Stock

Dow slips on profit-taking, knowledge exhibits fragile shoppers

© Reuters

By Yasin Ebrahim

Investing.com – The Dow pulled back Tuesday as economic data pointing to underlying consumer weakness during the crucial holiday season weighed on sentiment and overshadowed the approval of the $ 900 billion stimulus package on Capital Hill.

That fell by 0.50% or 150 points. That fell 0.11% while that rose 0.41%.

The value fell from 92.9 in September to 88.6 in December, whereby the forecast of the economists for a value of 97 was missing.

"Overall confidence is likely to get worse before it gets better, but another round of stimulus should help soften the blow a bit and fill the gap with the post-vaccination world," Jefferies (NYSE 🙂 said in a note.

U.S. lawmakers passed a $ 900 billion stimulus plan that will include direct payments to Americans and small businesses with approximately $ 8 billion in support to aid vaccine distribution.

Optimism about the successful passage of a stimulus package has increased in recent weeks, helping markets extend profits into overbought territory, increasing the prospect of profit-taking.

"Overall, US stocks are generally overbought / expanded on the charts right now – so we remain vigilant when it comes to first quarter profit-taking / consolidation," Jenney said in a note.

Risk sentiment has also been clouded by ongoing concerns that a mutant strain of Covid-19 identified in the UK may already be present in the US, raising fears of new restrictions and lowering travel-related populations.

"Given the low proportion of US infections sequenced, the variant could already be in the US without being discovered," said the Centers for Disease Control on Tuesday.

Delta Air Lines (NYSE :), American Airlines (NASDAQ 🙂 and United Airlines Holdings (NASDAQ 🙂 were down 2%.

In terms of technology, Apple (NASDAQ 🙂 was one of the biggest winners on the day as investors digested the reports. The company is considering entering the electric vehicle market as early as 2024. A potential Apple car would also involve battery technology. Competition for runaway leader Tesla (NASDAQ :).

In other news, Peloton Interactive (NASDAQ 🙂 rose 12% after the exercise bike maker signed a $ 420 million deal to purchase equipment maker Precor to bolster its presence in the home fitness market.

Walmart (NYSE 🙂 fell more than 1% after the US Department of Justice sued the retailer for allegedly fueling the opioid crisis in the US.

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