Stocks Today: 11.17.2020 – stock market update

Nov. 17, 2020

Good evening everyone! Welcome to a new episode of “Stocks Today”, explaining what forces moved the stocks in the U.S. equity market today (Tuesday, 17 November 2020).

S&P 500, Dow Jones and Nasdaq closed the day with a slight loss.

In particular, the S&P 500 fell 0,48%, closing at 3.609,56.

The Nasdaq lost 0,21%, closing at 11.899,34.

Whereas the Dow Jones also closed negative (down 0,56%), the Russell 2000 continued its record rally closing at 1.789,41 (up 0,23%) recovering pre-market expectations for small-cap stocks.

Why did the stock market move?

The reason for a similar move is to be found in a rebounce from the euphoria that guided the markets yesterday, following the announcement of an early stage vaccine from Moderna. Furthermore, a record number of hospitalizations from Covid-19 was reached in the United States. While cases rise higher, local authorities are imposing new restrictions.

Stocks of the day

In such context, the day experience two important facts: one concerning Tesla and the other concerning Walmart.

Tesla will be added to the S&P 500 index on December, 21 of this year! The announcement represents a wonderful Christmas present for Tesla and for its enterprising investors. The company that Tesla will be replacing inside the index, still has to be announced. As for today Tesla would directly enter the top 10 companies by market capitalization of the entire index!

As a consequence of this announcement, Tesla’s stock jumped more than 8% today reaching $ 441,61.

As to the second fact of the day, Walmart released its quarterly earnings. Earnings per share of $1.34 were announced, beating the expectations of §1.18. Furthermore, revenues also beat expectations by $2.5 billion and e-commerce sales where 79% higher in the third quarter.

Nevertheless, Walmart’s stock underperformed today closing down 2%. The reason for this downwards trend is to be found in a slower quarterly sales rise in comparison to the pace that characterized the company’s sales earlier in the coronavirus pandemic.

That’s all for this Tuesday’s stock market update. Stay tuned to receive your daily update!