Cars were in the news today along with Facebook which stumbled after Bank of America downgraded the stock. The Dow opened higher after yesterday’s big jump and gained 200 points before weakness set in sending the Dow to a close of 23,847 down 344 on heavy trading volume. The NASDAQ fell almost 3% on lighter volume. IBD has markets in correction mode while BTS remains in cash as high yield spreads rise.
Ford Motor has teamed up with Alibaba to sell cars in China via a large vending machine! Check the article and attached video out here on our Facebook page. This is cool. It will be interesting to see how this develops and if they will combine it with soda pop, chips and candy bars. You can walk up and get a coke, a Mars Bar and a Mustang!
Shares of Tesla hit a 52 week low as the gurus are not confident the company will hit its Model 3 production target of 2,500 cars per week. Tesla is due to give an update next week and the thinking is that with current production hovering near 975 cars per week they will miss the target and may need to have another capital infusion.
Tech stocks were lower in the wake of a fatal accident involving an Uber self-driving car in Arizona last week. Uber has temporarily suspended self-driving tests on public roads and today chipmaker Nvidia did the same pending investigations. The news sent shares of companies involved in the autonomous driving trend crashing lower. This included Google via its Waymo spinoff. Uber is testing self-driving cars in California, Toronto and Arizona while Nvidia was testing cars in New Jersey and Germany as well as La La Land. Several car companies including Ford, GM, Land Rover, BMW, Fiat, etc are all rushing to get into the autonomous vehicle space like a bunch of Boy Scouts who have just spotted a bag of Oreo cookies at the end of a long hike.