Investors keep waiting for geopolitical tensions to play a role in the market, but that hasn’t been the case. Of course, traders were on their toes in the stock market today, but nothing ultimately materialized of the tension between Iran and the U.S.
Last week’s attack on Iran sparked a selloff in U.S. equities on Friday, as investors went into the weekend fearful of escalation. Everyone seemed to exhale on a bit on Monday and relax a little more on Tuesday.
While perhaps not an all-clear, the focus is getting back to stocks.
A Ride Down the Electric Avenue
Tesla (NASDAQ:TSLA) stock continues to shred any hope among short sellers, as shares burst higher by more than 4% to new all-time highs of $471.32 on Tuesday. Suddenly, $500 doesn’t seem so far-fetched, huh?
In any regard, the stock wasn’t just rallying for the sake of rallying on Tuesday. Instead, the move came on news that Tesla will launch and build its coming Model Y in its Shanghai Gigafactory, where it is now producing and delivering the Model 3. The Model Y will likely have more demand than all of Tesla’s other models combined, CEO Elon Musk said.
That’s not the only electric vehicle news, though. At the CES show in Las Vegas, Sony (NYSE:SNE) unveiled a prototype electric vehicle. The vehicle has 33 sensors inside and outside the car, and includes partners like Qualcomm (NASDAQ:QCOM), Nvidia (NASDAQ:NVDA) and BlackBerry (NYSE:BB), among others.
While it’s cool to see new companies shaking up the automotive landscape, it’s hard to imagine Sony’s car gaining much traction while so many others — excluding Tesla — are having trouble with electrification. Of course, a partnership with Ford (NYSE:F), Toyota (NYSE:TM), General Motors (NYSE:GM) or someone else is always possible, but seems unlikely at this point.
Speaking of Qualcomm, the company announced a new car-to-cloud platform. The service will allow car companies to connect their vehicles to the cloud for analytical and updating purposes. Qualcomm also announced the Snapdragon Ride platform, an open and scalable autonomous driving solution.
Currently, Nvidia is a dominant force on the autonomous driving solutions front.
Movers in the Stock Market Today
Apache (NYSE:APA) shares exploded higher on Tuesday, ripping 26.8% — its biggest one-day gain in more than four decades — after announcing that it found “significant” oil deposits. The find comes off the coast of Suriname, from a project many feared would be unproductive.
Bank of America has already upgraded the stock to “buy” from “neutral” and upped its price target to $36 from $28, implying 10% upside even after Tuesday’s move. The analysts call the discovery a “potential game changer.”
Gogo (NASDAQ:GOGO) investors were paying attention to CES this afternoon, with Delta Air Lines’ (NYSE:DAL) CEO set for a presentation. “Wifi should be free on all flights,” Ed Bastian said. However, it will be a “couple of years” before that’s the case. Gogo shares fell 6.4% on the day.
Warren Buffett is known for buying when there’s blood in the streets. May he be taking advantage of Boeing’s (NYSE:BA) hardships? Shares rallied over 1%, but failed to really gain traction on rumors that Buffett’s Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) is building a stake in the company.
While it may very well prove untrue, Boeing does have a lot of components that Buffett tends to find attractive. Hefty, consistent cash flow, a nice dividend and a backlog of orders that spans years. Remember, Berkshire bought Precision Castparts just a few years ago, and has bet big on airline stocks like Delta, United Airlines (NASDAQ:UAL) and American Airlines (NASDAQ:AAL). Plus, Boeing just shook up its CEO spot.
Heard on the Street
Square (NYSE:SQ) jumped more than 3% after being upgraded to “buy” from “neutral” at Bank of America. The analyst assigned a $75 price target, implying 16.3% upside from current levels.
Micron (NASDAQ:MU) shares ripped about 9% to new 52-week highs. The move comes after Cowen analysts upgraded the stock to “outperform” from “market perform,” and raised their price target from $50 to $70.
Both Square and Micron were on the Top Stock Trades list from Tuesday.