Tesla Stock Is Dropping, XPO Logistics Is Soaring, and the Dow Is Set to Open at a Record

The stock-market rally continues. U.S. indexes are set to open at record levels.

Dow Jones Industrial Average futures and S&P 500 futures are up 0.3%. Nasdaq Composite futures are up 0.4%.

Some stocks are higher in overseas trading as well. Hong Kong’s Hang Seng gained 0.4% in Thursday trading, but the U.K.’s FTSE 100 is down 0.4%.

Although the U.S. market is powering higher, shares of Tesla (ticker: TSLA) may take a pause. Stock in the EV pioneer is up more than 100% over the past three months. It’s an incredible run, but analysts are feeling a little more nervous about valuation. Last week, Baird analyst Ben Kallo—a longtime Tesla bull—downgraded shares to the equivalent of Hold from Buy. Thursday, Morgan Stanley analyst Adam Jonas downgraded Tesla shares from the equivalent of Hold to Sell. He increased his price target for the stock, however, from $250 to $360.

Tesla shares fell 3.6% Wednesday. Shares are down another 2.3% in premarket trading Thursday. Sometimes investors feel forced to take some profit.

Shares in XPO Logistics (XPO) are soaring in premarket trading, with a gain of more than 17%. The company announced it was looking at “strategic alternatives.” That means management is willing to take steps, such as selling assets or pursuing a merger, because they are unhappy with the company’s valuation.

“We continue to trade at well below the sum of our parts and at a significant discount to our pure-play [logistics] peer,” said CEO Bradley Jacobs in the company’s news release. “That’s why we believe the best way to continue to maximize shareholder value is to explore our options.”

Educational publisher Pearson (PSO) stock is off 9%. The company’s 2020 earnings guidance disappointed investors and the CFO is taking another job as well.

Shares in aluminum producer Alcoa (AA) are down 2.8%. Earnings, reported Wednesday evening, missed Wall Street estimates.

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