Three numbers to start your day:
S&P 500 Rally Continues
in its history, the S&P 500 has gained at least 10% in six trading days 25 times. It includes the six days through Monday of this week.
The recent rally has had several drivers. First was the conclusion of the U.S. presidential and congressional elections. Although some uncertainty remains about the final tallies, it’s one less thing for investors to worry about.
Another factor was last week’s economic data, which included Friday’s October jobs report. It showed that the economy continues to recover—even if at a slower pace than a few months ago.
The latest leg of the rally came this week, after Pfizer (PFE) announced promising early results from its Covid-19 vaccine trial. Needless to say, an effective vaccine would be a game changer.
Alibaba’s “Singles’ Day” Is Here
The total sales on Alibaba’s (BABA) e-commerce platforms on last year’s so-called “Singles’ Day” was $38.4 billion. It’s like China’s version of Black Friday, but even bigger.
Today is this year’s Singles’ Day, and analysts expect it to break all previous records. Alibaba shareholders are certainly hoping that it will.
The e-commerce giant’s stock dropped 8.3% on Tuesday, alongside those of other Chinese internet giants like JD.com (JD). The decline came after a government agency released a draft of regulations that could lead to antimonopoly measures on online marketplaces.
Alibaba and other internet companies are still among the biggest winners on Chinese markets this year. But the outlook for future rapid gains isn’t as rosy if there is a regulatory threat looming.
Beyond Meat Stock Tumbles 20% Over Past Two Days
The stock first dropped after McDonald’s (MCD) announced that it was getting into the alternative-meat game. The McPlant line of meat alternatives will launch next year, starting with a plant-based burger.
Next came Beyond Meat’s third-quarter results on Monday evening. The company missed Wall Street estimates by a mile. Sales were almost a third below consensus, and Beyond Meat lost money when it was expected to show a profit.
Management blamed the pandemic for the poor performance. Customers stocked up in the second quarter, then ate what they had in the freezer instead of buying new plant-based patties in the third quarter. And many of Beyond Meat’s restaurant clients are still dealing with government restrictions and other challenges.
Whatever the cause, it’s the first big miss for Beyond Meat since going public last year.
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Write to Nicholas Jasinski at firstname.lastname@example.org