It is not often that you can say that one issue “saved” or destroyed the markets. However, in Monday’s session, the bulls were bailed out by a Morgan Stanley analyst, who made a bold call that the issue was going to beat earnings on August 23. Along these lines, the issue is a “must buy” ahead of the report.
With the S&P 500 index threatening to breach last week’s low early in the session, the bulls seized on the bold call and the issue blasted higher. The bullish call quickly spread into other chip stocks as well as the rest of the meg cap technology sector.
In the final five minutes of the session, the index tacked on another 8 handles to bring the gain for the day to 25.25 handles at the closing price of 4506.
On the individual equities front, NVIDIA Corporation (NASDAQ: NVDA) reversed its role from Friday and went from being the biggest loser to the biggest winner of the top components. For the session, the issue tacked on $28.98 or 7.1% at the closing price of $437.53.
That performance was well over 6% better than the cash index’s increase of 0.58%.
In contrast, Tesla Inc. (NASDAQ: TSLA) continues its post-earnings swoon and was the biggest loser of the top components of the index. The issue extended its losing streak to three sessions and has been lower in five of its last six sessions. For the session, the issue declined by $2.89 or 1.2%. That marks its lowest close since May 8 at $239.76.