Tesla poised for first day of trading as an S&P 500 member in Christmas week action
The new concerns about the virus comes ahead of an expected vote on a fiscal spending bill that is paired with fresh aid for out-of-work Americans and businesses that have been devastated by the pandemic.
Over the weekend, Senate Majority Leader Mitch McConnell, R-Ky., said a deal had been reached on an almost $900 billion coronavirus relief package and a vote on the bill is set for later Monday.
“Make no mistake about it, this agreement is far from perfect. But it will deliver emergency relief to a nation in the throes of a genuine emergency,” said Senate Democratic Leader Chuck Schumer.
Peter Cardillo, chief market economist at Spartan Capital Securities said that the “markets decline has [nothing] to do with the long-awaited stimulus package agreement struck by lawmakers, but rather the run-away virus situation in Great Britain and Europe’s new travel restrictions.”
Meanwhile, markets are watching the first trading day for Tesla Inc. TSLA, -4.83% as a member of the S&P 500 index, marking one of the largest and, perhaps, volatile members to enter the broad-market index.
Investors saw some second-tier economic data. The Chicago Federal Reserve’s gauge of national economic activity declined to 0.27 in November from 1.01 in October.
Which companies are in focus?
- Shares of Monmouth Real Estate Investment Corp. MNR, 3.83% rose 3% after investment management firm Blackwells Capital LLC said it made an unsolicited bid to buy Monmouth.
- CVS Health Corp. CVS, -1.71% said Monday that it will begin COVID-19 vaccinations at long-term health facilities across the country.
- Tesla Inc. shares were down over 4%.
- HMS Holdings Corp. HMSY, 8.38% gained over 8% after it announced it would be acquired by Gainwell Technologies in a deal valuing the health care services company at about $3.4 billion.
- Lockheed Martin LMT, -1.10% is buying rocket engine manufacturer Aerojet Rocketdyne Holdings for $4.4 billion. Lockheed’s shares were down 2.2%.
- Financial shares were gaining on Monday after the Federal Reserve authorized banks to resume share buybacks next year. JP Morgan Chase JPM, +4.31% was up 2.7% and Bank of America Corp. BAC, +2.44% was up 1.7%.
What are other markets doing?
- In Asia, the Shanghai Composite SHCOMP, +0.76% rose 0.8%, Hong Kong’s Hang Seng Index HSI, -0.72% lost 0.7% and Japan’s Nikkei 225 NIK, -0.18% shed 0.2%.
- In Europe, the Stoxx 600 Europe SXXP, -2.33%, was 2.8% lower, while London’s FTSE 100 stock index UKX, -1.73% slumped 2.1%.
- The 10-year Treasury note yield TMUBMUSD10Y, 0.926% fell 4.8 basis points to 0.900% as investors turned to safe havens. Yields and prices move in opposite directions.
- Oil futures were lower, with the U.S. benchmark CL.1, -4.09% down 3.6% on demand worries.
- Gold futures for February delivery GCG21, -0.19% fell 0.1% as a gauge of the U.S. dollar, the ICE U.S. Dollar Index DXY, 0.30%, rose 0.5% to around 90.421.
This article was originally posted by MarketWatch.