Stocks traded higher Wednesday after consumer prices in the U.S. during February rose less than expected, easing investors' worries about inflation.
TheStreet's Katherine Ross and Jeff Marks discussed breaking news in the stock market. Marks spoke about Tesla's battery plans, stocks to pick in cybersecurity and markets on Wednesday.
Tesla: Buy Or Sell?
Tesla's (TSLA) - Get Tesla Inc Report Elon Musk is looking to get into the Texas power market, with previously unrevealed construction of a gigantic battery connected to the state’s ailing electric grid that nearly collapsed last month in the wake of winter storms and the record cold temperatures.
A Tesla subsidiary registered as Gambit Energy Storage LLC is quietly building a more than 100-megawatt energy storage project in Angleton, Texas
Marks said no one is going to question Tesla's leadership in EVs and batteries. "But from a valuation perspective, I still have a hard time wrapping my finger around this one. And that's why we like Ford (F) - Get Ford Motor Company Report in the EVs and the auto space for Action Alerts PLUS. It's our largest position in the entire portfolio because we were aggressively buying this one into weakness in December."
Cybersecurity Stock Picks
A group of hackers said they viewed live and archived surveillance footage from hundreds of businesses including Tesla and Cloudflare (NET) - Get Cloudflare Inc Class A Report by gaining administrative access to Silicon Valley startup Verkada, according to reports.
Marks said a hack like this is an example of how businesses cannot skimp out on their cybersecurity budgets. "Cybersecurity and digitization are probably the two most important investments in IT spending. My picks for the cybersecurity play would be CrowdStrike (CRWD) - Get CrowdStrike Holdings, Inc. Class A Report and Palo Alto Networks (PANW) - Get Palo Alto Networks, Inc. Report."
Markets on Wednesday
Marks said I'm still not sold that this rotation into the cyclical value names is quite over yet. "You can still try and continue to pick spots in some of the higher-quality tech names or the market share leaders in tech. Ones with good profit, good outlook, a stock that is dependable, that has not been beaten down, for example, Salesforce (CRM) - Get salesforce.com, inc. Report."
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