Stocks Reverse; FANGs Rise, J&J Lifts Dow, This Drone Maker Spikes | Stock News & Stock Market Analysis

Stocks opened in the red, but quickly turned mixed early Wednesday, as many tech-sector stocks reversed early losses and Johnson & Johnson (JNJ) bolstered early action among Dow industrials.

X The Nasdaq Composite opened down 0.3%, then turned 0.1% higher. The S&P 500 improved to a fractional gain. The Dow Jones industrial average opened to narrow losses, but Johnson & Johnson jumped 1.3%, hauling the index up 0.1%.

A brisk sell-off tore across Asia’s stock markets Wednesday, triggered partly by reports that the People’s Bank of China had recommended tightening the country’s money supply. Hong Kong’s Hang Seng Index plummeted 2.1%. In Japan, Tokyo’s Nikkei 225 dived 2%.

Europe’s markets were mixed in afternoon trade, with Frankfurt’s DAX down 0.9%, the CAC-40 in Paris off 0.5% and the FTSE 100 in London improved to a 0.2% gain.

Politics fed into Wednesday’s early trade from a number of different angles. Concerns over a Brexit deal in the U.K.  and of a potential government shutdown in the U.S. were factors.

Also, uncertainties raised by President Trump’s reported, pending declaration that the U.S. will formally recognize Jerusalem as Israel’s capital and move the country’s U.S. embassy to that city played a role in early market action. The president’s Israel announcement is expected in a midday speech.

Home Depot, Apple, Intel Lead Dow Declines

Intel (INTC) dived more than 1%, taking the hardest early hit among Dow stocks.

Home Depot (HD) slipped 0.8% after reaffirming its fiscal 2017 earnings and revenue guidance, and announcing a $15 billion share repurchase program. Home Depot shares Wednesday traded close to 14% above a 160.96 buy point.

Apple (AAPL) dipped 0.5%. The stock is four weeks into a flat consolidation, hovering just out of buy range beyond a prior 160.97 buy point.

Among the FANG stock tech leaders, Facebook (FB)leapt 1.4%, after Evercore initiated coverage on the stock with an outperform rating.

Tesla (TSLA) eased 0.1%. On Tuesday, Cascend Securities had downgraded the stock to sell, from hold, citing a weakening in customer demand due to the company’s ongoing production delays, and asserting the company would need to return to the market to raise cash before the end of 2018.

Tesla shares are down 22% from a mid-September high, and trading below their converged 10- and 40-week moving averages.

Some chip stocks were under early pressure, with Skyworks Solutions (SWKS) down 2% and Qorvo (QRVO) posting a 3% decline.  Broadcom (AVGO) traded down 1.3%, ahead of its fiscal fourth-quarter report expected after today’s close.

Dronemaker Aerovironment (AVAV) vaulted 34% higher out of the starting gate, after reporting a surprise fiscal second-quarter profit that topped analyst expectations by a wide margin, along with a 47% gain in revenue and solid full-year guidance.

The gap up gain put shares above a 55.85 buy point in a nine-week basing pattern.

Bitcoin traded above $13,000, putting the cyrptocurrency up nearly 18% since the start of the week. Bitcoin-related stocks were positive, with Riot Blockchain (RIOT) up 2% and Marathon Patent Group (MARA) showing a 3% gain.

November Hiring Tops Expectations

U.S. private employers added 190,000 workers in November, with service-sector employers accounting for 82% of the gains, according the the National Employment Report from ADP. That was a sharp drop from the 235,000 new workers hired in September,  but above economist consensus views for 186,000 added employees.

Third-quarter productivity increased 3%, the Labor Department estimated, in line with second-quarter levels and just below consensus targets for a 3.2% increase. Unit labor costs eased 0.2%, from a 0.5% advance in the second quarter, marking a surprise decrease in inflationary pressure for economist who had projected a 0.3% increase in costs.

Oil prices dipped more than 1%, putting U.S. benchmark oil below $57 a barrel ahead of the Energy Information Administration’s weekly stockpiles report, due out at 10:30 a.m. ET.


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Originally posted 2017-12-11 11:08:44.


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