T3 Trading chief strategist Scott Redler says if investors are looking for other tech stocks to invest in, they should look to Google and Sonos.
U.S. equity markets pulled back Tuesday morning, after five straight days of gains, amid concerns the rally has gone too far, too fast.
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The Dow Jones Industrial Average fell 208 points, or 0.79 percent, in the opening minutes of trading while the S&P 500 and the Nasdaq Composite were lower by 0.59 percent and 0.32 percent, respectively. The Nasdaq on Monday posted its 24th record-high close of the year and 150th under President Trump.
The Organization for Economic Cooperation and Development warned on Tuesday that global unemployment could reach 12.9 percent this year and not return to pre-pandemic levels until 2022 at the earliest.
Looking at stocks, drugmaker Novavax was awarded $1.6 billion as part of the U.S. government’s Operation Warp Speed program which aims to develop a COVID-19 vaccine as soon as this year. The money will help fund late-stage trials of the drug maker’s experimental vaccine and depending on success, secure 100 million doses for the American people.
Fellow drugmaker Regeneron was awarded $450 million for the manufacturing and supply of its experimental antibody cocktail, which if proven successful could begin initial doses this summer.
Meanwhile, United Airlines told employees that furloughs were possible as bookings fell after New York, New Jersey and Connecticut mandated visitors from states hit hard by COVID-19 to a 14-day quarantine, according to The Wall Street Journal. Rivals American Airlines and Delta Airlines fell in sympathy.
Elsewhere, social media companies Facebook, Google and Twitter have paused processing government requests for user data in Hong Kong until they can further assess the national security law passed last week by Beijing.
Tesla’s price target was raised to $740, up from $650, at Morgan Stanley due to a “resilient” second quarter that makes the stock “less risky/stronger financially” than its rivals. The firm said shares, which have closed in record territory for five straight days, could hit $2,070 in a bull case scenario.
On the commodities front, West Texas Intermediate crude oil slipped 36 cents to $40.27 a barrel while gold fell $5.10 to $1,788.40 an ounce.
U.S. Treasurys gained, pushing the yield on the 10-year note down by 1.3 basis points to 0.671 percent.
In Europe, Britain’s FTSE paced the decline, down 1.54 percent, while Germany’s DAX and France’s CAC were lower by 1.22 percent and 1.07 percent, respectively.
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Asian markets finished mixed with China’s Shanghai Composite adding 0.37 percent while Hong Kong’s Hang Seng slid 1.38 percent and Japan’s Nikkei lost 0.44 percent.
