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T3's Take 3: Tesla To Take on Uber?


Today's financial recap and tomorrow's financial outlook.

Today on T3 Live

T3 Live cordially invites you to our first annual Finance Festival, scheduled for November 6-8 in sunny Miami, Florida.

Scott Redler will be speaking about trading and technical analysis, and he'll be joined by a truly impressive team of Wall Street experts, including Barry Ritholz, Nicole Sherrod, Evan Lazarus, Doug Robertson, Josh Brown, JC Parets, and many more.

We've even booked a good old-fashioned bull vs. bear debate between Jeff Saut, Chief Investment Officer of Raymond James, and John Mauldin, founder of Mauldin Economics.

Read about the event here.

World Equity Markets

US markets finished the day up after a choppy day of trading. This morning's Empire State manufacturing data came in at its lowest level since the recession hit, initially triggering a sell off in futures and currencies. The hit was later countered by the NAHB housing market index which was in-line with expectation at the highest level in 9 years, helping to restore investor confidence and drive a modest rally.  The S&P 500 rallied 0.5%, while the NASDAQ finished up 0.9%.

European markets finished higher overall. The French CAC rallied 0.6%, the British FTSE gained 0.2%, while the German DAX fell 0.4%. On Friday, investors were happy to hear that an estimated $95.22 billion in new bailout loans for Greece was approved.

However, several national parliaments now have to vote on the deal. Greece's Athex Composite rallied 1.0%.

Over on the Pacific side, J apan's Nikkei finished up 0.5%, while the Hang Seng dropped 0.7%. The highly watched Shanghai Composite gained 0.7% as the Yuan rose for the third straight day.

Tesla Moves on Uber?

Last month, Tesla (TSLA) got a boost after Uber CEO Travis Kalanick stated that he would buy every Tesla car that was autonomous. This comment sparked questions as to whether or not Tesla would team up with the on-demand taxi service. However, after today many are thinking that Tesla will just take on Uber as a full on competitor.

Morgan Stanley (MS) analyst Adam Jonas believes that will be the case, and this morning he upped his price target for the company from $280 to $465. Jonas claims that Tesla is uniquely positioned to take advantage of the developing autonomous car market, given the company's strengths in vehicle design & engineering, leadership in connected cars, autonomous cars/software expertise, battery/electric powertain expertise, and its proprietary infrastructure network.

Jonas' idea for Tesla's new route came from a Q2 conference call with Tesla CEO Elon Musk. In the call Jonas, asked Musk if Tesla supplying ridesharing firms with cars is a real business opportunity or will the company cut out the middleman and market electric mobility services on its own platform. Musk responded with "I don't think I should answer it [the question]".

Currently the only other analyst price target within that range comes from Stifel analyst James J Albertine, who sees the stock hitting $400.
Tesla shares finished up 4.9% today.

Zulily's $2.4 Billion Liberty Interactive Acquisition

Zulily (ZU) shares turned some heads today after it surged nearly 50% today. QVC owner Liberty Interactive Corp (QVCA) agreed to acquire Zulily for $2.4 billion, a 49% premium from Friday's closing price.

Zulily is a daily flash sales site that sells a variety of items from maternity clothes to bibs to toys. The acquisition of the company will provide QVC with a road to younger clientele and expertise in personalizing offers. The companies generate about $10 billion in combined sales per year and will offer products from over 1000 merchants to 19 million customers.

QVCA finished down 1.5%.

Tuesday's Financial Outlook

US economic data for tomorrow will include July housing starts & building permits.

Overseas economic data will include British CPI, and Japanese merchandise trade.

Dick's Sporting Goods (DKS), Home Depot (HD), TJX (TJX), and Wal-Mart (WMT) will announce earnings before the open tomorrow.
Analog Devices (ADI) will release its earnings report after the close.
No positions in stocks mentioned.
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