In today’s top stories, IT stocks take the top spots in the S&P 500 Value index, a shareholder trial against Tesla CEO Elon Musk moves forward and electric vehicle maker BYD pauses US expansion. UK house prices are set to fall 10% in 2023 according to Lloyds CEO, and Apple shelves development of its AR glasses.
IT takes record share of S&P 500 value gauge
Tech stocks have led the IT sector to account for 16.8% of the S&P 500 Value index following the value gauge’s rebalancing, up from 10.6% previously, according to the Financial Times. Cisco [CSCO], PayPal [PYPL] and Salesforce [CRM] are just a few that appear in the index. Citi analysts have warned that the S&P 500’s rally this year has pushed the benchmark “dangerously close to the upper end of our fair value range,” reported MarketWatch.
Jury assembled for Tesla trial
The shareholder trial against Elon Musk is under way. Back in 2018, the Tesla [TSLA] CEO tweeted that he had secured enough funding to take the electric vehicle (EV) maker private at $420 per share. The lawsuit claims that his false assertion cheated investors of billions of dollars. A testimony from a senior engineer, verified by Reuters, claims the company faked a 2016 video promoting self-driving. The company’s retail sales are surging in China following price cuts.
BYD cautious on US push
Chinese EV maker BYD [1211.HK] is hitting the brake on its expansion into the US, reported Reuters. “Think about all the US-China political tensions and then think about the craziness of the whole world now. You don't want to jump into a big mess,” a source told the news agency. Morgan Stanley has named Xusheng [603305.SS], which supplies parts to BYD, as a stock set to benefit from cheaper EV models, according to a note seen by CNBC.
UK house prices fall
UK house prices have logged their first decline since October 2021, data from the Office for National Statistics showed on Wednesday. The average price was £295,000 in November, down by £1,000 from the previous month, though still £28,000 higher than a year ago. Lloyds [LLOY.L] CEO Charlie Nunn told CNBC on Tuesday that he anticipates prices “softening about 8% to 10%” in 2023.
Apple’s AR glasses shelved
Apple [AAPL] has indefinitely shelved plans to release standalone AR glasses, with Bloomberg reporting the decision was made due to technical challenges. Instead, it’ll focus on developing cheaper, mixed-reality hardware for immersive experiences. with a view to rivalling Meta Platforms' [META] Meta Quest headsets – the first iteration launching this year will be priced at around $3,000. Apple’s Chinese suppliers have received clearance to expand operations in India, which could help the tech giant “disentangle itself from China”, according to the Financial Times.
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