Unlike the previous Friday, the last day of this workweek looks relatively tame as many traders are less worried about an immediate interest rate hike.
Among the stocks Wall Street is focusing on today are Avis Budget Group Inc. (NASDAQ:CAR), Deutsche Bank AG (USA) (NYSE:DB), Apple Inc. (NASDAQ:AAPL), Marvell Technology Group Ltd. (NASDAQ:MRVL), and Tesla Motors Inc (NASDAQ:TSLA). Let’s take a closer look at the latest developments involving these companies and assess the smart money sentiment towards them.
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Avis Budget Group Inc. (NASDAQ:CAR) is trending today after the company announced it will replace Questar Corp in the S&P MidCap 400 index after the end of trading on Friday. Due to the index inclusion, some mutual funds/institutions will likely have to buy Avis Budget shares as part of their mandate. However, whether the anticipated buying has already been priced into Avis’ price is another question. Shares of the company have retreated 3.33% year-to-date and trade for 10 times forward earnings as some investors remain concerned about sector pricing. Seth Klarman’s Baupost Group established a new stake in Avis Budget Group Inc. (NASDAQ:CAR) of over 1.7 million shares during the second quarter.
Deutsche Bank AG (USA) (NYSE:DB)’s shares are in the red after the Wall Street Journal reported that the Justice Department had proposed the bank to pay a $14 billion fine to settle various mortgage-securities cases related to the financial crisis. The proposed Justice Department fine is multiples of what many investors previously expected (of around $2-$3 billion). Understandably, Deutsche Bank has refused to play ball, responding that “Deutsche Bank has no intent to settle these potential civil claims anywhere near the number cited.” Not many investors from our database were bullish on Deutsche Bank AG (USA) (NYSE:DB) in the second quarter, as only 15 reported a stake as of the end of June.
On the next page, we examine Apple, Marvell Technology Group Ltd, and Tesla Motors.