Friday's Market Movers: Key Stocks to Watch

Traders on the floor of the New York Stock Exchange experienced a turn in fortunes on Thursday as the S&P 500 ended its three-day losing streak, largely thanks to a remarkable jump in Tesla shares. As we approach Friday's trading session, several key developments and stocks are capturing attention.

Tesla's Surge

Tesla regained its appeal among investors, with shares soaring nearly 22% on Thursday. The stock is currently only 4% shy of its high from July 11. Notably, trading volume was exceptionally high, exceeding the 30-day average by more than three times. CNBC contributor Jeff Kilburg highlighted an options strategy for Tesla following the Robotaxi demonstration earlier this month. He successfully sold a position on Thursday at $255 a share, securing a profit of about 220% in two weeks. At one point, Tesla stock peaked at $262.12, surpassing its 200-day moving average, with a lifetime high of $414.50 recorded in late 2021. On Thursday, it was the most searched stock on CNBC.com, even outpacing interest in the 10-year Treasury.

Cramer's Energy Insights

During an episode of CNBC's "Mad Money," Jim Cramer broadcasted live from a Chevron-operated rig in the Gulf of Mexico. He discussed the critical role energy plays in the global economy, emphasizing that constraints on energy supply, especially due to political actions, could trigger inflationary pressures. Chevron's stock is currently 10% below its April high and is flat year to date, while the S&P Energy sector stands 8% from its 52-week peak, having gained approximately 8% in 2024 to date. Targa Resources leads the sector with a stunning 94% increase this year, followed by Williams Companies up 51%, and Kinder Morgan with a 42% gain, all nearing their highs. However, companies like APA, Halliburton, and SLB are struggling, down between 20% and 30% this year.

Capri and Tapestry Developments

A proposed retail deal between Capri Holdings, which owns brands like Versace and Michael Kors, and Tapestry was blocked by a judge following a lawsuit from the Federal Trade Commission. The outcome led to a sharp 14% rise in Tapestry's shares after hours, while Capri's stock plummeted by 47%.

Restaurant Sector Outlook

As the restaurant sector navigates a challenging landscape, upcoming earnings reports from major players like Starbucks and McDonald's are on the watchlist. McDonald's has seen its stock drop nearly 5% this week due to E. coli concerns, although it has improved by 19% over the past three months. Conversely, Starbucks remains flat this week but has gained 30% in the last three months, bolstered by optimism surrounding its new CEO, Brian Niccol, a former leader at Chipotle. Other notable restaurants include Chipotle, which is up 15% over three months yet remains 14% lower than its June peak, Cava with a remarkable 78% increase, and Sweetgreen up about 50% over the same period. Darden Restaurants has risen 16%, approaching its March high, while Bloomin' Brands has faced challenges with a 15% decline over three months.

Fannie Mae and Freddie Mac Stocks

Both Fannie Mae and Freddie Mac stocks have seen upward movements recently, partly fueled by speculation that a potential victory for former President Trump in the upcoming election could lead to their privatization. Fannie Mae's stock has climbed approximately 9.4% over four days and has risen roughly 29% in October. Meanwhile, Freddie Mac is up 5.4% this week, achieving an 18% increase this month.

Stocks, Market, Tesla