Stock futures slip a day after the Dow and S&P 500 close at records

Dow Jones Industrial average and S&P 500 futures declined on Tuesday morning after the two major market benchmarks closed at record levels. Dow futures fell 168 points, or 0.5%. The move implied an opening loss of about 160 points. S&P 500 futures slid 0.5%. Nasdaq 100 futures were higher by 0.1%.

Tesla shares jumped more than 12% in premarket trading after S&P Dow Jones Indices said the electric car maker would join the S&P 500 index, effective Dec. 21. It was a long anticipated move for the surging stock. Before Monday, the shares had already more than quadrupled this year.

Home Depot fell after its earnings report Monday morning even after saying sales surged 24% last quarter. Walmart shares gained 2% in premarket trading after earnings topped expectations on soaring e-commerce sales. On Monday, the Dow and S&P 500 posted all-time closing highs. The Dow also notched an intraday record. Those gains came after Moderna released trial data showing its coronavirus vaccine was more than 94% effective, further raising expectations of a sharp economic recovery.

That marked the second positive announcement related to a coronavirus vaccine in a week. Pfizer and BioNTech said Nov. 9 that their Covid-19 vaccine candidate was more than 90% effective among participants in a late-stage trial.

Value stocks led the advance on Monday, building on their strong gains from last week. The iShares Russell 1000 Value ETF (IWD) jumped 1.9%, while its growth counterpart closed higher by just 0.5%.

The recent outperformance in value stocks comes even as the number of coronavirus cases continues to increase, dampening the country’s near-term economic outlook. More than 1 million cases were confirmed in less than a week in the U.S., bring the country’s total to more than 11 million, according to data from Johns Hopkins University. Data from The Covid Tracking Project also showed U.S. coronavirus-related hospitalizations have risen to nearly 70,000.

Stock futures slip a day after the Dow and S&P 500 close at records, CNBC, Nov 17