Stocks were higher on Monday amid strong employment reports and other data indicating an improving economy.
Katharine Ross and Jim Kramer of TheStreet discussed the latest news on the stock market. Kramer talked about the sharp rise in Tesla share price, GameStop’s proposed sell-off and job report data released last week.
Tesla: Buy or Sell?
Tesla Stock (TSLA) – Get a report rose Monday after the green car maker beat Wall Street forecasts and delivered 184,800 new vehicles in the three months ended March.
Wedbush analyst Dan Ives said the first-quarter results saw Tesla surpass 850,000 deliveries in a year, more than 70% more than last year’s record of 499,500 vehicles. He raised his target price for the share to $ 1,000 per share.
Kramer said investors should buy Tesla, but also cautioned them against blindly investing in lesser-known EV stocks or companies that make EV parts in the hopes of finding some kind of Tesla derivative. “Stop looking for derivatives; just buy a Tesla! ” – said Kramer.
GameStop: Buy or Sell?
GameStop (GME) – Get a report The company’s shares fell sharply in trading on Monday after the video game retailer said it plans to sell up to 3.5 million common shares.
Kramer said GameStop is gaining traction in the gaming industry as the economy reopens and everyone is vaccinated. “You can play against each other in a giant gambling hall and they do so much, but they need some capital and they don’t really harm the stock, they do it in the market, so it’s absurd that the stock fell so much.”
The US economy created 916,000 new jobs last month, higher than a forecast of 675,000, according to Labor Department data released Friday, as the US labor market rebounded sharply amid accelerated vaccine introduction.
Kramer said a job report released last Friday showed that many people were hired, but there was no pay rise to speak of. “There was negative wages, which is a green light for Federal Reserve Chairman Jerome Powell to stay calm. It is now true that there is commodity inflation throughout the system, which Powell noted when he talked about keeping interest rates low. so don’t panic. “
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