The New York Times - USA (2020-12-01)

B2 N THE NEW YORK TIMES BUSINESSTUESDAY, DECEMBER 1, 2020

Months

36 2510 30

Years

220

240

260

’16 ’18 ’20

400

600

800

1000 thousand

’16 ’18 ’20

80

100

120

’16 ’18 ’20

0

5

10%

’16 ’18 ’20

0

2

4

6

8

$10 a bushel

’12 ’14 ’16 ’18 ’20

0

50

$100 a barrel

’12 ’14 ’16 ’18 ’20

0

1

2

3

4

5

6%

’10 ’15 ’20

90

100

110

120

’15 ’16 ’17 ’18 ’19 ’20

1.0

1.1

$1.2

’15 ’16 ’17 ’18 ’19 ’20

0

1

2

3%

0

1

2

3%

’19 ’20

+1.5

+1.0

+0.5

0.0

–0.5

–1.0

–1.5

–2.0

Information technology %

Health care

Consumer staples

Consumer discretionary

Communication services

Real estate

Materials

Industrials

Utilities

Financials

Energy

+0.7

+0.3

–0.1

–0.7

–0.8

–0.8

–0.9

–1.0

–1.5

–1.9

–5.4

1. Vanguard Total Bond Market Index Adm(VBTLX) +7.4% +4.3% $119.3


2. Dodge & Cox Income(DODIX) +9.1 +5.4 66.5


3. Fidelity US Bond Index(FXNAX) +7.4 +4.3 55.5


4. PIMCO Total Return Instl(PTTRX) +8.3 +4.8 53.0


5. DoubleLine Total Return Bond I(DBLTX) +3.6 +3.4 43.4


6. Fidelity Series Investment Grade Bond(FSIGX) +9.3 +5.3 34.7


7. B a i r d A g g r e g a t e B o n d I n s t ( B A G I X ) + 8. 3 + 4. 9 3 0 .1


8. American Funds Bond Fund of Amer A(ABNDX) +10.4 +4.6 28.5


9. Baird Core Plus Bond Inst(BCOIX) +8.6 +5.3 25.7


10. Vanguard Interm-Term Bond Index Adm(VBILX) +9.2 +5.0 19.7


11. Apple Inc (A APL) $119.05 +2.1% 168.7


12. General Electr (GE) 10.18 –2.1 124.9


13. American Airl (AAL) 14.13 –5.7 97.1


14. Carnival Corp (CCL) 19.98 –7.4 86.4


15. Advanced Micr (AMD) 92.66 +6.3 84.2


16. Ford Motor Co (F) 9.08 –0.1 77.8


17. Pfizer Inc (PFE) 38.31 +2.9 65.0


18. Bank of Ameri (BAC) 28.16 –2.9 63.5


19. Wells Fargo & (WFC) 27.35 –3.9 48.1


20. Intel Corp (INTC) 48.35 +1.9 46.3


21. EOG Resources (EOG) $46.88 –8.8%


22. Pioneer Natur (PXD) 100.58 –8.6


23. Diamondback (FANG) 39.96 –8.2


24. ConocoPhillip (COP) 39.56 –7.5


25. Carnival Corp (CCL) 19.98 –7.4


26. Apache Corp (APA) 12.89 –7.4


27. Te c h n i p F M C P L ( F T I ) 8. 31 –7. 4


28. Concho Resour (CXO) 57.48 –7.3


29. Phillips 66 (PSX) 60.58 –7.1


30. Hess Corp (HES) 47.18 –7.1


31. IHS Markit L (INFO) $99.46 +7.4%


32. Advanced Micr (AMD) 92.66 +6.3


33. Xilinx Inc (XLNX) 145.55 +5.9


34. Qorvo Inc (QRVO) 156.68 +4.4


35. Skyworks Sol (SWKS) 141.17 +3.7


36. Danaher Corp (DHR) 224.63 +3.6


37. Iron Mountain (IRM) 27.50 +3.3


38. Teleflex Inc (TFX) 382.75 +3.2


39. S&P Global I (SPGI) 351.78 +3.0


40. Pfizer Inc (PFE) 38.31 +2.9

+ 5%

0%

• 5%

–10%

3,100

3,200

3,300

3,400

3,500

3,600

3,700

Sept. Oct. Nov.

+ 5%

0%

• 5%

–10%

10,500

11,000

11,500

12,000

12,500

Sept. Oct. Nov.

+ 5%

0%

• 5%

–10%

25,000

26,000

27,000

28,000

29,000

30,000

Sept. Oct. Nov.

