The S&P 500 managed to eke out another record-closing high on Wednesday as investors remained cautiously optimistic about the prospects for a second major stimulus bill.
It looks as if the starting point will be a $908 billion bill, not the $2.4 trillion bill passed by the Democrat-controlled House of Representatives. Either way, there is bipartisan support — and popular support from the people — for a new round of stimulus as the pandemic continues to worsen before it gets better.
The Dow Jones Industrial Average rose 59 points, or 0.2%, to finish at 29,883.
Snowflake revenue more than doubles. In a sign of just how high expectations were, shares of data warehousing company Snowflake (ticker: SNOW), which was the biggest tech initial public offering of 2020, slid after reporting its first quarterly results as a public company.
This decline — shares were down about 4% in after-hours trading — came despite 119% year-over-year growth in revenue. The company still isn’t profitable, but for high-growth, cloud-based software companies like Snowflake, Wall Street usually only sees that as a temporary setback.
Musk warns employees on TSLA stock. Tesla ( TSLA) CEO Elon Musk, in a letter to employees, warned that the high-flying electric vehicle stock could “get crushed like a soufflé under a sledgehammer” if costs aren’t controlled at the soon-to-be S&P 500 member.
Musk occasionally issues dire warnings like this and occasionally even opines on Tesla stock being overvalued. Anybody who’d kept Musk’s past warnings in mind would’ve missed out on some pretty incredible gains in 2020, a year in which the stock is up nearly 580%.
Tesla shares fell 2.7% on Wednesday.
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