Stocks retreat from record highs as DoorDash IPO booms
DoorDash shares surged 78% in their debut trade
U.S. equity markets surrendered their early gains Wednesday as traders digested a setback in COVID-19 relief talks and the strong stock-market debut for food-delivery company DoorDash which may set the tone for future IPOs this year.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SP500 | S&P 500 | 7483.97 | -15.39 | -0.21% |
| I:DJI | DOW JONES AVERAGES | 52334.92 | +15.72 | +0.03% |
| I:COMP | NASDAQ COMPOSITE INDEX | 26041.200966 | -172.52 | -0.66% |
The Dow Jones Industrial Average fell 108 points, or 0.36%, while the S&P 500 slid 0.%8 and the Nasdaq Composite was weaker by 1.94%. The losses came after all three of the major averages hit intraday record highs.
House Speaker Nancy Pelosi rejected the Trump administration’s proposed $916 billion package that would send a $600 check to most Americans, but not include the $300 per week jobless benefit that was included in a bipartisan proposal.
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As lawmakers grapple over the details of a package, the approval of the Pfizer/BioNTech vaccine looms. The inoculation could receive emergency use authorization from the U.S. Food and Drug Administration as early as Thursday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PFE | PFIZER INC. | 23.91 | +0.12 | +0.53% |
| BNTX | BIONTECH SE | 93.91 | +0.86 | +0.92% |
Britain’s national health regulator warned people with serious allergies should not receive the Pfizer/BioNTech COVID-19 immunization after two recipients with a history of allergic reactions reported adverse effects.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAL | AMERICAN AIRLINES GROUP INC. | 18.14 | +0.07 | +0.42% |
| UAL | UNITED AIRLINES HOLDINGS INC. | 135.21 | -0.78 | -0.57% |
Elsewhere, airlines gave the early gains that developed after the Department of Transportation reported a 62% year-over-year drop in passengers in October, making for the smallest decrease since the onset of the pandemic.
DoorDash Inc. opened for trading at $182 per share, up 78% from the $102 where shares priced on Tuesday evening that valued the company at $38.7 billion on a fully-diluted basis. The stock ended the day at $189.51.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DASH | DOORDASH INC. | 188.83 | +4.30 | +2.33% |
Facebook Inc. shares ended off their worst levels of the day after 48 states filed a lawsuit accusing the social media company of engaging in anticompetitive behavior.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| FB | PROSHARES TRUST S&P 500 DYNAMIC BUFFER ETF | 44.35 | +0.06 | +0.14% |
Meanwhile, Zoom Video Communications was downgraded to “neutral” from “overweight” at JPMorgan due to its lofty valuation. The investment bank did however hike its price target by $25 to $450 per share.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ZM | ZOOM COMMUNICATIONS INC. | 90.15 | +3.84 | +4.45% |
| CHWY | CHEWY INC. | 20.67 | +1.01 | +5.14% |
| GME | GAMESTOP CORP. | 22.57 | +0.49 | +2.24% |
Looking at earnings, online pet retailer Chewy Inc. raised its sales outlook for the final quarter of the year after sales surged 45% in the three months ended Nov. 1.
GameStop Corp. reported comparable sales fell 25% as store closures caused by the pandemic and increased demand for digital downloads weighed.
In commodities, West Texas Intermediate crude oil slipped 8 cents to $45.52 per barrel and gold dropped $36.20 to $1,834.60 per ounce.
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European markets ended mixed with Germany’s DAX up 0.47%, Britain’s FTSE ticking up 0.08% and France’s CAC down 0.25%.
In Asia, China’s Shanghai Composite index slid 1.12% after consumer prices in the country fell 0.5% year-over-year in November, making for the first decline in 11 years. Elsewhere, Japan’s Nikkei added 1.33% and Hong Kong’s Hang Seng edged up 0.75%.