US stocks pull back after setting records

By CNN Business

Updated 6:15 p.m. ET, December 9, 2020
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12:24 p.m. ET, December 9, 2020

Tom Siebel-led software firm soars in IPO

From CNN Business' Paul R. La Monica

Sure, food delivery service DoorDash (DASH) is set to skyrocket in its Wall Street debut Wednesday. But the artificial intelligence-powered software company (AI) had a message for DoorDash -- hold my beer. soared more than 140% right out of the gate to above $100 a share after pricing its initial public offering at $42 -- well above its expected range of $36 to $38. raised more than $650 million from the stock sale and is now worth around $9.5 billion.

The company is led by CEO Tom Siebel, a billionaire who sold his software firm Siebel Systems to Oracle (ORCL) in 2005 for nearly $6 billion. is not profitable, but like many other startups it is posting strong gains in revenue. Total sales were up more than 70% in's most recent fiscal year -- and the company generates nearly all of its revenue from recurring subscriptions for its AI-powered business software.

Top customers include French utility Engie (ENGIY), oil services leader Baker Hughes (BKR) and Caterpillar (CAT). also has a big backer -- Microsoft (MSFT). The software giant has agreed to buy a $50 million stake in the company at the IPO price.

IPOs (as well as companies going public through special purpose acquisition companies or SPACs) are in hot demand right now.

The scintillating debut for also comes one day before Airbnb (ABNB) is set to go public. Some unicorns are choosing to directly list their shares too. That's how controversial big data firm Palantir (PLTR) went public.

12:03 p.m. ET, December 9, 2020

DoorDash makes its Wall Street debut

From CNN Business' Sara Ashley O'Brien

Food-delivery giant DoorDash is set to begin trading Wednesday on the New York Stock Exchange, marking the culmination of a year that has seen delivery companies benefit greatly from skyrocketing demand for their services.

DoorDash said Tuesday it priced its stock at $102 per share, raising nearly $3.4 billion in its IPO and valuing the company at about $39 billion -- more than double its last private market valuation.

The pricing was far above DoorDash's original proposed price range of between $75 to $85 a share, in a sign of strong investor demand.

The company, which was launched seven years ago by a group of Stanford students to help businesses in Palo Alto offer delivery, has become a lifeline for many restaurants and merchants across the country. Now, the country's biggest food delivery app is riding the wave of pandemic-fueled demand to Wall Street.

10:57 a.m. ET, December 9, 2020

Stocks are in the red

From CNN Business' Anneken Tappe

The trading day is just a little older than an hour and stocks have already turned negative. All three indexes are in the red, albeit modestly so.

The Dow is 0.1%, or 20 points, lower, while the S&P 500 is flat. The Nasdaq Composite is down 0.1%.

It's hard to stay excited about potential stimulus packages when there is no tangible progress on them and Covid infections continue to rise across the country.

“We’re still all talking, and hoping to get an outcome,” Senate Majority Leader Mitch McConnell said earlier when asked his opinion of Treasury Sec. Steve Mnuchin’s new relief proposal.

Read more about the Whiplash over different stimulus plans on Capitol Hill.

10:24 a.m. ET, December 9, 2020

Job openings ticked up in October, but layoffs increased, too

From CNN Business' Anneken Tappe

America's job opening increased by more than economists had expected in October, a report from the Bureau of Labor Statistics showed this morning.

Job openings stood at nearly 6.7 million in October, more than the 6.3 million expected and up from 6.4 million in September.

But the data included some bad news, too.

Althoughthe number of new hires was little changed, total separations increased to 5.1 million from 4.8 million in September. The number of workers quitting was unchanged at 2.2% but more workers were laid off and discharged the in in the prior month.

The worrying part of the release is that the resurgence of Covid-19 infections didn't happen until November, so the next job openings report might look quite different.

9:32 a.m. ET, December 9, 2020

Stocks open higher

From CNN Business' Anneken Tappe

Wall Street was in the green at the opening bell in New York. Hopes that Congress will pass another round of government stimulus before the holidays is boosting the market.

At the same time, investors are concerned about the worsening spread of Covid-19 that could lead to another shutdown of businesses given various states have already tightened restrictions.

If the S&P and the Nasdaq finish in the green, they will reach fresh record highs.

6:27 a.m. ET, December 9, 2020

US stock futures point to higher open

US stock futures were mostly higher Wednesday morning as investors grew more optimistic that Congress would pass necessary fiscal stimulus to boost the economy as the worsening Covid-19 pandemic threatens to shut down thousands more businesses and put millions more Americans out of work.

  • Dow futures were up 89 points, or 0.29%
  • S&P 500 futures were 0.18% higher
  • Nasdaqfutures fell 0.05%

Stocks rose across the board Tuesday, hitting new records.

6:07 a.m. ET, December 9, 2020

Elon Musk says he moved to Texas

From CNN Business' Rob McLean

Tesla's CEO says he has relocated to the Lone Star State.

Elon Musk revealed his move from California to Texas during The Wall Street Journal's CEO Council annual summit Tuesday.

Musk told the paper's Editor in Chief, Matt Murray, that while "there's a lot of things that are really great about California," he believes the state is taking its success for granted.

The CEO has been hinting at leaving California for a while. Back in May, Musk tweeted that Tesla would "now move its HQ and future programs to Texas/Nevada immediately" after local officials refused to let the company reopen its Fremont factory during the coronavirus pandemic.

Read more here.

6:08 a.m. ET, December 9, 2020

2021 could be a tougher year for stocks

From CNN Business' Paul R. La Monica

If you had said at the start of 2020 that the economy would shut down, the unemployment rate would skyrocket and earnings would plunge due to a highly contagious and lethal virus and we'd still end the year with stocks near all-time highs, people would think you were crazy.

Heading into 2021, investors are optimistic about stimulus from the incoming Joe Biden administration, more help from the Federal Reserve, relief as Covid-19 vaccines are administered to millions and — most hopefully — a return to some kind of normal.

There's no guarantee that this scenario will play out. Stocks have gone up so much this year that all of 2021's good news may be priced in and then some. It could be harder for stocks to keep climbing.

Read more here.

6:05 a.m. ET, December 9, 2020

FTC wants to stop P&G from buying razor startup Billie

From CNN Business' Alicia Wallace

The Federal Trade Commission is continuing its crackdown on consolidation in the razor business.

The FTC on Tuesday announced that it will file a lawsuit to keep Proctor & Gamble (PG), the world's largest consumer goods company, from acquiring Billie, an upstart seller of women's razors and personal care products.

Eight months ago, the antitrust agency made a similar move, suing to stop Schick-owner Edgewell Personal Care (EPC) from absorbing Harry's, a men's razor startup.

Read more here.