Originally published by Rivkin Securities
Although the Dow Jones Industrial Average closed basically flat overnight, there were several tech stocks that got battered. Tesla (NASDAQ:TSLA) has been hit by a series of negative events recently, including the downgrading of its bonds by Moody’s and a fatal car accident involving one of its Model X vehicles. The share price dropped 7.6% last night to a one-year low. Amazon (NASDAQ:AMZN) was also hit, falling 4.4% while Facebook (NASDAQ:FB) managed to stabilise after several days of losses.
Strength in the US dollar caused a large decline in precious metals with gold falling US$16 to US$1,325. The Australian dollar also fell back to US$0.766. Bond yields are also staying near multi month lows with Australia’s 10-year bond now trading at a yield of 2.58% which is a year-to-date low and well below the 2.9%+ that it traded at in mid-February.
The final reading of US fourth quarter GDP was revised up by 0.4% last night to 2.9%. This was a bigger upward revision than expected and puts that figure in fairly stark contrast to the Atlanta Fed’s expectation of 1.8% GDP growth for the current quarter. Tonight the final reading of UK GDP will be released.
Data Releases:
- UK Final GDP 7:30pm AEDT