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Tesla’s record; Lagarde’s new job; Broadcom eyes Symantec

Posted at 3:33 AM, Jul 03, 2019
and last updated 2019-07-03 07:29:22-04

1. Tesla’s record: Electric automaker Tesla delivered 95,200 cars in its second quarter, a record for the company.

Shares are soaring 7% in premarket trading on the news.

The figure, released Tuesday, met the company’s own goal and easily outpaced the 63,000 cars delivered in the first three months of the year.

It also far surpasses the 40,740 cars delivered to customers in the same quarter one year ago, when Tesla was still struggling to ramp up production of the Model 3, its best-selling car.

The latest release follows the biggest drop in sales in the company’s history last quarter. That had sparked concerns that consumer appetite for its electric vehicles was petering out.

Tesla’s stock had been down more than 30% for the year.

2. Christine Lagarde: Christine Lagarde has been tapped as the next president of the European Central Bank, an appointment that would make her the first woman to lead the powerful institution.

Lagarde, a lawyer by training, has led the International Monetary Fund since 2011. She also served as France’s finance minister during the financial crisis.

“We think her management experience, including time as chairwoman of the IMF, would help her to lead the ECB as an institution,” said Mark Haefele, chief investment officer at UBS Global Wealth Management.

But Lagarde will also “face many challenges along the way,” according to Haefele. Brexit looms, while inflation in the eurozone has remained stubbornly low.

Mario Draghi’s eight-year term wraps up in October. He recently said he was open to boosting monetary stimulus if economic conditions in Europe don’t improve.

Also on the radar: President Donald Trump has put up two new selections for the Federal Reserve failing to advance his previous two picks.

3. Broadcom deal: Reports that chipmaker Broadcom is nearing a $15 billion deal to buy software company Symantec are making waves.

Symantec share are up 18% in premarket trading. Broadcom’s stock, meanwhile, is 4% lower.

The acquisition would follow Broadcom’s failed efforts to acquire fellow chipmaker Qualcomm in 2018. That deal was blocked by Trump, who cited national security concerns.

Broadcom has been on a buying spree since then. It bought another software company, CA Technologies, for $18.9 billion last year.

4. Market moves: US stock futures point higher, signaling the S&P 500 could set a record once again.

The Dow is set to jump 60 points, or 0.2%, when markets open. The Nasdaq could rise 0.4% and the S&P 500 could jump 0.3%, putting it on track to notch an all-time closing high for the third consecutive day.

European markets opened higher, with Germany’s DAX climbing 0.8% and Britain’s FTSE 100 rising 0.6%. Stocks in Asia took a different route. The Shanghai Composite fell 0.9%, while Japan’s Nikkei shed 0.5% and Hong Kong’s Hang Seng dropped 0.3%.

US markets will close at 1 p.m. ET Wednesday. They’re closed Thursday for Independence Day.

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5. Coming this week:
Wednesday — US markets half day; US balance of trade for May
Thursday — US markets closed
Friday — US jobs report