Nasdaq hits record as Tesla does the same, while energy stocks drag on S&P
Boeing was a bright spot on a favorable call from UBS
BMO Capital Markets Chief Investments strategist Brian Belski discusses the impact of stimulus relief on the markets and how the S&P 500 is shaping up for unprecedented earnings growth in 2021.
U.S. equity markets finished mixed Monday as investors waited on the details of a proposed $908 billion COVID-19 stimulus package.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:COMP | NASDAQ COMPOSITE INDEX | 19107.65077 | -123.07 | -0.64% |
| TSLA | TESLA INC. | 311.18 | -19.06 | -5.77% |
The Nasdaq Composite captured another record, adding 0.45%, helped by Tesla Inc. which reached another new milestone: a market cap of $608 billion, joining only a handful of companies in the club.
Still, economically-sensitive stocks were under pressure as the Dow Jones Industrial Average closed down 149 points, or 0.49%, with JPMorgan Chase & Co. shares among the laggards.
The S&P 500 ended lower by 0.19% as energy stocks dropped alongside oil prices. West Texas Intermediate crude oil slid 50 cents to $45.76 per barrel.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 43750.86 | -207.33 | -0.47% |
| JPM | JPMORGAN CHASE & CO. | 241.87 | +0.71 | +0.29% |
| SP500 | S&P 500 | 5949.17 | -36.21 | -0.60% |
| XLE | ENERGY SELECT SECTOR SPDR ETF | 94.87 | +0.36 | +0.38% |
More details of the bipartisan aid package that has been backed by House Speaker Nancy Pelosi and Senate Minority Leader Chuck Schumer are expected to be released Monday. Senate Majority Leader Mitch McConnell has said he supports a $500 billion deal.
Pelosi said on Saturday that she expects a deal to be reached by Christmas.
EUPHORIC STOCK MARKET RUNS RISK OF BUZZ-KILL WITHOUT COVID-19 HELP
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BA | THE BOEING CO. | 138.14 | -1.83 | -1.31% |
Looking at stocks, Boeing Co. was upgraded to “buy” at UBS amid optimism the planemaker can ramp up 737 Max production in a “supply constrained world post-2021/2222.” The Zurich-based investment bank also raised its price target to $300 per share, up from $150.
Looking at deals, Cisco Systems agreed to buy London-based cloud communications software provider IMImobile plc in a $730 million deal, including debt.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CSCO | CISCO SYSTEMS INC. | 57.92 | -1.26 | -2.13% |
Meanwhile, Eastman Kodak Co. shares surged 60% after The Wall Street Journal reported a federal agency found no wrongdoing in regards to a federal loan that helped the company pivot its business into the manufacturing of drug ingredients.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| KODK | EASTMAN KODAK CO. | 4.55 | -0.03 | -0.65% |
Investors were also prepping for what is expected to be a busy week for initial public offerings with DoorDash and Airbnb on the docket.
IPO FEVER HEATS UP
Monday morning, Airbnb raised its offering price to $60 per share, putting the company on track to receive a valuation as high as $42 billion. DoorDash boosted its offering last week.