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The UK discovered that a variant of the virus has triggered a wave of lockdowns. Many European countries and Hong Kong have urgently announced the suspension of flights to and from the UK. Both Qiong and the outside world are closed, but the US is expected to attract some investors to buy into the dips through a new round of stimulus plan, and US stocks have regained lost ground. Bank stocks and Nike helped the Dow Jones index, which fell 400 points during the session, to rise to the top.
Affected by news of Apple’s promotion of electric vehicle plans, Tesla’s inclusion in the S&P 500 Index plunged 6% on the first day. The index weight for inclusion in the index was 1.69%, making it the fifth largest constituent stock. Apple was up 1.24%. However, electric vehicle concept stocks increased sharply and Weilai Automobile increased 4.8%.
The two parties in the United States Congress finally reached a consensus to finalize a $ 900 billion bailout plan on Sunday. The Senate and the House of Representatives voted on Monday (21). Treasury Secretary Mennuchin said the cash can be distributed to the American people next week.
Bank stocks rose sharply due to relaxing restrictions from the Federal Reserve (Fed) on share buybacks. Goldman Sachs and Morgan Stanley were up 6%. Additionally, Nike’s last quarter earnings report was better than expected, and its digital revenue soared by more than 80%, encouraging its share price to rise 5%.
The new lockdown in the UK sent the European Stoxx 600 index down 2.3%, anxiety spread to US equities and oil prices fell.
In the UK a variant of the virus was discovered with a 70% increase in infectivity. The Johnson & Johnson government urgently expanded closure measures. London and most areas of south-east England were closed cities. The five-day plan to relax epidemic prevention restrictions on Christmas Day was also canceled. Germany, Italy, France, etc., successively announced the ban on flights to and from the UK over the weekend. France controls the shipment of goods. Hong Kong on Monday banned boarding for those who have stayed in the UK for more than 2 hours in the past 14 days.
Medical experts said that existing vaccines are still effective against mutant strains. The new strains are very similar to the old strains. The German company BioNTech, which jointly developed the vaccine with Pfizer, also said it is confident that existing vaccines will be effective against variant viruses.
WHO experts say that the variant of the virus found in the UK mutates more slowly than the flu virus and did not cause much alarm. According to Scott Gottlieb, former director of the United States Food and Drug Administration (FDA), the vaccine should be updated approximately every three years.
The global epidemic of new corona pneumonia (COVID-19) continues to have a fever. According to real-time statistics from Johns Hopkins University in the United States, the number of confirmed cases worldwide has exceeded 77.18 million and the number of deaths has exceeded 1.69 million. In the United States, more than 17.94 million cases have been diagnosed and more than 318,000 people died.
US President-elect Biden publicly administered Pfizer vaccines on Monday, increasing the confidence of the American people in vaccines. Current Vice President Pence, House Speaker Pelosi and Senate Republican Leader McConnell received all of their vaccines from Pfizer.
Monday (21) the performance of the four main stock indices of the United States:
- The Dow Jones index rose 37.40 points, or 0.12%, to close at 30,216.45 points.
- The S&P 500 Index fell 14.49 points, or 0.39%, to close at 3,694.92 points.
- The Nasdaq index fell 13.12 points, or 0.10%, to close at 12,742.52 points.
- The Philadelphia Semiconductor Index fell 17.45 points, or 0.63%, to close at 2,747.29 points.
The five kings of science and technology only blocked Facebook. Apple (AAPL-US) rose 1.24%; Facebook (FB-US) fell 1.31%; Alphabet (GOOGL-US) was up 0.48%; Amazon (AMZN-US) was up 0.14%; Microsoft (MSFT-US) was up 1.83%.
The constituent shares of the Dow Jones fell more and rose less. IBM (IBM-US) fell 1.95%; Coca-Cola (COLA-US) fell 1.73%; McDonald’s (MCD-US) fell 1.59%; Disney (DIS-US) fell 1.27%. Goldman Sachs (GS-US) was up 6.13% and Nike (NIKE-US) was up 4.91%.
Half of Fei’s constituent shares fell more than they rose. Advanced Micro Devices (AMD-US) fell 2.8%, Xilinx (XLNX-US) fell 2.62%, Intel fell 2.32% and Broadcom (AVGO-US) fell 1.31%. Cree (CREE-US) was up 1.37% and NXP (NXPI-US) was up 0.98%.
Taiwan ADR shares only closed at ASE. TSMC ADR (TSM-US) was up 0.53%; ASE ADR (ASX-US) fell 0.35%; UMC ADR (UMC-US) was up 3.57%; Chunghwa Telecom ADR (CHT-US) was stable.
Focus actions
Tesla (TSLA-US) was included in the S&P 500 index on Monday and fell 6.5% on the first day. However, as Tesla was kicked out of the S&P index apartment investment management company (AIRC-US), its share price rose 4.9%.
Apple (AAPL-US) Up 1%, Reuters reported that Apple is pushing “Project Titan” and promoting the development of autonomous vehicle technology, with the goal of producing a revolutionary epoch-making battery by 2024. Technical car. Due to the growing epidemic in the United States, all 53 Apple retail stores in California were forced to close.
The British variant of the virus suppressed leisure travel stocks and American Airlines (AAL-US) fell 2.5%.
Goldman Sachs (GS-US) rose more than 6%, Morgan Stanley (MS-US) rose 5.7%, JP Morgan Chase (JPM-US) and Bank of America (BAC-US) rose 3.7% . The Federal Reserve Bank of America (Fed) announced on Friday that major Wall Street banks will buy back shares in the first quarter of 2021, provided the sum of dividends and treasury shares cannot exceed the average net profit of the four most recent seasons.
The US stimulus plan is handed over to both houses for a vote, and the clean energy tax credit is expected to be extended. Solar energy stocks continued their gains last week, and JinkoSolar (JKS-US ) shot up 9.3%.
Electric vehicles became one of the few bright spots in China’s concept stocks. NIO (NIO-US) was up 4.8%, Xiaopeng Motors (XPEV-US) was up 1.3% and Ideal Motors (LI-US) was up 3.43%.
Nike (NIKE-US) rose 4.91% and its share price rose to a new high of $ 144.02. The sports company announced the financial report for the last quarter after the market last Friday was better than expected, with its digital performance rising 84% and the performance of Greater China growing strongly.
Shares of IBM (IBM-US) tumbled, and the company announced on Monday that it would acquire Nordcloud, a Finnish provider of cloud consulting services, at an undisclosed price.
Wall Street Analysis
Europe on Monday approved the emergency use of Pfizer’s vaccine and struggled to deliver it within a week, but at the same time, the UK increased its lockdown measures. Markets.com analyst Neil Wilson said that before the vaccine is fully implemented, US stocks may still correct due to panic in the near future, because the hope brought by the vaccine has been reflected in the rally in November. Investors should not think that the stock market can So it went up all the way.
Wilson noted that, at least in the UK stock market, there have been stock rotations. The share prices of British Petroleum (BP), Shell (Shell) and British Airways parent company IAG have fallen dramatically. At the same time, Ocado, an online grocery company, and Just East Takeaway, a delivery company A small number of shares on the rise.
David Carter, chief investment officer at Lenox Wealth Advisors, said: “The Christmas market may have to wait. News of the British variant of the virus has made the market realize that the new corona pneumonia epidemic it has not found a solution, and the road ahead is bumpy and full of uncertainty. “
Carter said the $ 900 billion fiscal stimulus in the United States covers unemployment benefits, assistance to SMEs and vaccine distribution funds. “The stimulus appears to be sufficient to avoid the economic downturn. Although it may not last long, it covers many significant actions to support the market.”
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