Tesla Gets German Approval, and Sears Continues to Fall

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

Stocks fell for the third straight day today, and the Dow Jones Industrial Average (DJINDICES: ^DJI  ) had its worst session in nearly a month as concerns mounted about the Federal Reserve stimulus taper and a disappointing holiday season. The blue chips fell 94 points, or 0.6%, ending the day at 15,915.

With the Fed set to hold its next Open Market Committee meeting in two weeks to determine the future of its $85 billion bond-buying program, investors once again became nervous about the coming taper. Recent jobs numbers have been strong, and Friday's November jobs report should go a long way to determining monetary policy. Another month of strong employment growth could mean the Fed begins cutting the stimulus sooner than expected. Stocks have gained more than 25% this year in large part because of the Fed's bond-buying program, which have made bond yields artificially low, making stocks look better by comparison. Tomorrow's jobs report from ADP will be the first hint at how many new jobs were created in November.

Sales for yesterday's "Cyber Monday," the day online retailers promote for holiday shopping, jumped 16% to $2.29 billion, though shares of Amazon.com (NASDAQ: AMZN  ) , the world's biggest online retailer, fell 2% on news that delivery companies such as UPS are also testing delivery drones, an idea that Amazon.com CEO Jeff Bezos mentioned in an interview on 60 Minutes Sunday night.

Meanwhile, Tesla Motors (NASDAQ: TSLA  ) shares shot up 16% after a German regulatory agency said it didn't find any manufacturer defects in the electric-car maker's Model S Sedan, which had come under scrutiny after three fires were reported in the vehicles in a span of just six weeks. The car is still under investigation by the U.S. National Highway Transportation Safety Board, but the German board's ruling goes a long way to reassuring the public about the vehicle's safety and the market about any serious recall concerns.

Elsewhere in the auto industry, November sales jumped to an annual rate of 16.4 million, up from 15.3 million a year ago, the best figure since February 2007, a strong sign for the overall economy and for carmakers.

Sears Holdings (NASDAQ: SHLD  ) shares continued to fall, dropping 7.7%, continuing a two-day slide of 13% on poor Black Friday results. Sears had been one of the most aggressive Black Friday marketers, as its Kmart stores were open for 41 hours straight.

What to look for in 2014
The market stormed out to huge gains across 2013, leaving investors on the sidelines burned. However, opportunistic investors can still find huge winners. The Motley Fool's chief investment officer has just hand-picked one such opportunity in our new report: "The Motley Fool's Top Stock for 2014." To find out which stock it is and read our in-depth report, simply click here. It's free!

Read/Post Comments (0) | Recommend This Article (1)

Comments from our Foolish Readers

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.

Be the first one to comment on this article.

DocumentId: 2751265, ~/Articles/ArticleHandler.aspx, 4/16/2014 1:43:48 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...