What's moving markets today: January 22, 2020

By CNN Business

Updated 7:48 p.m. ET, January 22, 2020
7 Posts
Sort byDropdown arrow
12:34 p.m. ET, January 22, 2020

Tesla is now worth more than $100 billion

From CNN Business' Paul R. La Monica

It looks like investors aren't going to pull the plug on Tesla (TSLA) stock anytime soon. Tesla rose nearly 5% Wednesday, pushing its market value to above $100 billion in the process. That makes it the second most valuable auto company in the world.

The latest catalyst? Wedbush analyst Dan Ives boosted his price target on the stock. But Ives is still lukewarm on Tesla's prospects. He kept his "neutral" rating on Tesla. And his new target of $550 is below the stock's current price. Tesla is now trading around $575.

But Tesla's electric surge this year (shares are now up nearly 40% already in 2020) has made it more valuable than nearly every other car maker. Tesla is already worth more than General Motors (GM) and Ford (F) -- combined. And Elon Musk's company now has a bigger market value than Volkswagen (VLKAF).

Tesla is still chasing Toyota (TM) though. The Japanese car giant is worth more than $200 billion. So it may be awhile before Musk, who once boasted that he believes Tesla could one day be worth $1 trillion, can brag about having the most valuable car company on the planet.

10:27 a.m. ET, January 22, 2020

Express is closing 100 stores

From CNN Business' Nathaniel Meyersohn

Shutterstock
Shutterstock

Fashion retailer Express (EXPR) said Wednesday that it will close 100 stores by 2022 as part of a "fleet rationalization plan."

The company also said that it expects sales at stores open for at least a year to fall 3% during its most recent quarter. Express' stock jumped 18% during Wednesday trading.

Express is the latest brick-and-mortar retailer to close stores amid a shift to online shopping. In 2019, more than 9,300 stores closed, including PaylessGymboree and Charlotte Russe.

As of November, Express had 411 primarily mall-based retail stores in the United States and Puerto Rico and 215 outlet stores. 

9:44 a.m. ET, January 22, 2020

Stocks pop on solid earnings from IBM

From CNN Business' Paul R. La Monica

Stocks rallied Wednesday as worries about the coronavirus outbreak in China have started to fade. Netflix (NFLX) fell 2% even though the streaming network leader reported earnings that topped forecasts and higher subscriber numbers than expected. IBM (IBM) is up 4%, making the Dow's biggest gainer, after it reported strong sales and earnings thanks to its cloud unit.

10:50 a.m. ET, January 22, 2020

Billionaire Ray Dalio says 'cash is trash'

From CNN Business' Paul R. La Monica

The head of one of the world's largest hedge funds said at the World Economic Forum that "cash is trash." Ray Dalio, the founder of Bridgewater Associates, made the comments about cash to CNBC from the snowy Swiss town of Davos where the WEF is taking place.

“Everybody is missing out, so everybody wants to get in,” Dalio said, referring to people who have been reluctant to put money in stocks. He urged investors to not sit on the sidelines while the stock market continues to roar to new highs and also advocated for people to have a balanced portfolio that includes safe havens like gold.

But Dalio's comments come at a time when Warren Buffett's Berkshire Hathaway (BRK.B) is sitting on a pile of nearly $130 billion in cash. Buffett has often lamented that he wants to do a big deal but he can't find any bargains.

And Apple (AAPL) has $206 billion in cash on its balance sheet just sitting there earning nearly nothing with interest rates so low. Companies are still hoarding cash even though they are using some for dividends and stock buybacks.

Apple, Google owner Alphabet (GOOGL), Microsoft (MSFT), Amazon (AMZN) and Facebook (FB) have about a half trillion in cash combined. I guess that makes Buffett and Big Tech CEOs garbage collectors.

6:41 a.m. ET, January 22, 2020

US threatens to hike tariffs on UK car exports

From CNN Business' Charles Riley

Treasury Secretary Steven Mnuchin said Wednesday that the United States would consider imposing tariffs on cars made in the United Kingdom if the country moves ahead with a tax on digital services.

Mnuchin said at the World Economic Forum in Davos, Switzerland that the United States regards digital services taxes such as the one imposed by France, and being planned by the United Kingdom and Italy, as being unfair to American tech companies.

Read more here.

6:35 a.m. ET, January 22, 2020

Asian stocks recover from losses sparked by the coronavirus outbreak

From CNN Business' Jill Disis

Stocks in Asia recovered a little ground Wednesday after a new virus originating in China drove markets into the red earlier this week and disrupted plans for the millions of people traveling over the Lunar New Year.

  • China's Shanghai Composite (SHCOMP) was last up 0.4%, reversing earlier losses. The index had fallen more than 1% Wednesday morning.
  • Hong Kong's benchmark Hang Seng Index (HSI) moved up 1.1% after recording its worst day in more than five months.
  • South Korea's Kospi (KOSPI) was up 1.2%.
  • Japan's Nikkei 225 (N225) was 0.6% higher.

Wednesday's gains marked a significant improvement over Tuesday's "sea of red," when stocks in the region were down across the board. That slump came as China confirmed that the new coronavirus can be transmitted between humans.

Read more here.

6:37 a.m. ET, January 22, 2020

Netflix shares rise after mixed earnings

From CNN Business' Frank Palotta

Netflix (NFLX) released its earnings Tuesday, finally giving itself a chance to calm the nerves of jittery investors who are concerned about the rise of rivals.

The streaming giant exceeded its own expectations by reporting fourth quarter earnings showing that it added roughly 8.7 million new subscribers. That is above the 7.6 million that the company was projecting.

It now has 167 million subscribers globally.

The service said it expects to add another 7 million subscribers in the next quarter, which was slightly weaker than what Wall Street was projecting.

Netflix's numbers in the United States and Canada were sluggish at best. The streamer signed up 420,000 new members in those markets, fewer than the 600,000 it projected.

The stock is up more than 1% in premarket trading.

Read more here.