Stocks opened higher but then reversed and closed off as politics, weak consumer confidence data and tough trade talk sank stocks. The Dow closed off 142 at 26,807 on heavier trading volume. Techs were hammered and utility stocks were higher. IBD still has markets in rally mode and Dan the Man at BTS continues to give a thumbs up to markets.
Investor’s Business Daily (IBD) posted an article on the status of 5G wireless rollout in the US. In the article Goldman Sachs guru Brett “Funky” Feldman said he expects US wireless carriers to have 5G national coverage mostly in place by mid next year. While Goldman is cautious on the level of consumer demand, they feel that once 5G infrastructure is in place it should lead to increasing benefits for companies that sell 5G related phones and equipment. 5G uses “small cell” radio antennas as well as links to cloud computing infrastructure. The future of 5G lies in its application to the Internet of Things, autonomous driving, drones, remote health care and augmented reality phone apps (whatever those are).
Speaking of autonomous driving, some guy posted a video on Electrek showing a Tesla Model 3 using its “smart summons” feature. See it on our Facebook page. This is cool but shares of Tesla fell today because of a lawsuit over its purchase of SolarCity three years ago. Some shareholders are concerned about the deal because Elon Musk might have been involved in the buyout process even though he had recused himself due to his board seat and share ownership. Tesla continues to inch toward Model 3 production in China plus a newspaper noted that buyers in Australia are gearing up for the countries first shipment of new cars from Tesla. The Chinese EV maker Nio, the so called “Tesla of China” and self-proclaimed “Tesla killer”, saw its shares plummet today after it missed sales targets and posted a huge loss. The company has battled high costs, liquidity issues and a recall due to “fire issues”. It seems that 1 in every 5 Nio’s sold has a tendency to smoke or burst into flames. Nio’s US traded stock was $10 per share 6 months ago when 60 Minutes did a segment on them but now shares trade under $2 and short sellers are jumping on them like hungry bulldogs on the back of a meat wagon.