Update: The Stock Market Is Still All Over the Place
The volatile stock market followed a familiar pattern today, falling sharply in the morning and roaring back in the afternoon.
The Dow Industrials index was down more than 500 points in morning trading, before staging a strong comeback. It closed up 34 points, or 0.14 percent on the day. The Entrepreneur Index™ also rallied in the second half of the day to post a gain of 0.54 percent.
Technology stocks led the way. The technology-heavy Nasdaq composite index was up 0.74 percent. Facebook posted the biggest gain in the sector and on the Entrepreneur Index™, rising 3.25 percent. A Deutsche Bank tech analyst ranked the company his top pick among large internet company stocks today, citing valuation as a major reason. Facebook shares are down more than 35 percent from a peak in July.
Other tech stocks posting good gains included chipmakers NVIDIA Corp. (2.93 percent) and Analog Devices (2.38 percent). Software maker Adobe Systems Inc. was up 2.56 percent and Twitter rose 1.86 percent.
Tesla was up 2.01 percent today, despite more combative remarks toward the SEC from CEO Elon Musk in a interview with 60 Minutes that aired yesterday. The regulator and Tesla came to an agreement earlier this year over market-moving tweets Musk had made about taking the company private.
Tesla shares have been among the best performers in the market over the last three volatile months, rising more than 30 percent since early October. A Piper Jaffray technical analyst suggested today that if the stock can reach the $390 level -- it's currently at $365 -- it could cause another big squeeze on short-sellers of the stock. With short interest of more than 20 percent of the public share float, the analyst suggested that a move above $390 could force massive buying by shorts to cover their losing positions. He said it could rapidly drive the share price above $500.
Ford Motor Co. on the other hand, fell 3.4 percent today. The stock had been trending up from a low in late October but is now back well below $9 per share, in part because of growing pessimism about a trade deal between China and the United States. China has leveled tariffs on U.S. cars in retaliation for tariffs imposed on Chinese exports.
Fedex Corp. continued to slide today, falling 4.2 percent. It was down more than six percent on Friday, after the abrupt departure of the head of its Fedex Express business unit. The shares were downgraded to neutral by Bank of America Merrill Lynch analyst Ken Hoexter today.
Under Armour Inc. (-4.52 percent) was also down sharply today, posting the biggest decline on the Entrepreneur Index™. The maker of active apparel surged more than 15 percent after reporting strong earnings in late October and is up 58 percent so far this year. It will hold an annual analyst/investor meeting on Wednesday where senior executives will discuss the strategy and outlook for the company.
The Entrepreneur Index™ collects the top 60 publicly traded companies founded and run by entrepreneurs. The entrepreneurial spirit is a valuable asset for any business, and this index recognizes its importance, no matter how much a company has grown. These inspirational businesses can be tracked in real time on Entrepreneur.com.