por admin » Vie Dic 16, 2022 10:25 am
Dow falls more than 300 points as Wall Street heads for back-to-back weekly declines
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Stocks were lower Friday as investors continued to sell into year-end on fears a recession is ahead next year because of the Federal Reserve’s unrelenting rate hiking.
The Dow Jones Industrial Average lost 375 points, or 1.13%. The S&P 500 fell 1.17%, while the tech-heavy Nasdaq Composite declined 0.75%. Trading could be especially volatile Friday with a large amount of options set to expire.
There are $2.6 trillion worth of index options set to expire, the highest amount “relative to the size of the equity market in nearly two years,” according to Goldman Sachs.
The sell-off was broad-based, with just 18 names in the S&P 500 trading in positive territory. The real estate and energy sectors were the biggest laggards, down 3% and nearly 2%, respectively.
Meanwhile, shares of Meta rose 5% after JPMorgan upgraded shares of the social media company to overweight from neutral.
Shares of Adobe outperformed after the design software firm posted fiscal fourth-quarter earnings and guidance that topped expectations. Shares rose 6%.
With these latest declines, the indexes are poised to notch a second consecutive week of losses. The S&P 500 is off more than 1% for the week and about 5% for the month of December as hopes for a year-end rally fizzle.
Stocks have been falling this week in the wake of the Federal Reserve’s 50 basis point interest rate hike on Wednesday — the highest rate in 15 years. The central bank said it would continue hiking rates through 2023 to 5.1%, a larger figure than previously expected.
“After gouging themselves on hopes for a Fed pivot, equity traders are experiencing indigestion from [Wednesday’s] FOMC statement, which reiterated Jerome Powell’s theme of ‘higher for longer,’” said John Lynch, chief investment officer for Comerica Wealth Management.
29 MIN AGO
JPMorgan upgrades Meta
Now is the time to snap up shares of Meta at a discount, according to JPMorgan.
The firm upgraded shares of the social media company to overweight from neutral and boosted its price target to $150 from $115 in a Dec. 16 note. That implies a nearly 30% upside from Thursday’s close.
“Meta has been impacted by Apple privacy changes, TikTok competition, Reels headwinds, heavy hiring & expense growth, an uncertain build-out of the metaverse, and macro pressures,” wrote analyst Doug Anmuth, adding that Meta has shed 65% this year, much worse than the broader market.