3621.63 0.5% 12198.74 0.1% 29638.64 0.9%

Shanghai –0.5%

Tok yo – 0.8%

Frankfurt –0.3%

London –1.6%

Toronto –1.2%

New York –0.5%

$1 = 104.39

$1.1928 Unemployment Rate

New-home sales

Consumer confidence

Industrial production

Long- and intermediate-term

government bonds

S&P 500 Nasdaq Composite Index Dow Jones industrials

Best performers Worst performers Most active

Sector performance

Bonds

Yield curve

Key rates

Borrowing rate

Crude oil

Corn

Savings rate

yen

10-year Treas.

YESTERDAY

1-YE AR AGO

2-year Treas.

Fed Funds

Currencies Consumer rates Commodities Economy

How stock markets fared yesterday in Asia ... ... in Europe ... and in the Americas.

CLOSE

S&P 500 SECTORS

CLOSE CLOSE 1 YR 5 YRS

TOTAL RETURNASSETSTOTAL

CHANGE CHANGE CHANGE IN MIL. IN BIL.

VOLUME

POWERED BY

What Happened in Stock Markets Yesterday

What Is Happening in Other Markets and the Economy

Major stock market indexes

6 p.m. E.T. 8 10 12 a.m. 2 4 6 a.m. 8 10 12 p.m. 2 4 6 p.m.

Maturity

1-year CDs

30-year fixed mortgages

S&P 500 COMPANIES S&P 500 COMPANIES S&P 500 COMPANIES

Source: Morningstar

1 euro =

The Digest

Propelled by progress on corona-

virus vaccines and investor relief

over the end of a noisy presiden-

tial election in the United States,

markets posted one of their big-

gest rallies in years in November.

The S&P 500 notched a gain of

10.8 percent for the month, even

as stocks slipped 0.5 percent on

Monday — the first full day of

trading since the Thanksgiving

holiday. Despite that blip, Novem-

ber was the index’s best monthly

showing since April and its fourth-

best month in 30 years.

On Monday, parts of the stock

market sensitive to the shorter-

term outlook for growth were a

drag as the rapidly expanding

Covid-19 pandemic threatens eco-

nomic activity like consumer

spending and travel. Airlines and

energy companies were some of

the day’s worst performers. Re-

tailers like Gap and the apparel

branding company PVH Corpora-

tion, which owns Calvin Klein and

Tommy Hilfiger, also tumbled af-

ter a lackluster Black Friday, the

traditional start to the holiday

shopping season.

While analysts expect the up-

surge in the virus to slow the econ-

omy over the next few months, the

growing confidence in the arrival

of vaccines should help the keep

downturn modest.

“On the other side of this poten-

tial divot in economic activity,

however, awaits what we believe

will be a powerful cocktail of a vac-

cine, further fiscal stimulus, pent-

up demand for services, and in-

creased consumer confidence as-

sociated with a broad reopening of

the global economy,” Jason De-

Sena Trennert of Strategas Re-

search wrote in a client note on

Monday.

The market’s performance over

the last month has mirrored this

widespread willingness among in-

vestors to mostly look past the na-

tionwide surge of Covid-19 cases.

Pfizer, Astra-Zeneca and Mod-

erna all reported last month that

their vaccine candidates proved

effective at generating immunity

in clinical trials.

The drug makers recorded solid

market gains in November. Pfizer

was about 14 percent higher for

the month. Shares of Moderna — a

far smaller company — more than

doubled, rising 126 percent for No-

vember, including a 20 percent

jump on Monday after the com-

pany said it would ask regulators

in Europe and the United States

for emergency approval of its vac-

cine candidate.

Companies in industries such

as travel and hospitality that have

been battered by virus — and are

relying on a vaccine to restore

their fortunes — were some of

November’s best performers.

Cruise lines and casino compa-

nies also rose during the month:

Carnival climbed more than 40

percent and Wynn Resorts and

MGM Resorts each rose more

than 35 percent.

“There is considerable pent-up

demand for travel, leisure activi-

ties and holidays in the developed

world,” analysts with Capital Eco-

nomics wrote in a note on Monday.

The Russell 2000 index of small

capitalization stocks, which is

more heavily reliant on the out-

look for growth in American do-

mestic economy, rallied more than

18 percent in November.

Analysts say the rally also re-

flects investor relief that the 2020

election season is almost over. De-

spite the unprecedented wave of

litigation from President Trump

seeking to overturn the results of

the vote, President-elect Joseph

R. Biden Jr. is all but assured of be-

ing sworn in as president on Jan.

20.

Mr. Biden’s early personnel an-

nouncements for economic policy

posts have been largely well-re-

ceived on Wall Street. On Monday,

he announced his economic team,

including Janet L. Yellen, the for-

mer Fed chair, as the first woman

to lead the Treasury Department.

