 in today’s session, was named a Top Pick and Best Idea at Guggenheim. The analyst gave a slight bump to his price target, up to $115 from $110.

Netflix (NASDAQ:NFLX) stock hit its highest price since Aug. 1 on Wednesday. The move comes on newfound momentum and as Cowen analysts expect “manageable” churn despite the momentum in Disney’s new streaming platform. They have a “buy”-equivalent rating and $415 price target on the stock, implying almost 30% upside.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell is long AVGO, DIS and AAPL. 

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