the astonishing rise continued last week, like gifts from Santa’s market. Shares of electric vehicle battery manufacturers closed at $ 131.67, an additional 39% after collecting 29% on Monday. The shares rose by almost 70% in one week, and by 390% since entering the market at the end of November.
On Tuesday, Quantum shares were worth $ 59 billion, based on a fully diluted 448 million pro forma shares. The company has passed rivals, including
in market value. Exception: Chinese
Modern Amperex technology,,
which was worth approximately $ 110 billion. But Quantum was also higher in market value than
all Russell 3000 automatic components except
and the world’s two largest auto parts companies, Japan
Shares fell to a $ 51 billion market mark later in the week.
QuantumScape went public by merging a special acquisition company or SPAC, Kensington Capital Acquisition. GMO Jeremy Grantham invested $ 12.5 million in QuantumScape seven years ago through his foundation, a 4.8 million stake that is now worth $ 551 million. (GMO has confirmed it still owns all the shares.) Grantham doesn’t like SPACs, he told the Financial Times, but the stake “accidentally” turned into the largest investment he has ever made.
What actually drives the action? It is anecdotal that there is not much stock to borrow, which suggests a short squeeze. And electric vehicles and batteries are hot right now. Tesla continues to grow, and Reuters reported
plans to enter the EV market by 2024, with its own battery technology, which could compete with Quantum’s. Or maybe it’s just Santa Claus.
Federal Reserve The Bank of Dallas publishes its research on Texas Texas Outlook production for December. The consensus estimate is for reading 11, similar to November. The index jumped sharply from the record low level set in April and is the highest since the end of 2018.
announces its US National Case-Shiller House Price Index for October. Economists predict an increase of 7% compared to last year, which coincides with the data from September. That figure is the highest for the index since May 2014, as the real estate market remains a bright spot for the economy.
Inventory Management Institute publishes its Chicago Purchasing Manager Index for December. Reading expectations are 56.8, down from 58.2 in November.
Tiffany is holding a virtual special shareholder meeting to vote on the proposed merger with
LVMH Moyot Hennessy Louis Vuitton.
LVMH initially agreed to buy Tiffany in a cash transaction for $ 135 per share 13 months ago, in a $ 16 billion contract. Partly due to pandemic-induced exclusions, a price of $ 131.50 per share was negotiated in October, saving LVMH 430 million.
National Association Realtors released its sales-to-sales index for November. Expectations are level, month by month. The index fell 1% in September and October after recording strong gains in the summer. The index is currently slightly below the all-time high set earlier this August.
hold special shareholders’ meetings to seek approval for their proposed merger of shareholders of all shares, first announced in late September. Under the terms of the agreement, Devon shareholders would own about 57% of the combined entity, which would have a company value of about $ 16 billion.
Census Bureau reports on the international trade balance of goods for November. There is expected to be a deficit of about $ 80 billion, similar to the past four months. The trade deficit in goods reached a record monthly level of 83.9 billion dollars in August.
Mortgage bankers The Association publishes its Composite Market Index, which tracks the volume of mortgage loan applications, for the week ending December 25th. The index has been rising strongly year on year, as the 30-year fixed rate is a full percentage point lower than a year ago, at a recent 2.86%.
Fixed income markets close early at 2:00 PM EST for New Year’s Eve. However, the New York Stock Exchange and Nasdaq maintain regular business hours.
Ministry of Labor reports on initial unemployment claims for the week ending December 26th. Unemployment claims rose in December, averaging 852,000 a week as Covid-19 cases rose in parts of the country. Until December, claims fell every month from April, in November an average of 740,500 per week, compared to the April peak of more than five million per week.
Stock and bond markets they are closed on New Year’s Day.
Write to Al Root at [email protected]