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Dow Turns Negative as Tech Wreck Offset Strength in Energy, Financials

Published 03/03/2021, 01:41 PM
Updated 03/03/2021, 04:17 PM
© Reuters

© Reuters

By Yasin Ebrahim

Investing.com – The Dow gave up gains Wednesday, as gains in energy and financials on growing expectations for a sooner and stronger than expected reopening were offset by a slump in high-flying tech. 

The Dow Jones Industrial Average fell 0.39%, or 121 points. The S&P 500 fell 1.30%, and the Nasdaq Composite fell 2.70%. 

Energy was up more than 1% on rising oil prices as investors shrugged off a record weekly jump in U.S. weekly crude stocks, attributing the build to lower inventories used to produce products like gasoline following the cold snap that wreaked havoc in oil-rich Texas.

Diamondback Energy (NASDAQ:FANG), Hess (NYSE:HES) were up more 4%, while HollyFrontier Corporation (NYSE:HFC) soared 6% 

Financials also contributed to the rally, lifted by a jump in U.S. rates and bets a faster rollout of vaccines will support a sooner and stronger than expected reopening. President Joe Biden said Tuesday the U.S. will have enough vaccines for all adults by the end of May, two months sooner than initially expected. 

In Texas Governor Greg Abbott ended the mask mandate and said all business can reopen in the state.

Tech, however, came under as investors continued to move out of higher-priced growth names that are less attractive in period of rising inflation in which a dollar today is more worth more than a dollar in the future.

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

Hewlett Packard Enterprise Co (NYSE:HPE), meanwhile, was unchanged despite reporting quarterly results that beat analysts' expectations on both the top and bottom lines, underpinned by the increasing number of companies making the shift to digital. 

Box (NYSE:BOX) was flat as its fourth-quarter results topped Wall Street estimates and the online storage company guided first quarter revenue to top $200 million for the first time.

In merger and acquisitions news, Las Vegas Sands (NYSE:LVS) said it would sell its Las Vegas properties to private-equity firms Apollo Global and VICI Properties (NYSE:VICI) for $6.25 billion. Las Vegas Sands was up about 3%

In other news, LYFT Inc (NASDAQ:LYFT) jumped more than 8% after company upgraded its outlook on a better-than-expected recovery in ridesharing demand.

Latest comments

if not now, then when? time to buy into tech now
Tech is king. Even the cyclicals and “value” companies need it to generate their revenue. Anyone retreating from it are halfwits
I agree, everything needs to utilize technology to maximize profits.  However valuation does matter and I have been hearing people saying a lot of things these days that reminds me of what I heard back around 2000, to the extent that it feels like deja vu.  Many of these tech companies are great companies, but that does not necessarily mean that their stocks are still great too at extreme valuations.  Unless their economic moat is completely invincible their outsize profit growth could be vulnerable in the future due to competition and these valuations are assuming great things for many years.  Rising interest rates also make their future money worth less.  It remains to be seen who the halfwits are at this point but I think this is all good to think about.
tech bubble go pop
oil bubble go pop
The cruise line, travel positive
Time to change the article or the title at least.
And the title changed. Some folks from the site read comments. Wow.
What I see is just a desperate need to push positive-looking headlines, based on... nothing and any temporary occasion, just to promote positive sentiment, to avoid the... unavoidable.
Yep, looks like a politically motivated assignment.
Oups, someone changed the title from "positive Dow" to "negative Dow", after the Dow turned negative eventually! The current title is not the original one.
what do you think about copper guys? good investment still?
Wait for a dip.
what chart is he looking at ? red everywhere...
With this institutional profit harvesting it seems crypto is a safer bet
Not sure you are looking at the charts! Everything is on fire sale today
My value ETFs SCHD, VTV, VOE, and VBR are making some nice gains today (so far).
Have a look at the Banks
 Headline says Dow higher.  At the time of publication, YM was flat to red :)
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