Tuesday is shaping up to be tough for tech stocks, after a health received investors to start the week.
The Nasdaq Composite COMP,
– 40% more in the last twelve months; on Monday it fell 2.5% due to concerns that bond yields were rising and could make these technology stocks look expensive. When so-called “risk-free” yields increase, it is much more difficult to justify equity valuations that appear high.
Manufacturers of electric cars Tesla TSLA, which are the lowest in the market premature
it drops 6% after falling about 8% on Monday. Our call of the day comes from Saxo Bank’s head of equity strategy Peter Garnry, who has warned customers that Tesla is embroiled in a “risk cluster” involving bitcoin and Cathie Wood’s ARK Investment Management firm.
Tesla announced a $ 1.5 billion bitcoin investment earlier this month. Along with Tesla’s weakness, Bitcoin fell 10% early Tuesday, which some attributed to criticism from Treasury Secretary Janet Yellen (see below). This cryptographic drop “will obviously illustrate the volatility of the gains that Elon Musk has delivered to Tesla,” Garnry said.
Read: Tesla bitcoin gambit already grossed $ 1 billion, a higher-than-2020 profit from car sales, according to analyst
Meanwhile, Tesla “is also the largest position of all ARK Invest ETFs that added pressure to its largest fund, the ARK ARKK Disruptive Innovation Fund,
losing 6% yesterday. This is exactly the risk cluster we have been concerned about and he wrote about two weeks ago“, Said the strategist.
Read: The shares aren’t in a bubble, but that’s what fund manager Cathie Wood is, according to
In Saxo’s note, which delved into the fund’s holdings, which are extremely popular and actively managed, Garnry highlighted ARK’s concentration on biotech names that he said could be risky if the market decides to invest. And Tesla shares account for 6.7% of total assets managed among the five ETFs actively managed by ARK, according to data Saxo analyzed two weeks ago.
“What it means is that an equity correction for whatever reason, could be a higher interest rate or prolonged blockages of COVID-19, could trigger sales in biotech stocks or Tesla stocks and cause a deterioration in the performance that could start the net output of AUM and then the feedback loop has begun, ”Garnry said at the time.
For his part, Wood, CEO of ARK Invest and manager of the popular exchange-traded fund ARK Innovation, said last week that he was surprised at how quickly companies are adopting bitcoin and that their “confidence in Tesla it has grown”.
The markets
ES00 stock futures,
YM00,
NQ00,
fall, led by technologies, with the European actions SXXP,
sinking apart from some travel stocks. Asian markets had a mixed day 000300,
CL00 oil prices,
increase, while the performance of the TMUBMUSD10Y Treasury note to 10 years, closely monitored,
quotes around 1.35%.
The graph
Treasury Secretary Yellen may have left some Bitcoin Steam BTCUSD,
after repeating some concerns about cryptocurrency in an interview with the New York Times’ Dealbook. Bitcoin fell 13% for the last time to $ 47,909, which meant a lot of other cryptocurrencies.
The buzz
All eyes are on Federal Reserve Chairman Jerome Powell, who begins the two-day testimony at Capitol Hill. With more than 10 million Americans still unemployed, “Mr. I’m sure Powell will make an effort to put tapering in bed aside and rightly so, as I’m afraid to think about what a 2020 taper-rage will look like, “said Jeffrey Halley, senior market analyst at Asia Pacific. , Oanda.
We will also receive the latest housing construction indices from S&P CoreLogic Case-Shiller and the Federal Housing Finance Agency, along with an update on consumer confidence.
Shares of Home Depot HD Home Improvement Retailer,
they fall despite the optimistic results.
Shares of the special purpose acquisition company Churchill Capital CCIV,
also known as a blank check company, is sinking into the premarket. After weeks of rumors, Churchill finally announced a deal to buy electric vehicle company Lucid Motors.
In mourning for more than 500,000 American lives lost against COVID-19, President Joe Biden observed a moment of silence Monday afternoon and urged the public to “mask.”
Facebook FB social networking group,
says it will restore links to news articles in Australia, five days after the proposed changes to the country’s media law.
Random reading
“I can say obscenities to people and they have no idea.” Redditors on positive pandemic.
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