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Dow Falls on U.S.-China Jitters, Profit Taking on Value Stocks

Published 11/30/2020, 02:03 PM
Updated 11/30/2020, 03:19 PM
© Reuters

By Yasin Ebrahim

Investing.com - The Dow fell Monday on souring U.S.-China tensions amid reports the Trump administration is considering blacklisting two major Chinese companies. 

The Dow Jones Industrial Average fell 1.1%, or 335 points. The S&P 500 was down 0.5%, while the Nasdaq Composite rose 0.04%.

Sentiment on stocks made a soft start to the week on reports that Chinese chipmaker SMIC and national offshore oil and gas producer CNOOC (NYSE:CEO) could be ban from accessing US investors 

On top of rising U.S.-China tensions, profit-taking on value stocks on concerns about a surge in infections over the coming weeks following the Thanksgiving holiday also weighed on sentiment.

"There is almost certainly going to be an uptick because of what has happened with the travel," Dr. Anthony Fauci, top infectious disease expert, told CNN's State of the Union.

Energy was among the biggest decliners across the value sector, paced by weakness in oil prices as major producers meet to discuss whether to extend its output cuts that have helped limit the blow from falling demand in the wake of the pandemic.

Industrials were also in the red as airlines fell sharply following a weaker outlook from JetBlue.

JetBlue Airways (NASDAQ:JBLU) fell 3% after guiding fourth-quarter revenue to drop 70% year-over-year, compared with the prior guidance of a 65% decrease.

The company said booking trends remain volatile and expected revenue recovery will be nonlinear through the fourth quarter and beyond.

American Airlines Group fell 4%, (NASDAQ:AAL) Delta Air Lines (NYSE:DAL) slipped 1%, while United Airlines (NASDAQ:UAL) was up 0.5%.

Tech, meanwhile, struggled to advanced as the Fab 5, with the exception of Apple (NASDAQ:AAPL), continued to stutter. 

Amazon.com (NASDAQ:AMZN), Facebook (NASDAQ:FB), Alphabet (NASDAQ:GOOGL) and Microsoft  (NASDAQ:MSFT) were in the red.

On the stimulus front, the Federal Reserve said it would extend four of its lending programs due to expire at year-end to the end of the first quarter. 

In other news, Salesforce.com (NYSE:CRM) is reportedly set to announce its acquisition of Slack Technologies (NYSE:WORK) on Tuesday after the market closes, CNBC reported citing sources. 

Latest comments

Biden is weak..like trump mentioned he's been in the Senate 25+ years contributed nothing..4 years ahead of nothing.
Blacklisting 2 companies is creating jitters? That’s how stable Wall Street is? C’mon guys, you’re listening too much to Trump’s “ Lion is around the corner” scare tactics....
the real problem is that Biden is in china's pocket and has neither the strength of the competence to challenge them
China is where it is because every time you buy a cheap TV or lawn mower made in China you are endorsing the Chinese economic engine. Nothing to do with Biden . Zero to do with trump except he spun you an erroneous narrative.
China is a victim of Trump’s blind loyalties. USA must be best of friends with China to get out of the hole created by Trump by unleashing Covid to the USA. Remember, maybe Trump can blame the arrival of Covid on China but the death is blamed on Trump!!!
Good democrats love China. The Party ordered it.
china is our biggest friend, economical success is COMPETITION, if US cant compete, then your time as "empire" is OVER, STOP BEING AGGRESIVE you dum US peopel
Not the people are aggressive. The politicians are trying to look aggressive in order to manipulate the short minded. They know that globalization can t be defeated and this is the futute but they keep posing as nationalists and patriots... Shame
I’m one of the people. I’m tired of the multiple wars in my lifetime alone and US leadership’s constant need for an enemy. I hope the next administration can bring things to a calmer level. NO COLD WAR ROUND 2!
 hence why majority of trump voters are non college educated. He knows he can spin a narrative and not be challenged on the BS .
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chinese monopoly action should be stopped
what does China monopolised in ?
Aggression 😁
chinese monopoly action should be stopped
you remember what else happened in 1987?
ya a preview of 2008. Clinton's move a few years later to recall Glass-Stegall was the magic moment .Who would have guessed?
Stephen who wrote that bill? let's not try to paint this as a one way street
The world needs to boycott all Chinese products.
The whole world? China also needs to ban Chinese products?
And the next time you buy a three pack of underwear they'll be $39 because they are made by a nice union shop in Alabama.
Jeff I think they want to introduce slaves back in AL to keep the cost down. lol
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