During Market hours yesterday — Wednesday (16.12.2020):
- The S&P 500 (Symbol: SPY) rose slightly and closed 0.2% higher on Wednesday amid the Federal Reserve’s latest pledge to support the economy and the apparent progress in U.S. fiscal stimulus negotiations.
- The Nasdaq (Symbol: QQQ) gained 0.5% to end the day, as Apple (Symbol: AAPL) and Microsoft (Symbol: MSFT) each popped more than 2%. The Dow (Symbol: DIA) lagged 0.15%.
- Tilray (Symbol: TLRY) — Shares of Tilray surged more than 20% after the cannabis company and peer Aphria reached an agreement to combine businesses, creating a new giant in the growing industry. The all-stock deal will result in a combined company valued at about $3.9 billion.
- Moderna (Symbol: MRNA) — Moderna shares fell more than 6% after Morgan Stanley downgraded the drugmaker to equal-weight from overweight. The bank cited its elevated valuation after the stock’s 600% rally this year amid high expectations around its coronavirus vaccine.
- Dish Network (Symbol: DISH) — Shares of Dish Network fell more than 7% after announcing the company would raise $2 billion by way of a convertible note offering. Dish said the funds will be used for general corporate purposes and 5G network costs.
- United Airlines (Symbol: UAL) — An analyst at JPMorgan downgraded United Airlines to underweight from overweight, pushing the stock down 3.5%. The analyst cited concerns around the stock’s valuation, noting: “The recent ascent in airline equities has significantly diminished the implied potential upside to several of our Dec 21 price targets, with some having already passed through said targets.”
- Twitter (Symbol: TWTR) — The social media stock gained 3.9% after JPMorgan upgraded it to overweight from neutral and named it a top pick. The firm said it is bullish on the online advertising market in 2021 and that Twitter should be one of the biggest beneficiaries of that sector rebounding.
- Teladoc (Symbol: TDOC) — Shares of the remote health care company shed more than 5% after Business Insider reported that Amazon was working on a business that would provide medical care to workers at major companies. The effort would include providing primary care online, according to the report.
- Chipotle (Symbol: CMG) – Shares of the restaurant chain jumped more than 4% after Stifel upgraded Chipotle to a buy rating. “Chipotle has demonstrated impressive resilience during the pandemic, and we believe the brand should benefit in 2021 from increased consumer mobility and several sales-building initiatives,” the firm said in a note to clients. Stifel also raised its 12-month price target to $1,500 from $1,400.
- Southwest Airlines (Symbol: LUV) — Southwest shares dipped 2.3% after the airline lowered its guidance for December operating revenue. The company expects revenue to fall between 65% and 75% on a year-over-year basis. Southwest had previously forecast a decline ranging between 60% and 65%.
- Spotify (Symbol: SPOT) — Shares of the streaming platform lost more than 2% after Credit Suisse downgraded the stock to neutral from overweight. The Wall Street firm said Spotify’s valuation has expanded and most of the positive factors are priced in the stock.
- GoDaddy (Symbol: GDDY) – Shares of the website builder advanced more than 5% after GoDaddy said it is acquiring payment company Poynt. Under the terms of the agreement, GoDaddy will pay $320 million in cash and $45 million in deferred cash payments subject to certain factors over three years. The deal is expected to close in the first quarter of 2021.
During Premarket hours today – Thursday (17.12.2020):
U.S. weekly jobless claims total 885,000, vs 808,000 expected.
- Accenture (Symbol: ACN) – The consulting firm earned $2.32 per share for its fiscal first quarter, compared to a consensus estimate of $2.05 a share. Revenue beat estimates as well.
- General Mills (Symbol: GIS) – The food producer beat estimates by 9 cents a share, with quarterly earnings of $1.06 per share. Revenue also topped estimates, helped by homebound consumers buying more of its cereal and baking products.
- Rite Aid (Symbol: RAD) – The drugstore operator reported an unexpected profit of 40 cents per share, compared with forecasts of a 5 cents per share loss. Revenue also exceeded estimates.
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