This Week’s Stock Commentary

Both the S&P 500 and NASDAQ indices approached all time highs this past week, despite Congress being deadlocked over an additional stimulus bill and retail sales growing slower than forecasted in July. Here are the top 5 performers from the NASDAQ 100 this past week:

TSLA +16.36%: Tesla surged this week, primarily because of its announcement of a 5 for 1 stock split, meaning that each shareholder will see the number of shares they own increase by a factor of five, although the value of the shares will be adjusted accordingly. In other words, the stock split does not change the value of the company itself, yet the action tends to boost a company’s stock in the short term as people anticipate higher volume from investors. Morgan Stanley and Bank of America also upgraded Tesla, giving the stock an additional boost during the week. Tesla is up 283.65% YTD.

QCOM +6.94%: Qualcomm, the semiconductor company, was up nearly seven percent this past week, after an appeals court overturned a decision that would have barred Qualcomm from forcing customers to sign licensing agreements, if they wanted Qualcomm’s chips. Licensing revenue generates billions of dollars for the company. Qualcomm is up 30.27% YTD.

FOXA +5.49%: Fox, the media giant, rose nearly 5 and half percent this week, after posting solid quarterly earnings. The stock is down 30.05% YTD.

KLAC +4.59%: KLA corporation, a capital equipment company, exceeded analysts’ expectations, earnings-wise, prompting the stock to jump 4.59 percent over the week and hit an all time high as well. The stock is up nearly 18% YTD.

AMAT +3.65: Applied Materials’ stock was up 3.65 percent this week, after its earnings and outlook topped analysts’ expectations.

In Other News:

The number of people filing for unemployment this past week was below 1 million, the first time that has happened since the pandemic began. With stimulus talks stalled, that might not last, and it’s going to be a much harder slog ahead, warns Ryan Sweet, head of monetary policy research at Moody’s Analytics.

Stock indices approaching all-time highs this past week, despite Democrats and Republicans remaining far apart on a stimulus deal and the likelihood of President Trump’s executive orders not having much of an effect on the economic recovery, has some Wall Street analysts worried. Some fund managers warn the rally makes the market more vulnerable to a sharp sell-off if traders suddenly priced in no-deal.

Disclaimer: This is for informational purposes only and is not to be construed as financial or investment advice. It is not an endorsement of any company or a recommendation to buy, sell or hold any security. Investors should determine for themselves whether a particular security or product is suitable for their investment needs or should seek such professional advice for their particular situation.

Stumbled into a data-centric role several years ago and have not looked back! Passionate about leveraging technology to uncover answers and improve the world.

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