S&P takes breather as small caps, transports hit records

Home Depot hiking employee pay and raising company expenses by $1 billion

The major market averages dipped on Tuesday but curbed earlier losses helped by gains in small-cap and transportation stocks which hit fresh records.

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The Dow Jones Industrial Average dropped over 167 points or 0.5%, weighed down by the two Dow retail members Home Depot and Walmart however Boeing gained some momentum as investors speculate its Max 737 jet will be cleared by the FAA to fly again as soon as this week.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES29638.64-271.73-0.91%
HDTHE HOME DEPOT INC.277.41+1.42+0.51%
WMTWALMART INC.152.79+1.19+0.79%
BABOEING COMPANY210.71-5.79-2.67%

Home Depot shares were weaker despite a solid quarter after the home improvement chain noted expenses would rise by $1 billion as it works to bring on more employees.

WALMART SEES CORONAVIRUS BOOST

Walmart reported strong results, beating expectations as e-commerce sales jumped 79%, but signaled the pandemic boost may slow.

The Dow Transports, however, hit a fresh record helped by FedEx and UPS, two economically sensitive names.

TickerSecurityLastChangeChange %
FDXFEDEX CORPORATION286.58-0.83-0.29%
UPSUNITED PARCEL SERVICE INC.171.07+2.18+1.29%
IYTISHARES TRUST TRANSPORTATION AVERAGE ETF219.82-1.96-0.88%

The S&P 500 fell  0.5% but energy stocks saw a slight boost.

TickerSecurityLastChangeChange %
SP500S&P 5003621.63-16.72-0.46%
XLEENERGY SELECT SECTOR SPDR ETF36.76-2.15-5.53%

Tesla was a standout, rallying on word it will be added to the S&P 500 in December, a highly anticipated development for investors and CEO Elon Musk. The Nasdaq Composite still ended lower.

ELON MUSK'S TESLA BEING ADDED TO S&P 500

TickerSecurityLastChangeChange %
TSLATESLA INC.567.60-18.16-3.10%
I:COMPNASDAQ COMPOSITE INDEX12198.737037-7.11-0.06%

DOW, S&P HIT RECORDS ON MODERNA'S COVID-19 VACCINE, TRANSPORTS AND SMALL CAPS FOLLOW SUIT

AMAZON PHARMACY

Amazon said it was getting into the pharmacy business, offering prescriptions, and other healthcare items for free for Prime members. The announcement pressured shares of traditional drugstore chains, such as CVS and Walgreens along with GoodRx.

AMAZON ENTER PHARMACY BUSINESS

TickerSecurityLastChangeChange %
AMZNAMAZON.COM INC.3,168.04-27.30-0.85%
CVSCVS HEALTH CORPORATION67.79-0.08-0.12%
WBAWALGREENS BOOTS ALLIANCE INC.38.01-0.99-2.54%
GDRXGOODRX HLDGS INC37.70-0.50-1.31%

SHAKEUP AT AT&T

AT&T announced that its CFO, John Stephens, would be stepping down in March 2021. He will be succeeded by WarnerMedia CFO Pascal Desroches, effective April 1, 2021.

TickerSecurityLastChangeChange %
TAT&T INC.28.75-0.28-0.96%

“I greatly appreciate John’s [Stephens] outstanding leadership, tireless dedication and many significant contributions to AT&T over the years,” said John Stankey, AT&T CEO, in a statement. “His financial expertise and strong commitment to our investors, employees and customers have been invaluable as we invested to become a leader in connectivity and content. He has helped us maintain the financial strength and flexibility needed to create long-term value for shareowners. While he won’t be retiring until next spring, I want to take this opportunity to wish John and his family all our best in the years ahead.”

ECONOMIC DATA

October retail sales fell short of expectations, rising 0.3% and 0.2%, excluding auto sales. Economists expected a rise of 0.5% and 0.5%, respectively.

Import prices for October came in at -0.1% and rose 0.1%, excluding oil. Export prices rose 0.2% and remained flat, excluding agriculture.

Industrial production for October is expected by economists' to rise 0.9%, while business inventories for September are expected to rise by 0.5%.

The NAHB Housing Market Index continued to show optimism, with a reading for November of 90, above expectations of 85.

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CRUDE DIPS

Crude oil rose on Tuesday to $41.43 a barrel. Gold declined to $1,884.50 an ounce.

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