Tale of the Tape
Good evening, everyone. Welcome back to the market of stocks.
All major indexes closed red last week, displaying relative weakness on both Thursday and Friday.
We’ll get earnings from Tencent Music on Monday. GameStop reports Tuesday and Winnebago on Wednesday. See the earnings calendar below.
Powell will testify Tuesday and Wednesday before Congressional committees accompanied by Treasury Secretary Janet Yellen.
Crypto traded quietly. Bitcoin and Ethereum tightened up below all-time highs on below-average volume. Are breakouts imminent? Time will tell.
And last week’s changes:
| S&P 500 | 3,913 | -0.77% |
| Nasdaq | 13,215 | -0.79% |
| Russell 2000 | 2,287 | -2.77% |
| Dow Jones | 32,627 | -0.46% |
Here’s the weekly S&P 500 chart:
USMCA Railway 🛤
Canadian Pacific Railway and Kansas City Southern announced today the two railways will merge.
$CP will purchase $KSU stock and cash for approximately $29 billion. Common shareholders of $KSU will receive 0.489 of a $CP share and $90 in cash for each $KSU common share held.
The two railroads will combine to create the first rail network connecting the U.S., Mexico, and Canada.🎊 The combined networks will expand market reach for customers and employ ~ 20,000 people while generating total revenues of $8.7 billion.
Keith Creel, CEO of Canadian Pacific said:
This transaction will be transformative for North America, providing significant positive impacts for our respective employees, customers, communities, and shareholders. This will create the first U.S.-Mexico-Canada railroad, bringing together two railroads that have been keenly focused on providing quality service to their customers to unlock the full potential of their networks. CP and KCS have been the two best performing Class 1 railroads for the past three years on a revenue growth basis.
Tesla to the Moon? 🌙
On Friday, Cathie Wood’s Ark Investments released a $3k price target on Tesla by 2025. Ambitious, right?
With $TSLA trading at a current price of $654, Elon’s company would be worth ~ $3 trillion, based on the number of shares outstanding.
Ark predicts a 50% chance that Tesla will achieve fully autonomous driving within the next 5 years. A fully autonomous fleet of cars may allow Tesla to expand its planned robotaxi service.
As stated by Ark’s new model, Tesla could reach $4,000 by 2025 in the best case, and $1,500 in the bear case. Ark projects Tesla’s unit sales to be between 5 million and 10 million vehicles in 2025, assuming increased capital efficiency.
The $3,000 target is much higher than any analyst who covers the company, the next highest target is $1,200…
Is Cathie’s price projection overly optimistic or will Tesla reach $3k? Place your bets…
Sunday Links:
💰Join IBD Digital and get top-quality trade ideas at the push of a button!*
❓ Gilded Age or Roaring Twenties? — Investor Amnesia
🏀 2021 March Madness: Complete schedule, dates, TV times
🤝 NFL, media take a leap of faith with long-term media rights deal
😭 How Crying on TikTok Sells Books
📚 The Feynman Learning Technique
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The Week Ahead
And now a brief and well-organized look ahead at the trading week beginning Monday, March 22nd, 2021:
Economic Calendar:
3/23 New Home Sales (10 AM ET)
3/25 Initial Claims (8:30 AM ET)
3/26 Personal Income (8:30 AM ET)
3/26 Personal Spending (8:30 AM ET)
Here’s the full Economic Calendar provided by Briefing.
Earnings Calendar:
Be sure to know when your stocks are reporting. Here’s the earnings calendar:
