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Nasdaq ekes out gain in late session comeback

Stock MarketsJan 10, 2022 08:36PM ET
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© Reuters. FILE PHOTO: Raindrops hang on a sign for Wall Street outside the New York Stock Exchange in Manhattan in New York City, New York, U.S., October 26, 2020. REUTERS/Mike Segar/File Photo

By Sinéad Carew and Caroline Valetkevitch

(Reuters) - Wall Street's three major indexes staged a late-session comeback on Monday as the Nasdaq managed to eke out a tiny gain and investors swooped in to hunt for bargains, while the S&P 500 and the Dow Jones Industrial Average finished well above their session lows.

After falling almost 3% earlier in the day and as much as 10.37% below its intraday record level reached on Nov. 22, the technology-heavy Nasdaq pointed sharply higher to regain all its losses for the day in afternoon trading.

While investors spent the morning fretting about rising bond yields and what this week's inflation data might mean for U.S. Federal Reserve monetary policy tightening, others took advantage of earlier nerves to buy the dip.

"We've gotten to the point where you wonder if the roller coaster has peaked and is heading straight down. But fundamentally there's a lot of buyers in this market buying on the dip," said Rick Meckler, a partner of Cherry Lane Investments, a family investment office in New Vernon, New Jersey who attributed much of the afternoon strength to retail investors buying favorite stocks such as Tesla (NASDAQ:TSLA).

Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago also attributed the late session comeback to dip-buyers looking at U.S. Treasury yields fall from their peaks of the day.

"Some of the tech names are off 5 to 10 percent or more, and people are looking at that and going that looks pretty good - time to snap them up," said Nolte.

"The other thing though to keep an eye on is what happens to interest rates because that has really been what's been dragging technology. We saw little bit of a reversal late in the day in (Treasury yields). They came down just a touch and that was a little bit of a green light for tech investors," he said.

The Dow Jones Industrial Average fell 162.79 points, or 0.45%, to 36,068.87, the S&P 500 lost 6.74 points, or 0.14%, to 4,670.29 and the Nasdaq Composite added 6.93 points, or 0.05%, to 14,942.83.

After starting the day among the biggest laggards, the S&P technology index managed to eke out a tiny gain of 0.1%, behind the healthcare sector which closed up 1% and ahead of communications services which, rising 0.02%, was the session's only other gainer among the 11 major industry sectors.

The biggest decliners on the day were industrials which closed down 1.2% and materials which dropped 0.99%.

Traders have ramped up their rate hike expectations since the Fed's minutes from the December meeting appeared to signal an earlier-than-expected rate rise.

Goldman Sachs (NYSE:GS) said it expects the Fed to raise rates four times in 2022, compared to its previous forecast of three.

Earlier the benchmark 10-year Treasury yield rose to its highest level in nearly two years on Monday.

After falling as much as 4.6% earlier in the session, Nasdaq heavyweight Tesla made a dramatic turnaround to close up 3%.

Meckler said retail investors appeared to flood back into the stock which had suffered after Chief Executive Elon Musk tweeted on Friday that the electric carmaker will raise the U.S. price of its advanced driver assistant software.

Nike (NYSE:NKE) shares closed down 4.2% after HSBC downgraded the stock to "hold."

Declining issues outnumbered advancing ones on the NYSE by a 2.04-to-1 ratio; on Nasdaq, a 1.97-to-1 ratio favored decliners.

The S&P 500 posted 38 new 52-week highs and 5 new lows; the Nasdaq Composite recorded 69 new highs and 609 new lows.

On U.S. exchanges 12.15 billion shares changed hands compared with the 10.55 billion average for the last 20 sessions.

