Markets Slowly Recover After Major Holiday Hit on Stocks
The markets are rising a bit today, following a dramatic couple of weeks leading up to the end of the year. After a “very good call” with China’s President Xi Jinping Saturday, U.S. President Trump said “big progress” was made in regard to trade between the nations. Some good news is desperately needed after just about every stock in the S&P 500 took a hit, with a monthly loss of 9%. The drop was jarring for investors who have been enjoying a bull market in the United States. Europe’s market took a 13% dip, the largest on record since 2008. Asia, too, saw its worst year since 2011 and the Japanese yen declined. The only security that was up today — by 1.3% — was the Hong Kong Hang Send Index.
What’s been affected? Oil has slumped, showing its biggest down since 2014. Selling at just above $46 a barrel, the crude stuff erased any gains it had made, and it’s about to see its first annual drop since 2015. The government shutdown doesn’t help either. Trump is holding government offices from running until he can strike a deal over funding for his proposed border wall, which he promised Americans on the campaign trail. The dollar is edging lower as the days of the shutdown continue.
Some stocks of note in today’s news include Tesla (TSLA), Amazon (AMZN) and Netflix (NFLX).
Elektrek reports Tesla still has more than 3,000 Model 3’s in the U.S., which is a deterrent for the company. Tesla planned to sell off all the inventory before year’s end. The electric car giant’s stock is down .8% following the news.
Amazon announced it is planning to expand Whole Foods around the U.S. in order to make 2-hour delivery services more accessible to more people who’ve signed up (or who want to sign up) for the service. That’s according to the Wall Street Journal. Employees of Whole Foods, which was acquired by AMZN in August of 2017 are scouting out land for retail spaces in Idaho, southern Utah and Wyoming. These locations currently don’t have Whole Foods. The stock is up by about 1.50%.
A small note of confidence for the market during this downtrodden time — Netflix stock is up 1.85% in premarket trading after a tweet from the company suggested large streaming numbers for its film “Bird Box.” The news is helpful for the company’s image, as Netflix has taken on criticism for not publicly sharing its viewership data and even claims that the data NFLX does release is in contrast with Nielsen numbers. Shares of Netflix are up 33% year to date.