Stockhouse @ the Bell: Stocks pull back as Tesla (TSLA) closes at record high (T.BB) climbs

Stockhouse Editorial
0 Comments| February 25, 2014

Today in the markets
U.S. stocks were negative Tuesday, as the S&P 500 pulled back from Monday’s near record close as home prices took a dip and a consumer confidence index dropped more than expected.

Canadian stocks were lower amid concerns about China's economy depressed commodity prices and resource stocks while two major banks posted solid earnings reports.

The S&P/TSX Composite Index was off 38.10 points at 14,188.98, while the TSX Venture Exchange edged down 8.21 points to close at 1,010.74.

Active stocks included Tesla Motors Inc. (NASDAQ: TSLA, Stock Forum), which surged 14% to $248 after a Wall Street analyst told investors that Tesla could shake up the electric utility sector as well as the auto industry.  In earlier trading, the stock reached a record high of $259.20.

Analyst Adam Jonas of Morgan Stanley wrote in a note to investors that Tesla could nearly double its share of the global car market by 2028. And it also could create another lucrative business by building battery packs for energy storage. He doubled his target price for Tesla stock to $320 per share from $153.

In Canada, shares of two major banks rallied on the back of solid earnings.

Bank of Montreal (TSX: T.BMO, Stock Forum) had $1.06 billion or $1.58 of net income in the first quarter, up two per cent from a year earlier and five cents higher than forecast. Adjusted net income was $1.08 billion or $1.61 a share, which was also ahead of estimates.

National Bank's (TSX: T.NA, Stock Forum) quarterly net income totalled $405 million or $1.15 per diluted share, up from $373 million or $1.05 per share in the same 2013 period. Ex-items, earnings were $384 million or $1.09 per share, well above expectations of $1.05 per share.

Bank of Montreal was up 0.08% to $72.63 while National Bank inched up 1.4% to $44.23.

BlackBerry (TSX: T.BBStock Forum) continued to benefit from a report from Bloomberg that automaker Ford Motor Co.  (NYSE: FStock Forum) will base its next-generation Sync system on the smartphone maker's QNX and no longer use Microsoft Corp.'s (NASDAQ: MSFTStock Forum) Windows.

Its shares ran up 8% to $11.73 on top of a gain of almost seven per cent on Monday.

Tim Hortons Inc. (TSX:T.THI, Stock Forum) sees significant room for growth in its core Canadian business and plans to add 500 locations in this country and 300 in the United States by 2018.

The restaurant and coffee chain called the plan ``ambitious but achievable'' and said Tuesday it will allow the company to adapt to changing consumer needs and fight for a spot in a highly competitive market. The stock rose 0.78% to 45 cents.

Agrium Inc. (TSX: T.AGU, Stock Forum) shares gained 0.37% to $101.16 after the company unveiled plans for a US$720 million expansion of a Texas nitrogen plant.

 The expansion project will add a new urea production unit of approximately 610,000 tonnes, of which 100,000 tonnes will be diesel emission fuel grade urea, the company said in a press release.

For news about small stocks that made big moves in Tuesday’s trading, please read the
Stockhouse Canadian Small and Micro-cap Stock Report


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