Wall Street Today | Drubbing in tech marks biggest new-year stock rotation

Moomoo Recap US wrote a column · Jan 5, 2022 07:54

Wall Street Today | Drubbing in tech marks biggest new-year stock rotation

Asian stocks look steady after U.S. tech selloff

Stocks in Asia look set to open steady Wednesday as investors fret about interest rates increases that dragged down U.S. stocks from a record and extended a decline in Treasuries.

Australian shares opened little changed. Futures ticked higher in Japan and dipped in Hong Kong. U.S. contracts were steady after the $NASDAQ 100 Index (.NDX.US)$ underperformed amid a selloff in technology shares and the $S&P 500 Index (.SPX.US)$ was little changed.

Drubbing in tech marks biggest new-year stock rotation since '95

Software and internet stocks sold off Tuesday, driving the $Vanguard Russell 1000 Growth ETF (VONG.US)$down 1.1%. Meanwhile, energy and financial shares surged, leading gains among those trading at lower multiples based on profits or book value.

The divergence was so wide that over the past two sessions, growth has trailed value by 1.5 percentage points. That's the worst underperformance for growth to start a year since 1995.

Warren Buffett makes over $120 billion on Apple's rise to $3 trillion, among his best bets ever

The 5% $Apple (AAPL.US)$ stake Berkshire Hathaway acquired in 2018 for $36 billion is now worth $160 billion as the tech giant hit the $3 trillion milestone. Warren Buffett's conglomerate has also enjoyed regular dividends from Apple, averaging about $775 million annually.

$Berkshire Hathaway-A (BRK.A.US)$'s Apple stake now makes up more than 40% of its equity portfolio.

Solid Santa Claus rally is signaling strong year for stocks

Santa Claus delivered a late gift to investors, with the S&P 500 index posting its biggest gain during the so-called Santa Claus rally in nine years, according to LPL Financial, potentially signaling a healthy 2022 for U.S. stocks.

Tuesday marked the official end to the "Santa Claus rally," a historically strong period for stocks that includes the last five trading sessions of the year and the first two trading days of the new year. Since 1969, the S&P 500 index has averaged a gain of 1.3% over the seven-day span, according to the Stock Trader's Almanac.

Oil advances as OPEC+ sees tighter market in first quarter

Oil trekked higher as global supplies are on track to be tighter than previously expected amid easing fears over the omicron variant's hit to global demand.

Futures in New York rose 1.2% while Brent crude settled at $80 a barrel for the first time since late November as OPEC+ stuck to its plan to lift output. Benchmark West Texas Intermediate crude reached a session high that was the strongest since November 26.

China launches app for its own digital currency as it looks to expand usage

China's central bank has launched a pilot version of a wallet app for the digital yuan in a push to expand its usage to more people. So far, China has done a number of trials around the country in the form of lotteries where users in certain cities have been given a small amount of the digital currency to spend.

But now more people in certain cities can download the app, highlighting how China is trying to get more people to use the digital currency.

Toyota dethrones GM to become America's top-selling automaker in 2021

$TOYOTA MOTOR CORP (TOYOF.US)$ outsold $General Motors (GM.US)$ in 2021, marking the first time since 1931 that the Detroit automaker wasn't the best-selling car company in the U.S.

The historic change occurred as Toyota was able to manage supply chain issues better than GM, including an ongoing shortage of semiconductor chips.

Adam Neumann's next act after WeWork includes apartment rentals

Adam Neumann is remaking himself as a residential kingpin after he was ousted from $WeWork (WE.US)$ in 2019, purchasing stakes in thousands of apartments across the U.S.

The billionaire and entities tied to him have purchased stakes in more than 4,000 apartments valued in excess of $1 billion, the person said. Many of the units are located in southern U.S. cities including Atlanta and Miami.

Source: Bloomberg, CNBC

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