US close.5 Jan 2021 05:18
Inevitably there was going to be some nervousness after the N.Year break despite advices from the Far East and Europe which saw equities off to a solid start. January is usually a very good month for the 500 returning an av of c.1% these last 50 years and gainers outpacing losers by 1•58:1 over the same period. Not last year the Dow fell 282 in Jan.
Nothing of significant note caused the broad sell off soon after the bell. Virus headlines have been consistently horrid as US deaths hit 350,000 & the UK is now in total lockdown. The stimulus package seems to hit a roadblock every other day and we have the Georgia run off for the two remaining Senate seats, which if falling for Biden gives him control of the two houses. That might be bullish for Biden but Bearish for markets wary of his socialist stance on taxation.
The Dow fell 826 by midday led down by weakness in Boeing and Coca Cola between them they contributed to an 86 point drag on the 500. All 11 S&P sectors were in the red led by Real Estate, Utilities & Industrials. US Manufacturing picked up at its fastest rate in 6 years the news coming on the heels of upbeat nos in China & Europe but got lost in the covid mrkt sell off.
Boeing was hit by a bearish note from Investment House Bernstein cut to 'underperform' relating to the MaxJet and cash flows this year, shares off $15 to $204 the worst on the big board.
Stocks in focus included . Tesla reported record vehicle deliveries in Q4, shares gaining $28 to $733 on 48•5m traded valuing the Co at over $700bn.
Airlines, Cruises, Hotels & Leisure came under the hammer, most off 4% but *Norwegian & *Spirit Airways down 6%. FAANGs headed down, Fbk off 1%, Amazon 2%, Google 2%, Msoft 2%, Apple 3% & Netflix 4%, bucking the trend Zoom put on $23 to $360 well off its $568 high.
Bigest faller was the recent November debutant *Quantumscape a battery Co has been battered by profit takers these last 6 days mainly due to worries over its technology. Shares off a whopping $36 today to $49. The stock has tanked $73 since Dec 28. At its 2020 high the stock was up over 1000%. The Co is backed by Breakthrough Energy a Co associated with Bill Gates and is in the early stages of battery production for electric vehicles.
Finally *China Telecom & *China Mobile were off 7% as their ADRs will be delisted from the NYSE on Trumps executive order barring US investors from holding Chinese stocks. This decision was later reversed after consultations with the Reg Authorities.
On the NYSE decliners outpaced advances by 2•14:1, 54 new highs zero lows on the 500. Volumes 14•15bn well above the 11bn daily average.
DJ -383 (30,224)
SP -55 (3701)
NS -194 (12,695)
R2 -12 (1107)
Morning all.
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