Tech Gains and CarMax Earnings Fall | December 22 | Eagle Nest

The $900 billion stimulus bill passed, with $8 billion in aid for vaccine distribution. Direct payments will go out to Americans as soon as next week.

Industrials

Fears of the new strain in the UK have made their way over to the US, lowering travel-related stocks. Delta Air Lines is down about 3%.

Tech

Recent news about Apple entering the electric vehicle market contributed to big gains, because the Apple car would be competition for Tesla. Apple was up about 3% and Tesla fell 1%.

Other

Peloton reached a $420 million deal to buy Precor, an equipment manufacturer, because PTON wants to increase its presence in manufacturing. PTON was up 12% after the deal was reached.

Earnings

CarMax (KMX) beat estimates with an EPS of $1.42 and revenue of $5.18 billion. However, investors were expecting more from the company, since digital competitors, like Carvana, have experienced excess growth of 40% in the same period. CarMax was down 8%, since it did not offer any guidance due to coronavirus uncertainties.