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U.S. stock markets opened lower on Thursday after fresh data suggesting that the surge in coronavirus cases across the U.S. is derailing the economic recovery. The death toll hit 1,100 again on Wednesday.
Labor Department numbers showed that initial jobless claims rose for the first time since April to 1.416 million, suggesting that the pace of layoffs is picking up again after slowing gradually over the previous three months. The number of continuing claims, which are reported with a one-week lag to initial claims, fell more sharply than expected to 16.197 million.
Tesla Inc on Wednesday posted the second-quarter profit as cost cuts and strong deliveries helped offset coronavirus-related factory shutdowns and clearing a hurdle that could lead to the electric carmaker’s inclusion in the S&P 500 index.
Tesla shares are up 280% from the beginning of the year, still down 11.32% from its 52-week high of $1,793.02 set on July 13. They are outperforming the Nasdaq which is up 19.32% from the start of the year.
Tesla’s second-quarter revenue fell to $6.04 billion from $6.35 billion a year earlier, but surpassed analyst expectations for revenue of $5.37 billion. The company, however, saw revenue decline in its core automotive business, though a 21% rise in regulatory credit kept downside momentum in check.
Automotive revenue fell 4% to $5.2bn for the quarter year-on-year as deliveries fell 5% for the quarter from a year earlier. Model 3/Y deliveries rose 3% to 80,277 3% and Model S/X deliveries fell 40% for the quarter from a year earlier.
Tesla reported $5.18 billion in second-quarter automotive revenue, but its share of income from regulatory credits – payments the company receives from other carmakers to offset emissions – increased to $428 million from $354 million in the first quarter.
Tesla’s solar roof installations roughly tripled in the second quarter compared with the first quarter. The segment reaped $293 million in revenue in the second quarter, down from $324 million in the year-ago period.
Musk also announced that Travis County, Texas, would be the site of Tesla’s new factory.
On the technical front, the RSI is at 71.64% and suggests that the market can move in an upward direction. The current price is trading above all the Moving Averages. The stochastic is forming an upside crossover.
Overall Bias is Positive and Short-term trades can be initiated with below mentioned Stop Loss and Profit targets.
Trade Suggestion—BUY AT $1589 Take Profit at $1670 Stop Loss at $1520