Dow Futures Rise as Tesla Goes Battery Shopping

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

According to stock index futures as of 8 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI  ) will open a bit higher this morning, rising by 28 points at the opening bell. Beginning today, the government shutdown has at least one direct impact on investors: Our understanding of the performance of the economy is declining.

The Department of Labor's closely watched Employment Situation report, which was expected to show about 180,000 jobs were created in September, was not released this morning and will not be published until the shutdown ends.

European exchanges traded higher, and Asian markets fell slightly overnight as the standoff over funding the U.S. government entered its fourth day.

With those broader trends in mind, here are a few individual stock stories to watch for in today's market.

Tesla Motors (NASDAQ: TSLA  ) is back in the news, but for good reasons this time. Reuters reported this morning that Tesla is close to securing a second supplier for its lithium-ion batteries. The potential deal with Samsung would be a win for Tesla as it looks to diversify its supply chain and prepare for the addition of new car models beyond the Model S line that it produces right now. Its shares have had a rough week, falling by 9%. Still, that dip isn't much of a hit to long-term Tesla investors, as it puts the stock at roughly where it was late last month. Shares are up 1.4% in premarket trading.

Microsoft's (NASDAQ: MSFT  ) Steve Ballmer didn't get the gold star this year. The company's board of directors awarded him a $550,000 bonus -- just 79% of his annual target. In explaining the shortfall, the board pointed to the 18% income drop at Microsoft's Windows division and the "slower than anticipated sales of Surface RT" tablets. Microsoft stock is unchanged in premarket trading.

Finally, Amazon.com (NASDAQ: AMZN  ) is making plans to sell its own TV-mounted streaming-video device. According to The Wall Street Journal, the new set-top box might be ready in time for Amazon to ship during the holiday shopping season this year. The online retailer could use the box to promote its profitable Prime membership service. However, as in tablets and its rumored smartphone ambitions, Amazon would be going up against strong, well-established competitors in the streaming-video hardware space. Amazon's stock is slightly higher in premarket trading.

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Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On October 04, 2013, at 9:57 AM, Grumpycat wrote:

    laptop/ cell phone batteries in cars is not a good idea, there will be more fires.

  • Report this Comment On October 04, 2013, at 11:41 AM, EmFetch267 wrote:

    Can't short it, can't buy it. TSLA proves whats wrong with the market today -- too many sheep, no standard in valuation, and lowering cost barriers.

  • Report this Comment On October 04, 2013, at 2:04 PM, jetamerica wrote:

    I have had no problems shorting TSLA at Fidelity. Added to my short position at $192. I have been investing since 1973 and rarely short. A company with a nice product that is hugely over-valued

    Fully expect sub-$100 as logic prevails and people study the arithmetic-and a stock price of $50-100 assumes they perform flawlessly in the next four years and are able to produce and sell at least 500,000 vehicles through a worldwide distribution system. That assumption is that they can increase sales 25 fold.

    They are a one trick pony and adding a second battery supplier is meaningless news.

    Check the TSLA website. To quote it, no Recent Media Coverage since May 9, 2013.

    http://www.teslamotors.com/about/press/press-mentions

  • Report this Comment On October 04, 2013, at 4:31 PM, Teetoooo wrote:

    @jetamerica

    Sounds like another bitter investor who didn't get in at the bottom. Lol at your bitterness.

    Elon Musk makes Steve Jobs look like child's play. This is a long-term hold. If you don't see it...well I don't care what you do actually. I'll just keep raking it in.

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