Mega-cap tech and chip stocks took a hit today
All three major indexes finished deep in the red today, as minutes from the December Federal Reserve meeting indicated plans for an aggressive pullback in bond holdings and general policy aid before the summer. The Nasdaq suffered the greatest, taking a 522-point haircut, while the Dow followed behind with a 392-point loss of its own. Weighing on the former was mega-cap tech stocks, as well as a drop in chipmakers. Investors are also digesting the latest ADP employment report, which showed a job growth of 807,000 for December.
Continue reading for more on today's market, including:
- Software giant looks ripe for a rebound
- Small-cap stock with plenty of upside potential
- Plus, GoPro's attractive entry point; analyst slams tech giant; and Beyond Meat becomes an options favorite.
The Dow Jones Average (DJI - 36,407.11) shed 392.54 points, or 1.1% for the day. Merck (MRK) led the gainers today, adding 2.4%, and Salesforce.com (CRM) paced the laggards for a second day, with an 8.3% fall.
The S&P 500 Index (SPX - 4,700.58) slipped 93 points, or 1.9% for the day. Meanwhile, the Nasdaq Composite (IXIC - 15,100.17) moved 522.5 points lower, or down 3.3% for today's session.
Lastly, the CBOE Volatility Index (VIX - 19.73) added 2.8 points, or 16.68% for the day.
- Fitness clothing powerhouse Nike (NKE) Wednesday submitted a lawsuit against peer Lululemon Athletica (LULU), regarding infringement for an at-home workout mirror. (CNBC)
- Arrivals into Ireland will no longer be required to supply a negative Covid-19 test, per a new government decision. Specifically, incoming travelers will be exempt if they can supply a proof of recent infection, a digital Covid Certificate, or proof of vaccination. Those without the above will need a negative PCR test taken within 72 hours. (Bloomberg)
- Analyst eyes attractive entry for GoPro stock.
- Why this brokerage firm turned bearish on a tech powerhouse.
- Options traders blast Beyond Meat stock following KFC buzz.
There were no earnings of note.
Oil Logs 6-Week High on Inventory Data
Oil logged its best day since November following a sixth-straight weekly drop in domestic crude inventories. The Energy Information Administration (EIA) also reported that U.S. crude fell by 2.1 million barrels in the week ending Dec. 31. February-dated oil added 86 cents, or 1.1%, to finish at $77.85 per barrel.
Ahead of the released of the Fed's meeting minutes, Gold futures marked a win for a second session, as investors flocked in fear to the precious metal. February-dated gold tacked on $10.50, or 0.6%, to close at $1,825.10 per ounce.