SpaceX surges, but bigger days are ahead: TD Securities
According to TD Securities, the most important dates for SpaceX have not yet occurred.
Peter Haynes, the firm’s head of indexes and market structure, argues that SpaceX’s IPO is just a small part of a larger development SpaceX timeline
Investors, SpaceX’s S&P Total Market Index, MCI Global Index, Russell Indices and Nasdaq 100 at the beginning of this summer.
“Day 15 [after SpaceX goes public]”What would be July 6 will be the day Nasdaq rebalances the 100 Index to reflect SpaceX’s IPO shares,” he told CNBC’s “ETF Edge” this week ahead of Friday’s IPO. “So from there, we’ll look at when the indexes adjust for additional shares that can be freely traded going forward.”
In what Haynes called a “controversial decision,” the S&P 500 Index Committee announced earlier this month that SpaceX would not be quickly included in the index; That means the Elon Musk rocket maker will have to trade on the market for at least a year until it becomes eligible.
“That leaves us with the other benchmarks and their rebalancing program,” Haynes said.
The decision has greater significance for upcoming index events, as many stocks will be freely traded and will need to be reflected in benchmarks, he said.
SpaceX debuted on Nasdaq at 11:46 a.m. ET on Friday. The stock closed up more than 19% at $160.95; The market value exceeded 2 trillion dollars.
In a private note to CNBC after Friday’s market close, Haynes wrote: “We always assume that the infrastructure that supports the stock trading business works. Today was a test of that infrastructure, and in my view the industry passed the test.”
