In the Markets Today
Overall it has been another green week for the major indices as the S&P 500, Dow Jones, and Nasdaq all continue to climb towards all-time high levels despite the ongoing COVID-19 pandemic.
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Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.
2020-08-27 10:03

Overall it has been another green week for the major indices as the S&P 500, Dow Jones, and Nasdaq all continue to climb towards all-time high levels despite the ongoing COVID-19 pandemic. In particular the tech-heavy Nasdaq continued its upwards trajectory towards the 12,000 basis points bench-mark as the index hit its fifth straight positive day on Wednesday and the 39th new all-time high set this year already. Likewise for the S&P 500 which recorded its 18th new all-time high set this year, and has now bounced back off of its lows in late-March by nearly 60%. Finally, the Dow Jones bounced back after a couple of negative days but remains slightly in the red overall so far this year.

The Dow is where we will start as a recent shakeup for the bench-mark index has shown how much times have changed in 2020. The blue-chip Dow used to be the standard by which the American economy was measured but recently the Nasdaq and S&P have taken over. Leaving the Dow in the most recent swap is Exxon Mobil (NYSE:XOM) which has been a staple of the Dow since 1928, Raytheon Technologies (NYSE:RTX), and pharmaceutical giant Pfizer (NYSE:PFE). Taking their places in the Dow will be Honeywell (NYSE:HON), Amgen Inc. (NASDAQ:AMGN), and Salesforce.com (NYSE:CRM). While fundamentally nothing should really change for these stocks, there has been a phenomenon of stocks receiving an initial bump when being added to the Dow as was witnessed when Nike (NYSE:NKE), Visa (NYSE:V), and Goldman Sachs (NYSE:GS) joined the index in 2013. The most recent shakeup comes on the heels of a stock split by tech behemoth Apple (NASDAQ:AAPL) which will affect the price-weighted measure of the Dow due to the lower stock price.

The electric vehicle industry was back in the news as industry leader Tesla (NASDAQ:TSLA) hit another new all-time high closing the trading session at $2,153.17 per share after gaming another 6.42%. The other stock split that is about to take place at the end of August will see Tesla shares diluted 5 for 1, which at current levels would be over $430 per share. China carmaker Nio (NYSE:NIO) continued its surge as well, finally breaking through the $20 price barrier after a Wall Street analyst upgrade earlier in the week. Another Chinese maker is throwing its hat in the ring as upstart company XPeng raised $1.5 billion in a U.S. initial public offering. 

Finally, some more tech news as Facebook (NASDAQ:FB) hit new all-time highs on Wednesday barrelling through the $300 price barrier after more analyst upgrades based on its push into e-Commerce, partnering with stock market darling Shopify (NYSE:SHOP) as well as industry newcomer and Shopify rival BigCommerce (NASDAQ:BIGC). BigCommerce was up over 30% again on Wednesday after a breakout on Tuesday, while Shopify added another 5% on the news. If this relationship continues, look for all three of these companies to be long-term winners with plenty of slices of pie available in the e-Commerce space.


Disclaimer: I am long on General. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2020-08-27 10:03

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About the Author
Mike Sakuraba graduated with double major of English and Economics. Part time writer, part time investor, full time dad. Mike loves writing about technology, sports, and investing.


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