Nasdaq ekes out gain in late session comeback
 

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Comments (22)
Marco cuevas
Marco cuevas Jan 11, 2022 7:04AM ET
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Omicron defeated, Jobs are back, all is rosey...what a racket.
Chris Hall
Chris Hall Jan 10, 2022 10:32PM ET
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He who is not contented with what he has, would not be contented with what he would like to have.Socrates
William Bailey
William Bailey Jan 10, 2022 4:15PM ET
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Woulnt gave been kept afloat by the 400 billion released from the “ backstop” repo market the scamming Fed set upIn 2020 kerpimg the corruption going!!!?
William Bailey
William Bailey Jan 10, 2022 2:01PM ET
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Without free cash game over! Fed out of options and banks are dome with little reward and higher and higher risk of defaults
Dave Jones
Dave Jones Jan 10, 2022 2:00PM ET
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probably be up by the end of the day
bret lafrance
bret lafrance Jan 10, 2022 12:57PM ET
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Wall Street isn’t “tumbling” they are scalping…
Mitchel Pioneer
Mitchel Pioneer Jan 10, 2022 12:14PM ET
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Nothing like the flagrant, 11AM fraud rolling out in broad daylight.  Remarkable how "rallies" don't reverse at 11AM.  Criminally manipulated joke.
Dmitry Saverchenko
Dmitry Saverchenko Jan 10, 2022 12:14PM ET
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I took a heavy hit. We keep breaking support. What to do?
Strat Afro
Strat Afro Jan 10, 2022 12:01PM ET
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Stock market investors cash + credit combined= 450 $ billions. Stock investors ' Margin debts = 900$ billions. Question, how soon before 📞 come in ? 📞 Joe are you there? Date of birth and last 4 digits of Social.....
Strat Afro
Strat Afro Jan 10, 2022 12:01PM ET
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Joe... we're selling to cover margin. The choice is yours. Wire in more 💵 or TSLA goes.
bret lafrance
bret lafrance Jan 10, 2022 12:01PM ET
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Half the margin folk are shorting and doing very well right now.
bret lafrance
bret lafrance Jan 10, 2022 12:01PM ET
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tesla barely got dented, the trash stocks are usually the last to go down and the first to recover
Danyel Smecherul
Danyel Smecherul Jan 10, 2022 11:39AM ET
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Help me
Steffen vdm
Steffen vdm Jan 10, 2022 11:37AM ET
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Nasdaq 7% down in one month, with the knowledge that rate hikes are due. Looks like the correction will end soon, sideways for a while and then to the moon again
Ronald Warren
Ronald Warren Jan 10, 2022 11:37AM ET
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NASDAQ went up 100% last 3 years. Not even near done with the selling!
Cathy Bartlett
Cathy Bartlett Jan 10, 2022 11:27AM ET
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Weimar hyperinflation all over again. Pure lies!! If they jack up the rates the economy will implode!! Buy Gold/Silver and Bitcoin.. The same propaganda was pushed on the Weimar Republic. Don't believe a word they say...
Cathy Bartlett
Cathy Bartlett Jan 10, 2022 11:24AM ET
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Weimar Republic all over again! Same lies, threats, and smoke & mirrors.. If they jack up the rates to tamper inflation the economy will collapse!! Weimar Weimar Weimar all over again. Buy Gold/Silver & Bitcoin like crazy...
Harshal LN
Harshal LN Jan 10, 2022 11:08AM ET
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USA MARKET IS OVERVALUED
Critical Riff
Critical Riff Jan 10, 2022 11:08AM ET
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it was overvalued even before the pandemic. People cry at single digit corrections, but 50%? 75%? Imagine this, you bought at 4800 only to hold it when it falls to 800
Marco cuevas
Marco cuevas Jan 10, 2022 11:06AM ET
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....and the racket continues.
Ron Love
Ron Love Jan 10, 2022 10:07AM ET
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6,000,000% down. Nasdaq going negative like Brent futures in 2020. 🤣🤣🤦‍♂️
Casador Del Oso
Casador Del Oso Jan 10, 2022 9:57AM ET
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Have we forgotten about our other problems? Virus, inflation, interest rate hikes, tax increases, and lower profits.
Stan Smith
Stan Smith Jan 10, 2022 9:46AM ET
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Hmmm.. now about that tapering nonsense? lol
Mitchel Pioneer
Mitchel Pioneer Jan 10, 2022 9:41AM ET
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Here comes the cavalry, right on que...What a joke...
Kailesh Mistry
Kailesh Mistry Jan 10, 2022 9:39AM ET
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Wall Steet elite just cleaning out the plebs as usual. Thats how the game works time after time.
The Engineer Trader
The Engineer Trader Jan 10, 2022 9:12AM ET
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OMG
john dislias
john dislias Jan 10, 2022 9:10AM ET
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Haha the market have already priced rates hikes
Mitchel Pioneer
Mitchel Pioneer Jan 10, 2022 9:10AM ET
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Yes, everything is "priced in" to the laughingstock of the financial news, unless it's good news.
Critical Riff
Critical Riff Jan 10, 2022 9:10AM ET
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the next 3 financial crashes have already been priced in. next target 30k
Ron Love
Ron Love Jan 10, 2022 8:13AM ET
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So sell everything and make sure hedge funds and investment firms get cheap prices?
John Whitfield
John Whitfield Jan 10, 2022 8:13AM ET
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they gotta end their losing streak. second or third year running hedge funds have been outperformed.
Ron Love
Ron Love Jan 10, 2022 8:13AM ET
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John Whitfield Media to retail: “Buy high and sell low.”
 
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