By Alex Eule |
Tuesday, December 27
No
Holiday Respite. With
three days to go in 2022 trading, that long awaited year-end rally is feeling
increasingly unlikely. Traders trickled back from the holiday break Tuesday,
with the same lack of excitement for growth-focused stocks they've had for most
of 2022.
The tech-heavy Nasdaq Composite
fell 1.4% on the day, bringing the Nasdaq's year-to-date loss to 34%. (It was
only the 65th worst trading performance of the year for the Nasdaq.)
Meanwhile, the
more value-focused Dow
Jones Industrial Average
managed to eke out a gain of 38 points, or 0.1%. The broad-based S&P 500, split the difference, down 0.4% on the day.
Tesla, once the champion of
growth stocks, continued its decline, finishing down 11%. Shares of the
electric vehicle maker are now down for seven consecutive days, a stretch
that's subtracted nearly a third of the stock's value. The stock is down 69%
this year, on track for its worst year ever. Barron's
Karishma Vanjani notes that Tesla has now fallen out
of the Top 10 largest U.S. companies by market value, falling to No.
16 as of Tuesday.
One bright spot in the market came from
Chinese stocks, which continued to move higher as China pulls back on its Covid
Zero policies. Shares of E-commerce firm Alibaba Group rose 8.2% on the
day and are up 24% over the last month. Tencent, the Chinese tech
conglomerate, rose 3.9%. Those two companies comprise roughly 20% of the
holdings in the iShares MSCI China ETF, which
rose 3.9% on Tuesday.
DJIA: +0.11% to 33,241.56
S&P 500: -0.40% to 3,829.25
Nasdaq: -1.38% to 10,353.23
The Hot Stock: Wynn Resorts +4.5%
The Biggest Loser: Tesla -11.4%
Best Sector: Energy +1.1%
Worst Sector: Consumer Discretionary -1.6%
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