Stock market today: tech stocks fall as bond yields rise, beyond the meat soars
The stocks were mixed, with the
led lower by more sales in tech names on Wednesday. Markets are awaiting the Federal Reserve minutes to be released later today and the December jobs report, due Friday.
Future for the
Dow Jones Industrial Average
rose 7 points after the index rose 214 points to close at a new all-time high of 36,799 on Tuesday. the
was on track to start down 0.1%, while futures for the tech-rich Nasdaq showed an open 0.4% decline. The Nasdaq fell 1.3% on Tuesday.
On Wednesday, the ADP said the US economy created 807,000 private sector jobs in December, more than doubling expectations. Wall Street will put more emphasis on Friday’s report on the non-farm payroll, which economists expect to reveal 422,000 more jobs.
Markets want to see people getting back to work at a brisk pace, but not so quickly that the Federal Reserve would speed up its schedule of interest rate hikes, which are aimed at suppressing inflation.
The Fed itself will update the markets on its monetary policy this afternoon, when the minutes of the recent Fed meeting are released.
Meanwhile, tech stocks are hit by rising bond yields, with the 10-year Treasury yield hitting 1.66% from 1.51% on Friday. This is the highest level of return since late November and close to its pandemic-era high of 1.75%. The Nasdaq is now expected to open trading on Wednesday, down 3% from its all-time high reached at the end of November. Higher bond yields make future earnings less valuable, and many tech companies count on big earnings many years later.
“Apparently, the sharp rise in US yields this week triggered a shift from growth to value, or as I say, from the Nasdaq to the Dow Jones,” said Jeffrey Halley, analyst at brokerage Oanda.
As for the rest of the market, traders seem to be in a wait-and-see mode. The stock market recently profited from a “Santa Claus rally,” where people fund their retirement accounts and position as professional fund managers to buy stocks for the New Year, pushing stocks up in December. To date, the S&P 500 is up 5% from a low on December 20.
Abroad, in London
was 0.2% higher and that of Hong Kong
Hang Seng Index
Here are five stocks in motion on Wednesday:
Beyond the meat
(ticker: BYND) was up 9% in the US pre-market, which is expected to recover after falling 5% on Tuesday. The recent jump came as the company said its plant-based fried chicken product will be available at KFC stores across the United States next week.
The stock (PINS) rose 1.5% after being overweight neutral at Piper Sandler.
(PFE) stock rose 2.1% after being upgraded to Buy from Neutral at Bank of America.
The stock (CRM) fell 3.3% after being demoted to Neutral Buy at UBS.
(W) stock fell 5.1% after being demoted to Neutral from Outperform at Wedbush.
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