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Needham analyst warns Tesla’s value is really ‘closer to $200’ per share, about 30% lower from here

By Matthew J. Belvedere


  • Tesla stock has tumbled in the wake of CEO Elon Musk’s Aug. 7 tweet, floating taking the electric automaker private, saying “funding secured.”
  • Needham analyst Rajvindra Gill says he wonders about the financing and why Musk would tweet such an important development.
  • J.P. Morgan also raised questions Monday, cutting its December price target for Tesla shares back down to $195, reiterating an underweight rating.



The Pound-to-Yen Rate Week Ahead Forecast: Break Lower from Wedge Hints at Further Declines

By Joaquin Monfort


The Pound-to-Yen exchange rate broke beneath the lower bound of a bearish wedge formation on the charts last week, suggesting that losses will continue during coming days.


The main event for the Pound in the week ahead will be testimony from Bank of England (BOE) governor Mark Carney the Parliamentary Treasury Select Committee, on Wednesday, August 22, covering the inflation and economic outlook.


The main release for the Yen in the week ahead is inflation data for July. Consensus is for a 0.4% annualized rise in consumer prices during July, down from 0.7% back in June.


The Yen will be sensitive to inflation data after the Bank of Japan relaxed its control of long-term bond yields at its last meeting.


If inflation rises more than expected then the yield will be able to rise further than it did before, supporting the Yen since investors tend to reward rising interest rates of any kind. Not all see the data providing a boost to the currency however.



Stock futures inch up, putting S&P 500 closer to record levels

By Ryan Vlastelica


At current levels, the S&P is less than 0.6% below all-time highs while the Nasdaq is 1.4% below its record. The Dow is 3.2% under is own, but it is very close to exiting a correction it has been mired in since February.


With the second-quarter earnings season essentially over and no economic data on tap, investors are turning their attention to upcoming news from the Federal Reserve. The minutes from the central bank’s latest meeting will be released on Wednesday, and on Friday, Fed Chairman Jerome Powell will give a speech at the Fed’s annual summer retreat in Jackson Hole.


Both the minutes and the speech will be scoured for any insight into what the Fed sees as potential problem spots for the economy — in particular, market participants will be looking to hear Powell’s thoughts on trade policy and whether the currency crisis in Turkey could spread to other emerging markets or regions — as well as for any clues into the Fed’s policy plans on interest rates.


“Should the two sides manage to broker a truce we would expect risk sentiment to lift dramatically, catapulting the markets higher,” wrote Jasper Lawler, head of research at the London Capital Group. “Let’s not forget that the trade war story has been weighing on stocks, pressuring equities for the last few months so any signs that the risk is moderating on a serious scale will boost investors’ appetite for riskier assets and push equity indices higher.”



Netflix (NFLX) Stock Surged Monday: Time to Buy Again?

By Benjamin Rains


Netflix saw its revenues soar roughly 43% to hit $3.91 billion last quarter, which should have helped the firm’s stock price climb even more. Instead, shares of NFLX had sunk nearly 18% since the company reported its Q2 financial result on July 16, prior to Monday’s climb. Shares of Netflix are still up nearly 100% during the 12 months and look great over a two-year stretch.


Netflix did close the quarter with over 130 million subscribers worldwide, which marked roughly 25% growth from the year-ago period’s 104 million. Plus, the company has committed to spend billions on content to attract new users. But, NFLX’s U.S. subscriber growth outlook highlights a somewhat uncertain future amid increased competition.


Netflix is projected to see its Q3 revenues surge by nearly 34% to reach $3.99 billion, based on our current Zacks Consensus Estimate. Meanwhile, NFLX’s adjusted quarterly earnings are projected to skyrocket over 134% to $0.68 per share.



Oil Steady Before Supply Data While U.S. Taps Strategic Reserves

By Tsuyoshi Inajima and Grant Smith


Oil traded near $67 a barrel as investors weighed an expected decline in American inventories against the U.S. government’s plans to release crude from its emergency stockpiles.


The U.S. government will offer 11 million barrels of crude from its Strategic Petroleum Reserve, a move that could help offset a tight oil market from sanctions on Iran’s exports. Stockpiles in the shale country are expected to have declined last week. Meanwhile, investors are also awaiting trade talks between China and the U.S., and Federal Reserve Chairman Jerome Powell’s speech later this week.


Oil has declined for seven straight weeks as uncertainty over a U.S.-China trade standoff and the risk of economic turmoil in Turkey spilling over into other emerging markets weighed on prices. Investors are also closely watching supplies from the U.S. and the Organization of Petroleum Exporting Countries before American sanctions on Iran’s oil take effect in November.



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