Meanwhile, prospects for im-

provement in the global economy

helped lift commodity prices last

month. Shares of energy compa-

nies in the S&P 500 rose more than

25 percent in November alone,

mirroring the more-than 25 per-

cent gain in benchmark American

crude oil prices.

A November for the Record Books

The S& P 500 Index

Position of the S& P 500 index at 1-minute intervals on Monday.

Source: Reuters THE NEW YORK TIMES

3,590

3,640

3,620

3,610

3,600

3,630

10 a.m. Noon 2 p.m. 4 p.m.

Previous close

3,638.35

3-Month Treasury Bills

High rate at weekly auction.

Source: The Bond Buyer THE NEW YORK TIMES

0.08

0.12%

0.11

0.10

0.09

Aug. Sept. Oct. Nov.

0.085%

STOCKS & BONDS

By MATT PHILLIPS

Eshe Nelson contributed reporting.

10-YEAR TREASURY YIELD

0.84%

UNCH.

CRUDE OIL (U.S.)

$45.34

–$0.19

S&P 500 INDEX

–0.46%

3,621.63

DOW JONES INDUSTRIALS

–0.91%

29 ,638.64

NASDAQ COMPOSITE INDEX

–0.06%

12,198.74

GOLD (N.Y.)

$1,775.70

–$6.20

COMPANIES

Salesforce May Buy Slack

As Soon as Tuesday

Salesforce is in talks to acquire
Slack in a deal that could be an-
nounced as soon as Tuesday, ac-
cording to people with knowledge
of the matter who weren’t autho-
rized to talk about the takeover
publicly.
The potential deal is a bet on re-
mote working, an area bankers
believe will be ripe for consolida-
tion in the months ahead, as
highly valued software companies
look to roll up the fragmented
market for collaboration tools.
The premise behind such
moves is that work practices may
never return to pre-pandemic
norms, so Salesforce and others
are hoping to cash in on the shift
by assembling a suite of services
to make remote working easier.
Software companies are riding
high on surging stock prices, sit-
ting on large cash piles and able to
tap more capital easily if they
need to. In addition to Salesforce,
potential buyers include Adobe
(which bought Workfront last
month), Twilio (purchaser of Seg-
ment and Sendgrid) and Serv-
iceNow. Potential targets include
Airtable, Asana, Box, DocuSign,
Dropbox and Smartsheet. These
deals won’t be cheap, but as the

shares of buyers rise in tandem

with targets, that may simply

mean more stock-for-stock deals.

Slack had a market capitaliza-

tion of about $17 billion before The

Wall Street Journal first reported

the talks with Salesforce last

week, and is now worth around

$23 billion.

Representatives for Slack and

Salesforce didn’t respond to re-

quests for comment on Monday.

Looming large in the work-

from-home market is Microsoft.

Its Office software is already in-

stalled on many workplace com-

puters, which makes it easy to in-

tegrate its Slack-like collaboration

tool, Teams. Microsoft has been

acquisitive throughout the pan-

demic, trying to scoop up TikTok

and announcing a deal to buy the

gaming company Zenimax Media.

LAUREN HIRSCH

MARKETS

DoorDash Seeks Valuation

Of $31.6 Billion in I.P.O.

DoorDash is setting its sights high
for its stock market debut.
The food-delivery company
said on Monday that it hoped to
raise up to $2.8 billion from its ini-
tial public offering, in a sale that
could value the company at as
much as $31.6 billion, including all
shares and options. It has set a
price range of $75 to $85 a share
for the I.P.O.
The fund-raising goal, disclosed
in the food-delivery company’s
latest I.P.O. prospectus, signals
the company’s ambitions as it be-
gins pitching prospective invest-
ors. It was valued at $16 billion in a
private fund-raising round in
June.
The company is hoping that in-
vestors will overlook losses and a

thicket of potentially costly labor

regulations and clamor for a piece

of a fast-growing gig-economy gi-

ant.

DoorDash expects to price its

offering in the next few weeks —

making it one of the last compa-

nies to go public in 2020 — and will

trade on the New York Stock un-

der the ticker symbol “DASH.”

Monday’s prospectus also shed

more light on how much control

DoorDash’s founders — and in

particular Tony Xu, its chief exec-

utive — will hold even after the

company goes public, thanks to

their holdings of a special class of

stock, a common feature in Silicon

Valley corporate governance.

Mr. Xu, Andy Fang and Stanley

Tang will control shares that give

them at least 69 percent of voting

power at the company. Moreover,

Mr. Xu has the right to vote the

shares held by his co-founders.

MICHAEL J. DE LA MERCED

BRENDAN McDERMID/REUTERS