Apple Cut by Needham; Tesla Dips on Shipments; Wells Fargo Asset Cap Lifted

On this episode of Stock Movers:
- Apple (APPL) shares fell in premarket trading after Needham & Co cut its recommendation on the iPhone maker to hold from buy. Analyst Laura Martin downgraded the stock on near-term threats to revenue and EPS growth. "For this stock to work, it must have the catalyst of an iPhone replacement cycle, which we do not foresee in the next 12 months,” Martin wrote.
- Tesla (TSLA) is also lower this morning as vehicle shipments from its China factory fell for an eighth straight month, extending a global sales slump as Chief Executive Officer Elon Musk pledges to renew his focus on the automaker. The EV maker shipped 61,662 Model 3 sedans and Model Y sport utility vehicles from its Shanghai plant in May, down 15% from the same time last year, according to preliminary data from China’s Passenger Car Association. The group didn’t provide a breakdown of domestic sales and exports.
- Wells Fargo (WSC) shares are higher this morning as the bank was released from a Federal Reserve asset cap that has restricted its size for over seven years. The Fed said Wells Fargo met all conditions required by an enforcement action imposed on the bank in 2018 to remove the restriction. The removal of the cap marks a major win for CEO Charlie Scharf and allows the bank to pursue growth again, with plans to increase returns and growth in a deliberate manner.

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