Stock Market Today: Dow Jones Reverses Higher; Tesla Stock Surges On Elon Musk Comments

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Stock Market Today Mid-Morning Updates

On Wednesday, the Dow Jones Industrial Average rose by 44 points in light of a key gross domestic product (GDP) revision. This comes as major stock indexes looked to add to Tuesday’s stock market rebound.

Seeing how trading volume is relatively light this week, investors now have to juggle a number of developments with the Omicron variant impacting the economic recovery in the U.S. and around the globe. Also, these updates go hand-in-hand with expectations for tighter monetary policy from the Federal Reserve next year. In regards to the Omicron variant, it continues to overtake other coronavirus variants and now accounts for the majority of new infections.

With that being said, President Joe Biden on Tuesday announced a series of new measures to address the virus. For instance, this would include the opening of additional federal COVID-19 testing and vaccination sites and sending 500 million at-home rapid tests to Americans for free next month. 

Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) and Microsoft (NASDAQ: MSFT) were mixed after the stock market opened on Wednesday. Also, Home Depot (NYSE: HD) and Nike (NYSE: NKE) are looking to extend their rebound. 

Meanwhile, EV companies like Rivian (NASDAQ: RIVN) lost around 2% while Lucid Group (NASDAQ: LCID) gained more than 2%. Shares of EV leader Tesla (NASDAQ: TSLA) were also up nearly 4% Wednesday morning. Also, Chinese EV leaders like Li Auto (NASDAQ: LI) and Xpeng Motors (NYSE: XPEV) were relatively flat after Wednesday’s open.

Dow Jones Today: All Eyes On Upcoming Economic Impact From Omicron

Following the stock market open on Wednesday, the Dow, S&P 500, and Nasdaq Composite are trading higher by 0.09, 0.15%, and 0.17% respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) was flat on Wednesday morning, while the SPDR S&P 500 ETF (NYSEARCA: SPY) traded 0.0099% higher.

Earlier this morning, the Commerce Department posted its third-quarter gross domestic product (GDP) estimate. In detail, third-quarter GDP was revised to 2.3% from the 2.1% rise previously reported. This, however, would mark a deceleration from the 6.7% jump posted in the second quarter. This comes after personal consumption, the biggest contributor to domestic economic activity is up by 2.0%. This is higher than the 1.7% increase in the previously reported second estimate.

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Tesla Shares Jump On Elon Musk’s Latest Update On Share Selling Plans

Tesla is among the notable gainers in the stock market today. As of 10:06 a.m. ET, TSLA stock is currently holding on to gains of 4.04%. For the most part, this would be thanks to CEO Elon Musk having revealed that he has “sold enough” stock. This would be in reference to his goal of selling 10% of his shares. Interestingly, however, Musk has actually increased his holdings in Tesla due to the exercising of options. With Musk seemingly halting his TSLA stock selling spree, investors seem to be keen on the company’s shares yet again. 

All things considered, I wouldn’t blame them for thinking so. Despite the recent weakness in Tesla’s shares, the company remains a leading name in the booming electric vehicle (EV) industry. The likes of which could, in theory, be the future of the automotive world amidst growing environmental issues. Nonetheless, some investors appear to see an opportunity in TSLA stock today.

Source: TD Ameritrade TOS

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Apple Stock Receives More Bullish Analyst Calls

In other news, Apple is once again turning heads on Wall Street. From its industry-leading portfolio of comprehensive consumer tech offerings to its current endeavors, this is understandable. In fact, Citi (NYSE: C) analyst Jim Suva provided a rosy update on AAPL stock earlier today. Namely, Suva reiterated the firm’s Buy rating while raising its price target from $170 to $200. According to the analyst, Apple could see “resilient” demand for its products and services in the fiscal year 2022. Suva cites related market share gains throughout 2021 as a key factor for this.

If all that wasn’t enough, he also notes that investors should consider Apple’s long-term plans. In other words, Suva feels that Apple’s current market value is not accurately representing the company’s potential in emerging fields. This includes augmented reality and virtual reality tech among others. Adding to that, AAPL stock also got bumped up to Aaa at Moody’s Investors Service. The credit research firm cites “strong liquidity and earnings power” as key growth drivers for Apple over the next few years. As it stands, AAPL stock is currently trading higher by 0.11% as of 10:06 a.m. ET.

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