Closing Bell
The Nasdaq was the lone major U.S. index to fall in trading Wednesday as markets react to the burgeoning trade spat between the U.S. and China.
The Dow Jones Industrial Average gained 0.61%, or 159 points to 26,406, while the S&P 500 gained 0.12%, or 4 points to 2,908. Meanwhile, the Nasdaq fell 0.08%, or 6 points to 7,950.
Tesla to Tap Equity Markets for $2.5 Billion, Morgan Stanley Says
Tesla (TSLA) CEO Elon Musk has repeatedly claimed that the company will not need to raise more capital this year, but analysts at Morgan Stanley are not convinced, according to an analyst note published Wednesday.
The firm believes that Tesla will need to raise $2.5 billion this year to stay afloat as the company struggles to deliver vehicles at the pace it previously expected. Weeks ago, Musk said that he expects Tesla to be cash flow positive in the second half of the year for the first time in its history.
But Morgan Stanley argues the company should raise cash now, we it presumably doesn't need to, then wait until it might need to to act.
"Bulls may say that if Tesla generates enough cash in Stage 1 that it will not need to raise equity. In our view, it is far better for a company to raise when it doesn't need to," Wednesday's note said.
AMD Drops In Spite of Slightly Bullish Morgan Stanley Note
Even though Advanced Micro Devices Inc. (AMD) has fallen steadily over the past five sessions, there is reason to believe in the stock, according to a Morgan Stanley note.
The firm reiterated its "underweight" rating on the chipmaker while also raising its price target to $28 from $11 per share. Analyst Joseph Moore's bullish outlook still suggests a downside for the stock, which was declining 1.5% to $31.45 Wednesday, September 19.
Moore believes that the delay of Intel Corp.'s (INTC) new 10 nm CPU is more disruptive than many in the industry realize, leaving an opening for AMD and rival Taiwan Semiconductor Manufacturing Co. (TSM) an opening in the space.
Intel has delayed the mass production of its latest processor until late 2019 after first saying that the chip would debut at the end of this year. Low volume shipments have already been made, but the company says that mass production will not kick into gear for another year.
Amazon Is Now Third in Digital Ad Revenue
Amazon.com Inc. (AMZN) , the king of disruption, could be ready to take over yet another industry.
U.S. advertisers will spend $4.61 billion on Amazon's platforms this year, making the company the third most popular digital advertising destination behind Facebook Inc. (FB) and Alphabet Inc. (GOOGL) .
Amazon has overtaken Verizon Communication Inc.'s (VZ) Oath for the No. 3 spot in the U.S.
Amazon's share of the digital advertising market will account for 4.1% of all digital ad spending in the U.S., according to industry observer eMarketer. The firm said it expects Amazon to increase ad revenue more than 50% annually through at least 2020 when the company will be the destination for about 7% of the country's digital ad spend.
AutoNation CEO to Leave Company Next Year After 20 Years
AutoNation's (AN) outspoken CEO Mike Jackson will step down from the company in 2019, but will stay on as executive chairman. AutoNation's board will conduct the search for Jackson's replacement.
Jackson has been with AutoNation for 20 years and has been at the helm as the company's stock quadrupled since he took over in 1999.
"I'm very proud of what we've built here," Mr. Jackson said in an interview with the Wall Street Journal. "Next year, I'm 70 years old, and with 20 years as CEO, it's a good time to hand the baton to the next CEO. I'm kicking myself upstairs."
Premarket
U.S. futures are falling ahead of Wednesday's opening bell as world markets ignore the latest round of trade disputes between the U.S. and China, the world's two largest economies.
Dow futures were down 0.02%, Nasdaq futures declined 0.09%, and S&P futures were down 0.09% ahead of the opening bell.
In Asia, the Shanghai Composite gained 1.14%, the Hang Seng jumped 1.19%, and the Nikkei rose 1.08%.
European markets gained also with the FTSE 100 gaining 0.32%, the DAX rising 0.17%, and the CAC 40 rising 0.23%.
