Tesla, Airbnb, Walmart, Home Depot, NIO - 5 Things You Must Know Tuesday

Stock futures are mixed as optimism over a coronavirus vaccine fades with the reality the pandemic continues to escalate; Tesla surges on its inclusion in the S&P 500; Walmart and Home Depot report earnings.
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Here are five things you must know for Tuesday, Nov. 17:

1. -- Stock Futures Fluctuate After Record-Setting Vaccine Rally

Stock futures traded mixed Tuesday as optimism over a coronavirus vaccine faded somewhat with the reality that the pandemic continues to escalate in the U.S. and across the globe.

Contracts linked to the Dow Jones Industrial Average fell 199 points, S&P 500 futures were down 19 points and Nasdaq futures rose 29 points.

The Dow and S&P 500 surged to record closing highs Monday after Moderna  (MRNA) - Get Report said its coronavirus vaccine candidate was 94.5% effective in a late-stage clinical trial.

The Dow rose by 470 points, or 1.6%, to 29,950, the S&P 500 rose 1.16% to 3,626.91, and the Nasdaq ended up 0.8%.

The Dow last set a record closing high on Feb. 12, just weeks before the coronavirus began spreading across the country.

That spread has been relentless so far this fall, with cases climbing in every state and hospitalizations from Covid-19, the disease caused by the coronavirus, setting a record high on Monday.

Many states across the country have implemented lockdowns again as they did in early spring to control the spread of the virus. California's indoor businesses were hit with new restrictions, while Iowa issued a limited mask mandate. Oregon, Washington and New Jersey also tightened restrictions. 

Asian shares closed Tuesday's session mixed, while stocks in Europe were lower.

For more on Asian markets read:

Cathay Pacific Axes Flights to Some of World's Busiest Cities, Including New York, London and Washington

2. -- Tesla Surges on Its Addition to the S&P 500

Tesla  (TSLA) - Get Report soared in premarket trading Tuesday following the announcement the electric carmaker will be added to the S&P 500 on Dec. 21. 

The move came after months of speculation that Elon Musk's company would join the major stock index.

Tesla was rising 13.27% to $462.25 on Tuesday.

With a market cap of nearly $390 billion, Tesla will be the biggest company ever to be added to the S&P 500. That size has S&P Dow Jones Indices seeking feedback on whether Tesla will be added to the index all at once or in two different pieces.

Wedbush's Dan Ives said Tesla's inclusion in the S&P 500 "is a major feather in the cap for the Tesla bulls after much agonizing around not getting into the S&P 500 in early September."

But David Trainer, CEO of Nashville-based investment research firm New Constructs, said "S&P is making a big mistake and adding lots of downside risk to the index by including Tesla. I think Tesla's addition to the S&P 500 might be a catalyst for a lot of large investors to dump the stock and take gains."

3. -- Walmart, Home Depot and NIO Report Earnings

Home Depot  (HD) - Get Report reported third-quarter earnings of $3.18 a share, higher than analysts' estimates of $3.05. Revenue of $33.54 billion also beat estimates.

The stock fell 2.35% in premarket trading to $273.

Walmart  (WMT) - Get Report earned $1.34 a share on an adjusted basis in the third quarter, beating Wall Street estimates of $1.18. Revenue of $134.71 billion beat estimates, as did a U.S. same-store sales gain of 6.4% when excluding fuel.

Chinese electric vehicle maker  (NIO ) - Get Reportalso is expected to report earnings Tuesday.

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The economic calendar in the U.S. Tuesday includes Retail Sales for October at 8:30 a.m. ET, Import and Export Prices for October at 8:30 a.m., Industrial Production for October at 9:15 a.m. and the National Association of Home Builders Housing Market Index for November at 10 a.m.

4. -- Airbnb Files to Go Public

Airbnb filed to go public in a widely anticipated move that comes even as the home rental platform struggles amid a renewed pandemic-driven travel slowdown.

The company plans to list on the Nasdaq under symbol "ABNB."

Airbnb, which connects hosts with renters over its online platform, repeatedly cited the impact of Covid-19 in its S-1 filing with the Securities and Exchange Commission.

"Covid-19 has materially adversely affected our recent operating and financial results and is continuing to materially adversely impact our long-term operating and financial results,” the company said in the filing. “However, we believe that as the world recovers from this pandemic, Airbnb will be a vital source of economic empowerment for millions of people.”

In the filing, Airbnb said gross booking value for the nine months ended Sept. 30, dropped 40% from a year earlier to $18 billion.

Airbnb's initial public offering could be one of the biggest of the year. People familiar with the company’s plans told Bloomberg that Airbnb will seek to raise as much as $3 billion in an IPO in December.

5. -- Pfizer Launches Pilot Delivery Program for Covid-19 Vaccine

Pfizer  (PFE) - Get Report launched a pilot delivery program for its experimental Covid-19 vaccine in Rhode Island, Texas, New Mexico and Tennessee as the drugmaker seeks to address distribution challenges posed by the vaccine's ultra-cold storage requirements, Reuters reported.

Pfizer’s vaccine, which was shown to be more than 90% effective in preventing Covid-19 based on initial data, must be shipped and stored at -70 degrees Celsius (minus 94°F).

“We are hopeful that results from this vaccine delivery pilot will serve as the model for other U.S. states and international governments, as they prepare to implement effective Covid-19 vaccine programs,” Pfizer said in a statement.