Welcome to MarketBites! Here's all you need to know about yesterday's market news.
"It does not matter how slowly you go, as long as you don't stop."
PORTFOLIO MANAGER COMMENTARY
Stocks started the 4th quarter with a strong rally, as Treasury yields eased levels not seen in about a decade. The S&P rose 2.59%, the Nasdaq climbed 2.27%, and the Dow finished the day up 2.66%. Monday marks the best trading day for the S&P and Dow since July 27.
According to Sam Stovall, CFRA chief investment strategist, the rally Monday is unsurprising considering how oversold the markets have been. “Because the S&P was down more than 9% in September... because the ISM was weaker than expected – ditto for construction spending – people are now surmising, ‘Hey, maybe the Fed won’t be as aggressive,’” he told CNBC.
Shares of Credit Suisse fell to start the day before ended the day up 2.30% along with the broad market rally. Still, there are many concerns surrounding the financial health of the company. The cost of insuring Credit Suisse against default, as measured by credit-default swaps, have been continuing to rise.
CHART OF THE DAY
Tesla reported on Sunday that they delivered a record 343,830 vehicles in the three-month period ended in September. This is up from 255,000 in the 2nd quarter which was dented due to a temporary shutdown of its factory in China. It is also up 42% from last year's third quarter when it delivered 241,000 vehicles. Despite the record-breaking 343,830 vehicles delivered this past quarter, it still missed analysts' estimates of 364,660. Tesla ($TSLA) stock was down 8.61% on Monday following the news.
By Raymond Kanyo