Friday's Big Stock Stories: Key Movers in the Market

On Thursday, the S&P 500 ended its three-day losing streak, largely thanks to a significant increase in Tesla shares. As traders and investors prepare for Friday's trading session, various important stock movements and market trends are on the radar.

Tesla Takes Center Stage

Tesla has captured the attention of traders following a remarkable almost 22% surge in its stock price on Thursday. Currently, Tesla is just 4% shy of its highest value recorded on July 11. Trading volume was exceptionally high, more than three times the average over the past 30 days.

CNBC contributor Jeff Kilburg shared an options strategy for Tesla following its recent Robotaxi demonstration on October 10. He successfully sold his position when the stock reached $255 per share, yielding a remarkable profit of approximately 220% within just two weeks. At one point during Thursday, the stock peaked at $262.12, exceeding its 200-day moving average. Its all-time high stands at $414.50, achieved in the fall of 2021. Notably, Tesla was the most sought-after stock on CNBC.com, surpassing even the popular 10-year Treasury yields in attention.

Cramer Explores Energy Sector

On the financial show "Mad Money," Jim Cramer broadcasted from a Chevron oil rig in the Gulf of Mexico, discussing the energy market's dynamics. He spoke with Chevron's CEO, Mike Wirth, who emphasized the crucial role of energy in the global economy. Wirth warned that any constraints on energy supply, especially those stemming from political actions, could lead to inflationary pressures in the economy. He highlighted that energy is essential for manufacturing and delivery across all sectors.

The energy sector of the S&P is currently 8% below its 52-week high but has gained about 8% year-to-date. Notable performers in this sector include Targa Resources, whose stock has risen 94% this year, followed closely by Williams Companies at 51% and Kinder Morgan at 42%. Conversely, companies like APA, Halliburton, and SLB are struggling, with declines between 20% and 30% this year.

Capri and Tapestry Merger Blocked

A proposed merger between Capri Holdings, known for brands like Versace and Michael Kors, and Tapestry, which owns Coach and Kate Spade, was halted by a judge following a lawsuit from the Federal Trade Commission. As a result, Tapestry's stock surged by 14% in after-hours trading, while Capri’s stock fell nearly 47%.

Restaurant Reports to Watch

Looking ahead, key reports are expected from major restaurant chains like Starbucks and McDonald's, both of which have faced challenges recently. McDonald's stock has dropped almost 5% this week due to E. coli concerns, although it has risen by 19% over the past three months. Meanwhile, Starbucks remains flat this week but has seen a substantial increase of 30% over the past quarter, partly driven by optimism surrounding its new CEO, Brian Niccol, formerly of Chipotle.

Other restaurant stocks under observation include Chipotle, which has gained 15% over three months but is still down 14% from its June peak. Cava has impressively increased by 78% recently, hitting a new high on Thursday, while Sweetgreen's stock is up about 50%, nearing its two-week high. Darden Restaurants, owner of Olive Garden and other brands, has also seen a 16% increase in three months.

Fannie Mae and Freddie Mac Trends

Both Fannie Mae and Freddie Mac stocks have experienced upward movement lately. Speculation surrounds the potential privatization of these companies should former President Trump secure a win in the upcoming election. Fannie Mae has seen a 9.4% increase in just four days and is up roughly 29% for October. In a similar vein, Freddie Mac's stock is up 5.4% this week, totaling an 18% rise during the month.

stocks, market, energy