Originally published by Rivkin Securities
US stocks opened lower last night but managed to recover most of the losses throughout the session. The Dow Jones eventually closed virtually flat while the S&P 500 finished down 0.17%.
Tesla (NASDAQ:TSLA) stock closed at a three-month low after the hype from the ‘take private’ tweet wore off and the market realised that this was never going to happen. CEO Elon Musk is still at risk of lawsuits from this, given that his statement about funding being secured was clearly false. Tesla fell 4.2% overnight to US$288.95.
On the other hand, Amazon's (NASDAQ:AMZN) share price briefly gave the company of a market capitalisation of US$1tn although at the close it was just below this level. This is the second US company to hit a market valuation of US$1tn after Apple (NASDAQ:AAPL) reached this level in early August.
The Reserve Bank of Australia decided to keep rates on hold at its meeting yesterday although this was widely expected by markets. The commentary wasn’t vastly different to prior statements so the reaction to the announcement was muted. The expectation is still that the next change will be up although markets had actually priced in a tiny chance of a cut before yesterday’s meeting.
Today Australia’s GDP for the second quarter will be released which is expected to come in at 0.7%. This would be lower than the prior quarter’s growth of 1% and would represent a moderately healthy growth rate.
ASX 200 futures are down 18 points this morning.
Data Releases:
- Australia GDP 11:30am AEST
- Canada Interest Rate Decision 12:00am AEST