The S&P 500 surged on the first day of the month hitting an all-time high. The Nasdaq was up 1.28% to 12,355 points, the S&P 500 increased 1.13% to 3,662 points and the Dow Jones Industrial Average added 0.63% to 29,823 points.
A bipartisan stimulus package of $908 billion was put forth today to bring some economic relief. Investors have been hopeful for additional stimulus, however, gridlock in Congress could prevent the bill from passing.
S&P 500 debut. Tesla (ticker: TSLA) is set to be included on the S&P 500 on Dec. 21. TSLA’s current market capitalization is $554 billion, which would make it the largest company to be added to the index. Tesla has been cruising through 2020 with the stock up a whopping 600% year to date.
GM drops Nikola, Nikola shares fall. General Motors ( GM) is stepping back from its original deal with Nikola ( NKLA). Both companies signed a memorandum of understanding (MOU) that replaces the September announcement of the “strategic partnership,” where GM would engineer and manufacture Nikola electric vehicles and take an 11% stake in the electric car company.
Nikola has had a tumultuous couple of months with its founder and executive chairman, Trevor Milton, stepping down after fraud allegations around the capabilities of the company’s electric vehicles in September. Nikola ended the day with almost a 15% drop in market value.
Zoom continues to fall. Zoom ( ZM), the leader in video communication services was a stock loser dropping 15% on Tuesday’s market close. The stock started to decline during after-hours following its earnings release yesterday after the bell. Market participants account for the drop to investor concerns on whether the communications company will be able to reach innovation levels according to its market cap despite the many accomplishments ZM has under its belt for 2020. Zoom partnered with other tech leaders like Lumen Technologies ( LUMN) and Formula 1, expanded its reach globally, developed a marketplace for ease of integration. In its latest third-quarter earnings release, ZM reported a record 367% year-over-year increase. For the stock to continue to rally, investors may be seeking value-added services that build off of its existing innovation.
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