NIO Boosts Stock Offering as Markets Climb; Virgin Galactic Disappoints
Investors came into the new week on an optimistic note, and their positive views helped boost the stock market. Everyone is pleased to see coronavirus vaccine distribution begin in the U.S. and other areas around the world, and the hope from an investing standpoint is that with the help of some short-term economic assistance from the federal government, the economy will be able to get back on a firm footing in 2021. Just after 11 a.m. EST, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 112 points to 30,158. The S&P 500 (SNPINDEX: ^GSPC) climbed 14 points to 3,678, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) picked up 134 points to 12,512.
Many investors have been interested in electric vehicle company NIO (NYSE: NIO), and as it turned out, those who took the opportunity to buy newly issued shares of the Chinese EV pioneer appear to have paid a bargain price. Meanwhile, Virgin Galactic Holdings (NYSE: SPCE) got bad news from a test flight, sending its shares lower despite the rising market.
Shares of NIO fell 1% late Monday morning, but that was considerably above where the stock had started trading earlier in the day. China's best-known electric vehicle company took advantage of favorable market conditions to boost the size of its secondary stock offering, and those who participated ended up getting a better price than those who waited for the stock to trade on the open market.
Source Fool.com
