Technology stocks

Tech stocks struggle in rising rate environment – ​​ShareCafe


  
    
  

  
  

US stocks were down in very quiet trading on Monday. Shares fell on Monday as traders struggled to regain their footing after the previous week’s selloff amid growing concerns over rising rates and tightening U.S. monetary policy.

The week ahead will see investors focus on China’s PMI, Eurozone CPI on Wednesday and US jobs report on Friday.

Monday’s stock moves also coincided with the yield on the 2-year Treasury note hitting a new 15-year high as fears of rising rates persisted.

The Dow Industrial Average slipped 0.57%. The S&P 500 fell 0.67% and the Nasdaq Composite fell 1.02%

During Monday’s session, the Dow briefly turned positive after falling more than 300 points earlier in the day. 3M and Salesforce were the biggest laggards of Dow Industrials’ 30 stocks. These losses were mitigated by advances of almost 1% on Walmart and Chevron.

Technology was the worst performing sector in the S&P 500 as rates rose, while energy and utilities outperformed.

Technology hardware, semi-finished products, software, media and entertainment, pharmaceuticals, credit cards, trucking and airlines are among the worst performers.

Energy was the star of a good day for crude. Oil prices stabilized more than 4% on Monday, extending last week’s gain as potential OPEC+ production cuts and the conflict in Libya helped offset a strong US dollar and prospects. disastrous for US growth.

It should be noted that overnight, Honda and LG Energy Solution said overnight that they would jointly build a battery plant in the United States for a slate of new electric cars the automaker is working on.
Moderna is suing Pfizer and BioNTech, accusing the companies of infringing Moderna’s patents for the mRNA technology used to develop the Covid-19 vaccine.

Abbott will restart production of its Similac infant formula. The reopening of a Michigan plant that had been closed in February due to contamination concerns is aimed at easing a shortage of infant formula in the United States. The plant closure was of course a gift to Australian producers like BUBS.

The first fully hydrogen-powered passenger train service made its debut last week in northwestern Germany. Trains can run all day – up to 620 miles – on a single tank of hydrogen,

Currencies

The US dollar was weaker against the euro but firmer against the yen and the pound. The dollar index earlier hit its highest levels since 2002. Investors stepped up their bets against the euro. Bets that the currency will fall further have reached their highest level since March 2020. The culprit: sharply rising energy costs in Europe.

An Australian dollar strengthened against the US dollar yesterday, buying 69.02 US cents (Mon: 68.86 US cents), 58.97 pence sterling, 95.75 yen and 69.02 euro cents.

Goods

Iron ore futures point to a 1.7% decline.

Gold prices reversed course to trade flat on Monday as a rally in the dollar fizzled out

Silver was down $0.15 or 0.8% at US$18.67 an ounce.

Copper fell $8.65 or 2.34% to US$361.05 per pound.

Oil added $3.95 or 4.2% to US$97.01 a barrel.

Futures contracts

SPI futures point to a 0.3% gain.

Numbers around the world

Across the Atlantic, European markets closed lower. Paris lost 0.8%, Frankfurt fell 0.6% while London’s FTSE was closed.

Asian markets closed on a mixed note. Tokyo’s Nikkei fell 2.7%, Hong Kong’s Hang Seng fell 0.7% and China’s Shanghai Composite closed up 0.1%.

The Australian stock market fell nearly 2% to 6965 yesterday.

Ex-dividends

Nineteen companies are ready to trade without the right to a dividend.

Bapcor (ASX: BAP) pays 11.5 cents fully franked
Beach Energy (ASX:BPT) pays 1 cent fully franked
Capral (ASX:CAA) pays 20 cents fully franked
Domino Pizza Enterpr (ASX:DMP) pays 68.1 cents 70% postage
Downer EDI (ASX:DOW) pays 12 cents postage free
ECP Emerging Growth (ASX:ECP) pays 2.75 cents fully franked
Evolution Mining (ASX:EVN) pays 3 cents fully franked
Gryphon Capital (ASX:GCI) pays 1.06 cents unstamped
Kkr Credit Inc Fund (ASX:KKC) pays 1.0938 cents postage free
MA Financial Group (ASX:MAF) pays 6 cents fully franked
Maxiparts (ASX: MXI) pays 2.5 cents fully franked
Netwealth Group (ASX:NWL) pays 10 cents fully franked
Perpetual Cred Trust (ASX:PCI) pays 0.4661 cents postage free
Sunland Group (ASX: SDG) pays 15 cents fully franked
360 Capital Enhanced Income Fund (ASX:TCF) pays 3 cents with no deductible
360 Capital Group (ASX:TGP) pays 8 cents unstamped
Teaminvest Private (ASX:TIP) pays 0.3 cents fully franked
Ventia Services Group (ASX:VNT) pays 7.47 80
Winton Land (ASX:WTN) pays 0.9609 cents unstamped

Dividends payable

Five companies are ready to pay eligible shareholders today.

Australian Foundation Invest Comp (ASX: AFI)
BKI Investment Company (ASX: BKI)
DEXUS Property Group (ASX:DXS)
FSA Group (ASX: FSA)
US Student Housing REIT (ASX:USQ)

Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.