Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Dow Slips as Tech Bulls in Hiding Again

Published 23/09/2020, 17:39
© Reuters.
US500
-
DJI
-
MSFT
-
FDX
-
GOOGL
-
AAPL
-
AMZN
-
JNJ
-
NKE
-
TSLA
-
IXIC
-
PWR
-
META
-
ODFL
-
GOOG
-
NKLA
-

By Yasin Ebrahim

Investing.com – The Dow fell Wednesday as the recent reprieve in tech appeared to be short-lived, while positive vaccine news and President Donald Trump's move to ease fears of a second lockdown did little to improve sentiment.

The Dow Jones Industrial Average fell 0.45%, or 122 points. The S&P 500 was down 0.74%, while the Nasdaq Composite lost 1.17%.

Tech gave up some gains this week, paced by a more than 2% decline in Alphabet (NASDAQ:GOOGL), Amazon.com (NASDAQ:AMZN) and Apple (NASDAQ:AAPL). Microsoft (NASDAQ:MSFT), fell 1.7%, and Facebook (NASDAQ:FB) was marginally lower.

Tesla (NASDAQ:TSLA), meanwhile, fell more than 5% even as Chief Executive Officer Elon Musk provided an update on full-year delivery targets. Musk forecast vehicle deliveries to increase by 30-to-40% on last year's 367,500 vehicles, implying between 477,750 and 514,500, largely in line with a previous estimate to roll out half a million cars this year.

Energy fell about 2%, adding to downside momentum in the broader market despite U.S. oil prices turning positive on data showing crude inventories fell by a less-than-expected 1.639 million barrels last week.

Industrials shrugged off the broader market malaise thanks to a rally in Quanta Services (NYSE:PWR), FedEx Corporation (NYSE:FDX), and Old Dominion Freight Line Inc (NASDAQ:ODFL).

The volatile week for stocks seen so far this week comes as fears over new lockdowns mount amid a resurgence in the coronavirus. Trump, however, said the U.S. would not be implementing a second lockdown.

Against the backdrop of rising infections, drugmakers continued to ramp-up efforts on the vaccine front. Johnson & Johnson (NYSE:JNJ) entered the final stage of clinical trials for its potential single-shot coronavirus vaccine, sending its shares 1% higher.

In consumer discretionary, Nike (NYSE:NKE) was the standout performer, rallying more than 9% after the sportswear giant delivered better-than-expected first-quarter earnings thanks to a surge in online sales.

 "In all, Nike posted a large Q121 beat as the outlook moves higher & is likely conservative in our view with further upside opportunities," Wedbush said in a note.

In other news, The Wall Street Journal reported talks between Nikola and its partners to build hydrogen-refueling stations stalled amid allegations from short-seller Hindenburg that it misled investors. Nikola (NASDAQ:NKLA) was down 18%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.