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Tesla Bull Sells (and Buys Again?) & Dow Rallies Near Highs | Free Lunch

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On today’s episode of Free Lunch, Associate Stock Strategist Ryan McQueeney highlights the Dow’s rally toward all-time highs on the back of strength from financial stocks. He also touches on news related to marijuana producers and reported activist interest in casino giant MGM.

Later, the host calls Brian Bolan, a noted Tesla bull, to discuss a major shift in his sentiment for the electric car company.

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Free Lunch is the newest show from Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Facebook Live, Twitter, Ustream, and more.

U.S. stocks were mixed on Wednesday morning, with the tech-heavy Nasdaq dipping and the Dow rallying toward all-time highs. The Dow’s latest rally comes as Chinese retaliation to the White House’s latest round of tariffs fell below the worst fears of investors.

Stocks were also lifted by strength in the financial sector. The benchmark 10-year U.S. Treasury yield hit a four-month high during morning hours, likely spurring some bullishness in the space. The S&P Financial sector was more than 1% higher as shares of bank giants like JPMorgan (JPM - Free Report) ticked higher.

Meanwhile, Canadian marijuana stocks were surging once again, just one day after Tilray (TLRY - Free Report) added nearly 30% in one session on the back of its approval to import pot to the U.S for medical research. Canada is nearing its nationwide recreational legalization date on October 17, and the excitement surrounding Tilray is spilling over into other companies like Canopy Growth (CGC - Free Report) and Cronos Group (CRON - Free Report) .

Investors on Wednesday morning were also noticing a slight rally in casino stocks. This industry has suffered from weakness in Vegas and Macau recently, but The New York Post today reported that Starboard Value has taken a sizeable stake in MGM Resorts (MGM - Free Report) , possibly suggesting that activist firms still have hope for the casino giants.

On the first half of today’s show, Ryan recaps these stories and provide his own perspective on the news.

Later, the host is joined by Brian Bolan, Zacks’ growth guru and an outspoken proponent of Tesla (TSLA - Free Report) . Bolan has appeared on Free Lunch in the past to speak highly of Tesla and Elon Musk, but something changed yesterday after reports suggested the CEO is under criminal investigation for his go-private tweets.

Bolan actually sold his long position shortly after the news broke, initiating what he calls a “shoot first, ask questions later” move. But, as he explains on today’s show, Bolan quickly decided to get back in a long position via calls after considering that the reports were, well, just reports.

Overall, Bolan has a lot of thoughts on the legitimacy and severity of the reported probes surrounding Tesla, and he thinks that the market is now discounting the leadership of Musk. Make sure to check out the show to hear his full thoughts!

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