Equities Market: US Indexes push higher on elections enthusiasm

US major stock markets moved in green territory yesterday performing an impressive upward run, as investors make moves to take advantage of the ground lost in the previous week. More analytically, the S&P500 gained +1.78% and closed at 3,369.16, the DJ Industrial gained +2.06% closing the session at 27,480.03 and the Nasdaq100 surged by +1.76% to reach 11,279.91 for the day. The Dow Jones was mostly supported by the financial sector with big banks like Goldman Sachs and JPMorgan Chase gaining +4.06% and +3.15% correspondingly. On the other hand, Nasdaq100 was supported by industrial stocks and in our opinion, Tesla stands out with a +5.84% upward move.

Today we will be looking into some of the major stock movers yesterday and what could be behind their moves. 

Let’s start with Tesla Inc. which moved higher and closed at $423.90 per share yesterday. On a year to date basis, Tesla is up by the staggering +406.66% not leaving much room for doubters to make a case whether its electric cars are attractive or not. Moreover, Tesla’s Cyber truck regained the headlines in the past days, as according to Yahoo Finance, the electric car manufacturer could be announcing changes to its design. The Cyber truck is scheduled to be released in 2021, yet Tesla has already a pre-order of hundreds of thousands according to various sources with possibly more to come. 

On a separate note, during its latest earnings results released in late October, Tesla reported $0.76 EPS for the quarter, beating forecasts of $0.22 by $0.54. Due to the fact that Tesla designs, develops, manufactures, leases, and sells electric vehicles, and energy systems worldwide, including the United States, China and Europe it receives lots of attention and investors seem willing to find out whether this company will dominate the pre-mentioned sectors in the next five years. Numbers confirm this is the case so far.

 Coca-Cola was also among the stocks that followed the general trend yesterday and moved higher gaining +1.50% and closed the normal trading session at $49.35. However, Coca-Cola’s move was backed by 3Q results which sent a rather optimistic message to existing but also potential investors. During the 3Q of the current year net sales increased by 4.5% compared to the same period in 2019. According to J. Frank Harrison III, Chairman and Chief Executive Officer of the company, the results are seen so far in 2020 relate to profit and cash flow being better than initially forecasted with the figures blending with tightly managed operating expenses. Yet, we cannot ignore the fact that on a year to date basis, Coca-Cola’s stock price is down -10.84% affected by the pandemic outbreak. Investors may want to see further improvement of the pre-mentioned figure in order to display more confidence in the company,