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Wall Street Opens Lower as ADP, Biden Remarks Dent Euphoria; Dow Down 125 Pt

Stock MarketsDec 02, 2020 09:32AM ET
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© Reuters.

By Geoffrey Smith 

Investing.com -- U.S. stock markets opened lower on Wednesday as the vaccine-fueled rally of recent days ran out of steam, President-elect Joe Biden cooled hopes for an early end to the trade war with China, and fresh data indicated that the economy slowed in November under the pressure of the latest wave of the pandemic. 

By 9:45 AM ET (1445 GMT), the Dow Jones Industrial Average was down 126 points or 0.4% at 29,698 points. The S&P 500 was down 0.4% and the Nasdaq Composite was also down 0.4%.

Payrolls processor ADP reported that private-sector payrolls rose by only 307,000 in the month through mid-November, well below the 410,000 gain expected. On a brighter note, October’s numbers were revised up to 404,000 from 365,000.

The numbers strike a downbeat tone ahead of the official government labor market report on Friday.

The New York Times had earlier cited Biden as saying in an interview that he would leave the existing import tariffs on Chinese goods in place for now and signaled a hard line against Chinese abuses in the field of trade and industrial espionage. The comments, which were at odds with the non-confrontational approach taken while he was Vice President, suggested that there will be no quick improvement in relations between the world's two largest economies. 

The momentum of the Trump administration's more hardline policy was in evidence as the House of Representatives prepared to pass a bill requiring Chinese companies to delist from U.S. exchanges if they fail to satisfy U.S. audit requirements.

The bill's arrival in the House triggered a sell-off in some Chinese tech stocks that had in any case appeared ripe for profit-taking after a violent rally in recent weeks. Electric car make Nio's (NYSE:NIO) ADRs fell over 12% at the open but recovered to be down only 6.1% by 9:45 AM ET.  Other EV companies' ADRs also suffered, with Li Auto (NASDAQ:LI) falling 4.8%, Xpeng (NYSE:XPEV) falling 4.6% and China Automotive (NASDAQ:CAAS) falling 8.1%.

Tesla (NASDAQ:TSLA) stock, meanwhile, fell 3.9% after an internal e-mail from Elon Musk claimed that the stock could fall sharply if the company failed to get its costs under control. 

"Investors are giving us a lot of credit for future profitability but if, at any point, they conclude that’s not going to happen, our stock will immediately get crushed like a souffle under a sledgehammer!” CNBC reported the e-mail as saying. 

Tesla stock is still within touching distance of the all-time high it hit earlier this week in anticipation of its inclusion in the S&P 500. 

 

Wall Street Opens Lower as ADP, Biden Remarks Dent Euphoria; Dow Down 125 Pt
 

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Comments (8)
loi quach
loi quach Dec 02, 2020 7:44PM ET
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Biden & the chinese are pals! There’s nothing that can’t be fixe with a few milions to the Biden. The chinese can buy this country for a fee milions dollars. American are so gulible! We chinese owns the USA!!!
Sun Moon
Sun Moon Dec 02, 2020 12:34PM ET
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"... an early end to the trade war with China ..." Ponder this fragment for a minute.  Realize the incredible bias inherent in it. It comes down to this:  It's a forgone conclusion, a GIVEN, that revision of US trade policies towards China constitutes a "trade war" that the next President is expected to END.
James Pattison
James Pattison Dec 02, 2020 12:21PM ET
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I just surprised what biden said could be understood... 25th Amendment any day now
James Bell
James Bell Dec 02, 2020 12:18PM ET
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the first of many biden remarks that will dent euphoria.
king michael
king michael Dec 02, 2020 12:07PM ET
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It is amzn/fb/google/apple ... companies steal all the jobs by outsource jobs to other countries. It is FB/Tweet/Goolgle to create the platforms for people to use fake and malicious news to cause social disabilities. Those companies have to be heavily taxed and disassembled for  other firms and new entrepreneurs to compete for resources, to create new jobs and to form a  diversified tech evolution environment.
Simone Dozza
Simone Dozza Dec 02, 2020 11:37AM ET
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oh don't worry, markets just recovered and as usual will ignore any signal from reality, staying well far away from any real fundamental. COVID cases surging, no stimulus, I'm ok if amazon or tech will go up hoping for a boost from the situation but that any stock recover and go green even if the company is going through months and months of economic struggles (solar and hydrogen stock, travel, car makers).... well this is insane...
Jay Jung
Jay Jung Dec 02, 2020 10:41AM ET
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Obama, where are you?if you are patriot, how come the rumors are around? Really are you in jail? Show up on public and prove it.
Kaveh Sun
Kaveh Sun Dec 02, 2020 10:36AM ET
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China Biden is not #. The Chinese r smart. He will slowly reduce it to zero by the end of his term.
 
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