Stocks – Tesla Still Slumping Midday; Utilities, Real Estate Fall


Stocks - Tesla Still Slumping Midday; Utilities, Real Estate Fall – Tesla (NASDAQ:TSLA) remained one of the biggest-losing stocks in midday trading after a brace of executive departures and more troubling behavior from CEO Elon Musk.

Meanwhile, interest-rate sensitive sectors struggled the most after today’s employment report revealed stronger inflation pressure on wages than expected.

Tesla lost about 5% at 11:55 AM ET (15:55 GMT).

Before the bell, the electric car maker announced in a regulatory filing that its chief accountant would be leaving after one month on the job. Shortly after that, its head of HR told Bloomberg she would not be returning from a leave of absence.

This news came after social media was abuzz with video of Musk smoking marijuana (legal in California) and drinking whiskey on a podcast.

Meanwhile, real estate and utilities stocks struggled after the jobs numbers supported the theory that the Federal Reserve will raise interest rates twice before the year is out. Average hourly earnings rose more than expected in August, which will exacerbate Fed worries about the rate of inflation.

The S&P Real Estate Sector index fell about 1%. Real estate stocks tend to struggle when it looks like mortgage rates will climb.

Public Storage (NYSE:PSA) was the weakest component, falling about 2.5%.

The S&P Utility Sector index lost about 8%. Utility stocks traditionally pay high dividends and sell off when their yields erode in a rising rate environment.

Southern Company (NYSE:SO) was the biggest loser, off about 2.5%.


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