HomeTechStock market news live updates: S&P 500 and Dow end lower but...

Stock market news live updates: S&P 500 and Dow end lower but tech stocks outperform as Europe's COVID struggles rattle markets – Yahoo Finance

Stocks ended Friday's session weighed by growing concerns over nationwide COVID-19 lockdowns in Europe that raised fears about new restrictions beyond the continent, which pressured blue chip stocks, oil and the broader market.
The Dow slid 200 points, or 0.6%, settling at its lowest levels in 3 weeks and down1% on the week, while the S&P 500 notched a slim daily gain. However, the Nasdaq Composite set a fresh record, bolstered by rallying technology shares. 
Markets were unsettled after the Austrian government announced a full lockdown starting on Monday, in response to cases of COVID-19 surging in Europe. The lockdown will include both those vaccinated and unvaccinated, it will last for 10 days minimum, but could be extended for 10 days further.
"The news is hitting European markets hard this morning as fears mount that the virus and restrictions will spread across the continent again," said Jim Reid, chief economist at Deutsche Bank, adding that "the curveball might be the U.S." given lower rates of vaccination domestically than in Europe.
"So although all the headlines are in Europe at the moment, will the U.S. be more vulnerable than many European countries over the course of the full winter? Recent history suggests the U.S. have a higher bar for economic restrictions related to covid but it also has a lower vaccination rate than their European peers," he added.
The Nasdaq was boosted by stocks associated with "stay at home" trades that characterized much of 2020 — giving a fleeting lift to stocks like Zoom (ZM), Netflix (NFLX) and Amazon (AMZN). Apple (AAPL), meanwhile, set a record high during the session.
Rivian (RIVN) — the new darling of the electric vehicle set — stumbled on a report that Ford (F) was walking away from a plan to jointly develop an EV with the carmaker. 
Treasury yields, which have jumped in response to rising inflation fears, retreated early Friday as investors flocked to safe-haven assets. Brent crude (CL=F) sank by over 3%, reflecting jitters that lockdowns will curb energy demand, en route to its worst week in a year.
"Just like with the [strategic patroleum reserve] headlines on Wednesday, we estimate that this move lower has far overshot the actual fundamental risks due to low trading volumes," Goldman Sachs said on Friday.
Separately, cannabis stocks extended a five-day losing streak, as national legalization efforts in the U.S. seemed to falter. In recent sessions, investors have become skeptical about the regulatory change making it legal under the current administration. 
The largest fund tracking the pot industry, ETFMG Alternative Harvest ETF (MJ) tumbled to its lowest price since last year and is down 60% from its high in February. But U.S. pot stocks are also lagging behind: Shares of Horizons US Marijuana Index ETF (HMUS) slid 12% this week and 54% since its 52-week high in February.   
Meanwhile, shares of air carriers Delta Air Lines (DAL), United Airlines (UAL) and American Airlines (AAL), and cruise liners Carnival Corp (CCL) and Norwegian Cruise Line (NCLH) all shed at least 1% on the day, as Europe's COVID-19 struggles revived fears about travel and leisure.
And with the holiday season approaching and cold weather driving more people to meet indoors, public health officials are hoping to mitigate another COVID wave of cases this winter. The FDA on Friday authorized boosters of the Pfizer/BioNTech (PFE, BNTX) and Moderna (MRNA) COVID-19 vaccines for all adults. Additionally, CDC's advisory panel unanimously voted to recommend Pfizer (PFE) and Moderna (MRNA) booster shots for anyone 18 and older. 
The U.S House of Representatives on early Friday passed President Joe Biden's $1.75 trillion bill, however the legislation will be sent to the Senate where negotiations will continue. The bill lays out the Administration’s plans on education, healthcare and the climate.
