This week’s U.S. stocks “open the door to black”, Monday morning that is, intraday diving, the three major indices are down more than 1%. Commentary suggests that this is because the market is concerned about the possible delay in the fiscal bailout package.
In European countries continue to strengthen the embargo concerns, stock indexes continue to fall, banks and automobiles and other industries that benefit from economic recovery stocks fell led by the decline.
Overnight Highlights
On Sunday, Republican and Democratic leaders within a moderate House group, along with a number of senators from both parties, joined together to question Biden‘s $1.9 trillion stimulus proposal. Brian Deese, director of the White House National Economic Council, is under pressure to justify the size. Sen. Susan Collins, R-Michigan, said she suggested the bipartisan lawmakers come up with their own, more targeted proposal.
Senate Majority Democrat Leader Schumer said Monday that his goal is to pass a new round of anti-Epidemic aid by mid-March of this year. The media said Schumer’s statement means that it will be a month before a new stimulus is introduced at the earliest, even with the efforts of members of Congress.
Investment firm Baird raised its price target for tesla to $728 from $488, an increase of nearly 50 percent. analysts at Baird believe that after achieving its goal of selling about 500,000 vehicles for the year 2020, Tesla will enter the next phase of innovation and could reach another major milestone as they anticipate that Tesla’s CEO Musk could integrate his businesses SpaceX, Neuralink and Boring Company into a single super structure, a combination that would help manage the volatility of each company and inject capital into new venture capital projects.
Dan Ives, an analyst at investment firm Wedbush, raised his price target for Apple by more than 9 percent to $175 from $160, equivalent to a 25 percent increase from Friday’s record high close. Ives expects Apple’s shares could surge on bright iPhone sales and strong demand in China; Apple will report strong fourth-quarter earnings this Wednesday , which should confirm the iphone 12 supercycle. iPhone shipments will grow 5% to 60 million to 70 million units in the first quarter of this year, with a minimum of 40 million units shipped in the second quarter.
U.S. stocks dive mid-day with tech stocks and popular Chinese stocks falling in tandem
The three major U.S. stock indexes performed differently, with the S&P 500 and Nasdaq Composite both opening higher, but turning lower in early trading, and the Dow Jones Industrial Average, which opened lower, both fell more than 1% by the end of the morning session.
The S&P 500 opened more than 0.26% higher, up nearly 0.5% in early trading when it brushed a new daily high, turning down in less than an hour and a half after the opening, down more than 1.1% at the end of the morning session, turning up at midday. The Nasdaq opened 1% higher, up nearly 1.4% in early trading to a new daily high, down nearly 1.3% at the end of early trading, also turned up at midday. The Dow Jones Industrial Average opened slightly lower than 7 points, down more than 200 points less than half an hour after the opening, brushing a new daily low at the end of the morning session, down more than 430 points during the day, down nearly 1.4%, gradually narrowing most of the losses in the afternoon session.
FAANMG six major technology stocks had turned down in early trading, of which Nifty fell more than 1% to lead the decline, Apple once rose more than 4% in early trading, hitting a new intraday high, the end of the morning session when the short term turned down.
Tesla once rose more than 6.3% in early trading, rising above the $900 mark for the first Time in its history, also turned down briefly at the end of the morning session.
Among the more volatile stocks, GameStop (GME), which rose nearly 80% intraday on Friday and closed up more than 50%, rose nearly 145% in early trading on Monday, hitting a new intraday high for the second consecutive day and rising more than 60 times from last April’s low of $2.57, before turning down briefly at the end of morning trading.
Bed Bath &Beyond (BBBY) and AMC Entertainment rose nearly 58% and 40%, respectively, in early trading, and like GameStop, became stocks that forced short-sellers to buy back to form a rollover as retail investors hugged the market.
Some Chinese stocks dived, with Misty Core Technology, the parent company of China’s largest e-cigarette brand, which went public on Friday, up nearly 19% at the beginning of the session and once down more than 11% in early trading. Early trading had risen more than 6% and 4% of the Peng car and Azera car once fell more than 8% and 5%, respectively, early gains had reached 8% of the Beili Beili (B station) once fell more than 3%, early gains of more than 3% of Baidu once fell more than 4%, early gains of more than 2% of Alibaba had a short turn down.
Pan-European stock index hit a new low of nearly three weeks, led by banks and auto stocks fell nearly 3%
Pan-European stock indexes opened lower on Monday and turned lower during the session, closing lower for the second consecutive day. The Euro Stoxx 600 closed down 0.83% at 405.13 points, a new low since Jan. 5.
Commentary suggested that the weaker-than-expected German IFO business sentiment index for January released on Monday, the possible extension of the embargo in several European countries, coupled with the delayed delivery of the new crown vaccine hit the broader European stock market.
Stoke 600 sectors, only a slight increase of 0.01% on Monday, personal and household goods, up nearly 0.7% of health care and telecommunications up more than 0.9% of the three closed higher. A number of sectors benefiting from the economic recovery fell, including a decline of nearly 3% of the banks and fell nearly 2.9% of the automotive and parts led the decline, down nearly 2% of insurance, down nearly 1.9% of travel and leisure and oil and gas fell in front, industrial products and services, construction and building materials, retail, basic resources, media, chemicals were down more than 1%, the bottom of the decline was down more than 0.1% of utilities.
Major European stock indexes fell for the third consecutive day, with many stock indexes falling more than 1% on Monday. Germany‘s DAX 30 index closed down 1.66%, France’s CAC 40 index closed down 1.57%, the U.K. FTSE 100 index closed down 0.84%, Italy’s FTSE MIB index closed down 1.60%, Spain’s IBEX 35 index closed down 1.73%.
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