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Tesla's rally Gives SP 500 a boost on tuesday

Tesla’s Surge Sends S&P 500 to a New High, The UK Begins to See COVID-19 Cases Decline & Facebook’s Stock Reacts to Q3 Earnings

Tesla rally sends S&P 500 to new high

A surge in Tesla shares on Monday, pushed the benchmark S&P 500 to new highs, as markets also prepped for more Q3 earnings calls.

Earlier in today’s session, it was confirmed that car rental giant Hertz, made an order of 100,000 vehicles from the Elon Musk founded company.

In a statement regarding the move, Hertz stated that, “Electric vehicles are now mainstream, and we’ve only just begun to see rising global demand and interest”.

💡 Tesla’s Impact in the S&P 500
Its not news that Tesla’s share price has affected the S&P 500 in the past, this is because of the valuation of the company. Tesla is worth about as much as the entire energy sector, Exxon, Chevron and the whole club. Tesla accounted for about 1.7% of the index value (even with its 20% discount for float-weighting). It weighed in at about 13% of its sector – Consumer Discretionary.

Tesla was so big when it first joined the S&P 500 index that the normal small-scale effects that occur when a new company joins an index were magnified to an unprecedented degree. It exposed the indexing machinery clanking and grinding away behind the curtain.

The company’s interim CEO Mark Fields added that. “The new Hertz is going to lead the way as a mobility company, starting with the largest EV rental fleet in North America and a commitment to grow our EV fleet and provide the best rental and recharging experience for leisure and business customers around the world”.

$TSLA shares were up close to 9.5% as of writing.

FTSE 100 rises, as UK COVID-19 cases decline

In the United Kingdom, London’s FTSE 100 started this week trading higher, as data released showed that COVID-19 cases had declined.

Figures from the Office for National Statistics reported that coronavirus related infections were down 19% from the week prior.

The data showed that there were 36,567 new cases of COVID-19 today, with 38 deaths.

💡 Will the UK see a ‘normal’ Christmas?
Health Secretary Javid says there is no need for further Covid restrictions “at this point” and he believes the UK will have “a normal Christmas”

But Sage scientist Prof John Edmunds told the BBC it is hard to be “precise” about what the situation will be at Christmas

Despite this, the FTSE 100 closed the session 0.25% higher, with GBPUSD climbing to an intraday high of 1.3791.

Markets continue to remain focused on the upcoming Bank of England rate decision, for a potential rate hike.

Facebook stock higher prior to Q3 earnings call

Shares in Facebook were trading higher on Monday, as markets anticipated the release of the company’s latest earnings.

The company will announce its Q3 earnings after today’s closing bell, with the expectation that earnings will come in at$3.17 per share on revenue of $29.59 billion.

Facebook has been in the headlines for claims made by whistle-blower Frances Haugen, who today testified in front of the British parliament.

💡 Facebook looking to the future
Facebook has invested heavily in virtual reality (VR)and augmented reality (AR), including buying companies like Oculus, this year created a product team to work on the metaverse. This month, it said it plans to hire 10,000 employees in Europe over the next five years to work on this initiative.

This comes as facebook’s ad business slowed down

Haugen today stated that, “Facebook has been unwilling to accept even a little sliver of profit being sacrificed for safety”.

Despite this, shares in $FB were trading 0.37% higher.

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– George Soros

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