"The Build Back Better Act, which was passed by the House today, would provide only a small boost to economic growth next year," Andrew Hunter, Senior U.S. Economist at Capital Economics, wrote in a note.
"With the economy already running up against capacity constraints and any supply-side benefits of the plan likely to take time to feed through, there is a risk that it exacerbates rather than eases the economy’s near-term inflation problems," he added.
Also in focus for the markets is Biden’s Federal Reserve chair nomination. Biden told reporters on Tuesday to expect the announcement of a nominee for Fed chair in "the next four days." 
The White House has not indicated which way it is leaning, but market participants see two leading options: the reappointment of current chair Jerome Powell, or the elevation of Fed Governor Lael Brainard. White House Press Secretary Jen Psaki said Friday that she expects there will be more to report early next week. 
"The market so far is believing that it will be Powell again, but any sort of a change would mean that they want to hear a reiteration of the monetary policy and forward expectations," Sonali Pier, Pimco's Managing Director and Portfolio Manager, told Yahoo Finance Live on Thursday.
"[That means] tapering, being at a pace of about $10 billion in treasuries, $5 billion in agency MBS, then thereafter seeing rate hikes but not a significant shift to be more hawkish," Pier added.
Here's where markets were trading closed on Friday:
S&P 500 (^GSPC): -6.01 (-0.13%) to 4,698.53
Dow (^DJI): -264.33 (-0.74%) to 35,606.62
Nasdaq (^IXIC): +63.73 (+0.40%) to 16,057.44
Crude (CL=F): -$2.90 (-3.67%) to $76.11 a barrel
Gold (GC=F): -$12.40 (-0.67%) to $1,849.00 per ounce
10-year Treasury (^TNX): -0.4bps to yield 1.539%
Crude is Friday's biggest loser, trading under $77 per barrel as Europe's struggles with COVID stoke speculation that global demand could take a hit. Even with concerns about China's economy, however, Goldman Sachs thinks the selloff isn't justified by fundamentals:
Just like with the [strategic patroleum reserve] headlines on Wednesday, we estimate that this move lower has far overshot the actual fundamental risks due to low trading volumes…We therefore view the move as excessive, especially as the oil market remains in a large deficit, and reiterate our $85/bbl 4Q21 average forecast.
The stock market has been on autopilot in November, and it's not without rhyme or reason, said Rick Rieder, BlackRock's global fixed income CIO. Even with economic headwinds, stocks still have more upside, he said.
"I don't think equity valuations are that high when you look at free cash flow yields," Rieder told Yahoo Finance Live.
Here's where markets were trading midday on Friday:
S&P 500 (^GSPC): +8.730 (+0.18%) to 4,714.09
Dow (^DJI): -318.12 (-0.39%) to 35,732.83
Nasdaq (^IXIC): +109.71 (+0.67%) to 16,101.90
Crude (CL=F): -$3.01 (-3.81%) to $76.00 a barrel
Gold (GC=F): -$12.50 (-0.67%) to $1,848.90 per ounce
10-year Treasury (^TNX): -0.4bps to yield 1.543%
9:30 a.m. ET: Stocks mixed, tech leads Nasdaq higher
Here's where markets were trading shortly after market open on Friday:
S&P 500 (^GSPC): -6.33 (-0.13%) to 4,698.21
Dow (^DJI): -214.78 (-0.60%) to 35,656.17
Nasdaq (^IXIC): +39.95 (+0.28%) to 16038.10
Crude (CL=F): -$1.51 (-1.91%) to $77.50 a barrel
Gold (GC=F): -$4.20 (-0.23%) to $1,857.20 per ounce
10-year Treasury (^TNX): unchanged to yield 1.6040%
7:30 a.m. ET Friday: Stock futures poised for mixed start
Here's where markets were trading Friday morning:
S&P 500 futures (ES=F): -11.75 points (+0.25%), to 4,689.75
Dow futures (YM=F): -194 points (-0.54%), to 35,619.00
Nasdaq futures (NQ=F): +54.75 points (+0.33%) to 16,536.00
Crude (CL=F): -$2.65 (-3.35%) to $76.36 a barrel
Gold (GC=F): +$1.90 (+0.10%) to $1,863.30 per ounce
10-year Treasury (^TNX): -0.5 bps to yield 1.529%

