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By Swissquote Analysts
Published on 17.11.2021
Morning news

Electric-Car Startup Lucid Overtakes Ford in Market Value

Topic of the day

Lucid Group Inc., in market trading Tuesday, became the latest electric-vehicle startup to rival Ford Motor Co. in market value, another example of how investor enthusiasm is intensifying for car companies that shun gasoline. Stock in Lucid, a maker of high-end electric cars, closed with a gain of 23.7% to a capitalization of more than $89 billion, a day after it reported its first quarterly results since going public. Ford gave up 0.4%, valuing the company at $79 billion. Company executives provided an upbeat outlook for Lucid on an analysts call Monday, highlighting an increase in reservations for its first model, the Lucid Air, and plans to expand its manufacturing output at its factory in Arizona. The Newark, Calif.-based startup reported a net loss of $524 million for the third-quarter, in part due to higher costs associated with starting vehicle production in late September and increasing its employee headcount for sales and service operations. Rivian Automotive Inc., another new electric-vehicle maker focused on trucks and SUVs, went public last week with a market value that quickly overtook Ford's and has since surpassed that of General Motors Co. Valued at about $138 billion in trading Tuesday, Rivian is now roughly on par with German auto-making giant Volkswagen AG. Rivian raised $13.7 billion in all from its offering, a haul that is among the largest for a U.S. public listing. Its stock has continued to rise, climbing more than 91% from the $78 IPO price, as of Monday's close.

Swiss stocks

The SMI gained 0.3 percent to 12,557 points. Among the 20 SMI stocks, there were 16 price gainers and three price losers, with one share closing unchanged. 32.23 (previously: 22.75) million shares were traded. The Swatch share increased in price by 2.1 percent. Participants saw a catch-up movement after the shares of competitor Richemont had benefited from strong corporate figures for two trading days in a row. For Richemont, it was enough for another 0.6 percent on Tuesday. Molecular Partners, a biotechnology company based in Schlieren, Switzerland, said its drug candidate Ensovibep for the treatment of Covid-19 failed to meet thresholds in an ongoing Phase III clinical trial to continue the study with additional patients. The stock plunged by a third. Geberit shares were at the bottom of the SMI share price table, down 2.1 percent. With an annual gain of around 35 percent, however, the share is one of the winners in the leading index. Other cyclicals such as ABB (+1.3%) or Holcim (+0.5%) were also among the stocks in demand on Tuesday. A solid support for the market provided the heavyweights Nestle and Novartis (+0.4% each).

International markets


European stocks mostly rose as the euro fell against the dollar, though the FTSE 100 in London gave up 0.3% as sterling got a boost from speculation about higher U.K. interest rates. The Stoxx Europe 600 index rose 0.3% to 489.8 points. In Paris, the CAC 40 and SBF 120 rose 0.3% each. In Frankfurt, the DAX 40 gained 0.6%. Gaztransport & Technigaz (GTT) jumped 9.8% after Kepler Cheuvreux raised its target price to 100 euros from 70 euros. Faurecia rose 4.3%. The group acquired 79.5% of the German automotive supplier Hella in its takeover bid, and does not intend to launch a bid for the minority shares at this time. Kering (+4.4%) benefited from a recommendation upgrade by HSBC, which moved from "hold" to "buy" on the stock. Bouygues (-1.3%) reported a lower-than-expected current operating income (COI) in construction activities in the third quarter. Diageo (+1.2% in London) unveiled ambitious medium-term targets on Tuesday, according to RBC Capital Markets. The British spirits producer expects to achieve organic growth in operating profit of 6% to 9% for the years 2023 to 2025, as well as organic growth in net sales of 5% to 7%. Shares in Vodafone Group top the FTSE 100 risers, up 4.8% after the mobile-phone operator reported lower first-half pretax profit, but raised its full-year guidance.

United States

U.S. stocks rose Tuesday after a consumer-spending report raised hopes for the holiday-sales season. The S&P 500 rose 18.10 points, or 0.4%, to 4700.90, reversing Monday’s declines and leaving it just short of last week’s closing high. The Dow Jones Industrial Average, which fell three of five days last week, added 54.77 points, or 0.2%, to 36142.22. The technology-focused Nasdaq Composite Index climbed 120.01 points, or 0.8%, to 15973.86. Retail sales rose 1.7% in October, the Commerce Department said, suggesting shoppers weren’t put off by rising inflation. Walmart and Home Depot reported higher sales. Home Depot shares rose $21.25, or 5.7%, to $392.33 after the retailer reported that same-store sales increased in August through October, building on strong growth earlier this year. Walmart shares fell $3.74, or about 2.6%, to $143.17 even though the retailer also reported another quarter of higher sales. Cryptocurrencies retreated, a sign that riskier assets could be losing momentum. Bitcoin briefly fell below $59,000, its lowest price in November. The decline hit crypto-related stocks. Software company MicroStrategy fell $42.98, or 5.4%, to $752.02 and mining company Riot Blockchain fell $5.19, or 12%, to $36.90. Bitcoin wallet provider Coinbase Global slipped $3.24, or 0.9%, to $342.12.


In Asia, major indexes broadly closed with losses. In Tokyo, the Nikkei index is down 0.3 percent to 29,728 points, in Seoul the minus is 0.9 percent. The HSI in Hong Kong is also down slightly, although it had also increased significantly the previous day. In Shanghai, however, the trend is still well maintained. Meanwhile, on the Tokyo stock exchange, participants report price gains of shares from the energy sector, because the government is considering measures such as subsidies to refineries in order to combat the high wholesale prices. Idemitsu Kosan is up 0.9 percent, while Inpex is up 10.5 percent.


The yield on the 10-year U.S. Treasury bond is advancing to 1.634%, up from 1.584% Monday night.


Berenberg increases target Stemmer Imaging to EUR 50 (42) - Buy
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