Stocks fall as record rally cools

Live4 updates

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  Friday, June 14, 2024 at 11:23 a.m. EDT

  Musk doubles Tesla growth after successful shareholder vote

  Tesla CEO Elon Musk, fresh off a major victory in which shareholders reapproved his record pay package, is doubling down on the company's enormous growth potential.

  After Tesla confirmed that 72% of shareholder votes were in favor of a $56 billion compensation package, Musk reiterated his vision for Tesla that goes beyond cars.

  Musk predicts that Tesla's humanoid robot prototype, called Optimus, will surpass the size of the company's automotive business.

  If the price-to-earnings multiple is, say, I don't know, 20 or 25, something like that, that would mean a market cap of $20 trillion for Optimus alone, Musk said at the annual shareholder meeting of the society.

  But Musk's optimism about Tesla's future faces many obstacles. For one thing, even after the majority of voting shareholders supported his pay package, other stakeholders could challenge its legality in the same Delaware court that overturned Elon Musk's pay earlier this year.

  Additionally, Musk has previously threatened to develop AI technology outside of Tesla if he does not have sufficient voting control over the company's decisions.

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  Friday, June 14, 2024 at 10:20 a.m. EDT

  Stock Trends in Morning Trading

  Here are some of the top trend ticker pages from Yahoo Finance during morning trading on Friday.

  Adobe (ADBE): Shares of the software company jumped 15% after the report was released. fiscal second quarter results this exceeded expectations and improved guidance for the year. A more optimistic outlook for sales of its creative products suggests growing adoption of the company's new AI tools.

  GameStop (GME): The meme stock rose nearly 3% Friday morning, riding momentum from the previous session after folk hero retail trader Keith Gill shared a screenshot of an account showing a massive surge in its position on GameStop. The image appeared to show more than 9 million Stoppage of play shares, up from 5 million shares on Monday from a similar screenshot posted by the account on Reddit.

  Shopify (SHOP): Shares of the e-commerce company gained 3% following an analyst upgrade that implied a 16% increase in the stock price. Mark Mahaney, analyst at Evercores ISI Shopify upgraded from In-Line to Outperform after the stock's decline created an entry point for investors.

  Zscaler (ZS): The cloud security company rose nearly 2% following an upgrade from JPMorgan. Analysts said Zscaler is a “next-generation” security company poised for growth, currently trading at a discount. JPMorgan upgraded the stock from neutral to overweight.

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  Friday, June 14, 2024 at 10:09 a.m. EDT

  RH stock plunges after retailer posts bigger-than-expected loss

  RH (RH) stock fell more than 17% Friday morning after the luxury home goods retailer reported a wider-than-expected loss the day before and said it expected Business conditions remain difficult until interest rates ease and the real estate market rebounds.

  RH reported a loss of $0.40 per share, more than analysts' estimates of a loss of $0.09.

  I don't think there will be a lasting inflection in luxury home sales at these interest rates, RH Chairman and CEO Gary Friedman told investors and analysts on the company's conference call. The company's results Thursday, noting that mortgage rates may not fall significantly until next year. year.

  “Housing prices increased by 42% during the two years of COVID, and then they continued to increase over the last two years. …And now you have interest rates of 7% or more when they were 2.6% to 3.3%. “I mean, it’s just a question of affordability now,” the executive added.

  The comments come after the Federal Reserve held interest rates steady this week and indicated it expects only one interest rate cut this year, down from three previously. The Fed does not directly set mortgage rates, but its policy actions impact them.

  The average weekly rate on the 30-year fixed mortgage decreased slightly to 6.95% from 6.99% the previous week, according to Freddie Mac data.

  Learn more: Mortgage rates are around 7%, is it a good time to buy a house?

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  Friday, June 14, 2024 at 9:34 a.m. EDT

  Stocks fall as European markets retreat

  U.S. stocks retreated from all-time highs as investors reacted to nervousness in Europe, where France's upcoming snap elections could bring gains to the country's far-right party.

  The Dow Jones Industrial Average (^DJI) fell about 0.5%, while the S&P 500 (^GSPC) fell 0.3%. The tech-heavy Nasdaq Composite (^IXIC) fell 0.2%.