6:28 p.m. ET Thursday: Stock futures open higher
Here's where markets were trading Thursday evening:
S&P 500 futures (ES=F): +0.5 points (+0.11%), to 4,706.50
Dow futures (YM=F): and +33 points (+0.09%), to 35,844.00
Nasdaq futures (NQ=F): +22 points (+0.13%) to 16,503.50
High-growth but richly valued tech stocks have been getting hammered by the market as of late, and software cybersecurity disruptor Zscaler (NASDAQ: ZS) hasn't been exempt. As for the specific plunge today (Zscaler is up 36% in 2021 with just weeks to go until the new year), analyst Stephen Bersey at Daiwa Capital downgraded Zscaler to underperform and stuck a $286 price target on the stock. A slew of other Wall Street prognosticators waxed optimistic on Zscaler last week after the company said revenue grew 62% year over year in the last quarter, and deferred revenue (sales collected from customers, but for which service has not yet been provided) boomed 74% higher.
Shares of the COVID-19 vaccine makers Pfizer (NYSE: PFE), Ocugen (NASDAQ: OCGN), and Vaxart (NASDAQ: VXRT) are all moving in the wrong direction today. Specifically, Pfizer's stock is down by approximately 4%, Ocugen's equity is in the red by 5.64%, and Vaxart's shares are underwater by a hefty 8.7%, as of 12:23 p.m. ET Monday afternoon. On Sunday, the White House's chief medical advisor, Dr. Anthony Fauci, said that the preliminary data regarding the severity of the omicron variant was "encouraging."
For the past 12 years, investing in growth stocks has been a moneymaking strategy. Historically low lending rates and an accommodative Federal Reserve have allowed fast-paced companies to thrive. Back in 2013, J.P. Morgan Asset Management, a division of JPMorgan Chase, released a report that compared to performance of publicly traded companies that initiated and paid a dividend between 1972 and 2012 to stocks that didn't pay a dividend over the same period.
In a matter of weeks, many growth stocks have gone from hot to cold over fears of an economic slowdown, the omicron COVID-19 variant, and valuation concerns. Lucid Group (NASDAQ: LCID) and Nio (NYSE: NIO) are two very different electric vehicle (EV) companies that are looking to make names for themselves on the global stage. Let's determine if now is the right time to buy Lucid and Nio, or if investors should run for the exits.
What happened Shares of DocuSign (NASDAQ: DOCU) got shredded on Friday, but got taped back together on Monday — to an extent. As of 11:35 a.m. ET, shares of the e-signature service are up 7% from Friday's close.
Lucid (LCID) shares opened 12% lower on Monday after the high-end electric vehicle startup revealed it received a subpoena from the Securities and Exchange Commission (SEC) over its recent tie-up with a special purpose acquisition company.
Yahoo Finance Live hosts break down Lucid's shares dropping after the SEC subpoenas the EV manufacturer regarding its shell company merger.
Many growth stocks took a hit in the recent weeks, and SoFi Technologies, Inc. (NASDAQ: SOFI) has not been spared, as it dipped over 35%. As the stock reaches toward the yearly lows, we'll look into the current state of the ownership and reflect on the recent moves made by the insiders and institutions.
The Wall Street giant really likes these dividend stocks — for very good reasons.
Davis Funds, an investment management firm, published its “Davis Opportunity Fund” third quarter 2021 investor letter – a copy of which can be downloaded here. In the year-to-date period through July 31, Davis Opportunity Fund returned 23.32%, outperforming the S&P 1500 Index’s 18.07% return. You can take a look at the fund’s top 5 holdings […]
Rising quarterly payouts and above-average yields make these dividend stocks worthy of your immediate attention.
Harding Loevner, an investment management firm, published its “Global Equity Fund” third-quarter 2021 investor letter – a copy of which can be downloaded here. A return of -1.31% was recorded by the fund for the third quarter of 2021, trailing its Benchmark, the MSCI World Index, which returned 0.09% for the same period. You can […]
These two under-the-radar metaverse stocks can give attractive returns to retail investors in the long run.
In this article, we discuss the 10 long-term stocks to buy according to Warren Buffett. If you want to skip our detailed analysis of these stocks, go directly to the 5 Long-Term Stocks to Buy According to Warren Buffett. There has been a lot written about the legendary investing prowess of Warren Buffett, the chief […]
With the business potentially at an important milestone, we thought we'd take a closer look at The Lion Electric…
Believe it or not, the stock of Amazon (NASDAQ: AMZN) has done basically nothing over the past year and half. Looking underneath the hood, AWS accelerated 39% versus 37% in the prior quarter and 29% in the prior-year period. Operating margins came in over 30%, despite Amazon's heavy investments in growth.
The payment processor has fallen out of favor with the market recently
On Sunday, Dr. Fauci gave a guardedly hopeful update on the omicron variant, and investors in travel and leisure stocks latched onto that hope.
The tech sell-off continued in early trading today, and alternative energy stocks were no exception. Hydrogen fuel technology company Plug Power (NASDAQ: PLUG) initially dropped more than the overall Nasdaq Composite Index, losing more than 6%. It highlighted Elon Musk's view that hydrogen fuel cells aren't the right path for electric vehicle development.
Shares of Latin American e-commerce and fintech leader MercadoLibre (NASDAQ: MELI) declined 19.8% in November, according to data from S&P Global Market Intelligence. While MercadoLibre reported third-quarter earnings during the month, that doesn't seem to be the culprit behind the fall, as the stock rose immediately after reporting. Rather, an unexpected mid-month equity offering started the decline, which was later accentuated by a sharp drop in growth stocks brought on by tightening financial conditions.

source

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Must Read

spot_img