US Market On 04 Apr. Still Oil Stock ? Exit Tesla ? What Else ?
US equities were mixed on 1st trading day of Q2 2023.
No guessing required as to which sector stocks outperformed yesterday ?
Oil of course, as covered in my ytd posting. Click here to find out more details.
In fact, prices began climbing on news of OPEC+ production cut on Sunday.
By The Time Market Closed :
Dow Jones led major indexes with gains of +0.98% to 33,601.5).
S&P 500 also closed higher at +0.37% to 4,124.51.
Nasdaq - the tech-heavy index was the exception, slipping -0.27% to 12,189.45. It is not surprising to have a “mild” pullback in order to scale higher - correct ?
If there is anything that we need to pay close attention consistently, it would be all the official data reports released on weekly or monthly basis.
This is because they are insights into US economy’s state of health that would directly & indirectly affect (a) investment patterns and (b) what to invest.
Yesterday the Institute for Supply Management (ISM) released its Purchasing Manager’s Index (PMI) report.
ISM PMI - Mar 2023
For Mar, the Manufacturing PMI index has further decreased by -1.4 to 46.3; the lowest since May 2020 and the 5th straight month of contraction in factory activity.
This maybe a “growing” concern because a “consensus of 47.5” implies that (1) rising interest rates and (2) growing recession fears are beginning to weigh on businesses.
S&P 500 - Top 10 Gainers & Losers on 04 Apr 2023
Fossil-fuel companies dominated the list of top gainers on 04 Apr 2023.
While $Tesla Motors(TSLA)$ shares skidded on underwhelming delivery numbers; perching the top Loser list.
When I explored the subject of investing in Energy stock in my yesterday's post , there were feedback that perhaps it might be “too late” to enter the market now.
I have investigated further (today) and I really think the opportunity (for profits) still exists.
However, investor has to be quick & sharp when bidding on your choice oil or energy stock.
Crude Oil Price - Past One Year
Crude oil price closed at $80.95 yesterday.
Its last peaked on 03 Oct 2022 at $92.64; that is +$11.69 difference / potential gain.
Backtracking further, the higher peak was on 06 Jun 2022 at $120.67; that is +39.72 difference / potential gain.
With OPEC+ members pledging to maintain the cutback until end 2023; the sky is the limit when it comes to oil price.
Secretly (ok not so secret !) I think US bank Goldman Sach agrees with my argument.
Referring to my yesterday’s post on Tesla’s Q1 2023 delivery (click here to read !) I felt that its share price should rise given a +36% gain in total delivery.
However the market has a different point of view and Tesla sank by -6.12% to $194.77.
The “good” news is that today’s pre-market price is recovering its lost ground.
Will the good time last or will Tesla continue to lose ground as its competitors (especially the established European brands) are chipping away at its market share; slowly but surely.
Do you think there is room for oil stocks prices to rise further ?
Do you think you will be looking at investing in oil stock soon ? Pls do your own due diligence ok !
Do you think Tesla will be able to regain all its lost grounds (stock price) ?
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