Tech Stocks Drove the Rally and Lead the Decline. Beyond Meat Is Bucking the Trend. -- Barrons.com
12:20 pm ET September 8, 2020 (Dow Jones) Print
By Teresa Rivas
Stocks are starting the shortened week with losses, and tech stocks are again taking the brunt of the beating.
The Dow Jones Industrial Average is down 1.8% in midday trading, while the S&P 500 is off 2.2%. The Nasdaq Composite is falling 3%, extending its losing streak from last week.
With hopes for a vaccine and anticipation of a return to a more normal life, investors may be rotating out of tech, which, until the recent rout, has surged during the coronavirus crisis. Still, a little perspective helps. The Nasdaq has hit more than 40 new highs in 2020, and the big tech names that have driven much of this year's rally are still up double-digits year to date.
"While the market suffered a significant setback last week, it was still left above the levels from only a month ago," writes Penn Mutual Asset Management's David O'Malley. "Given the extreme overbought condition of these names, and the retail speculation surrounding them, it was not surprising for a sharp pullback to occur without a clear catalyst. Stock prices have run ahead of fundamentals, but that doesn't mean the rally for equities has ended. For the next few weeks going into the election, I expect to see very choppy equity markets."
Among individual stocks, Beyond Meat (BYND) is up 6.5% after announcing a new production facility in China.
Boeing (BA) is down 4.9% in the wake of reports of more manufacturing problems for its 787 aircraft.
Moderna (MRNA) is down 10.3% following a bearish note from SVBLeerink, which cites increasing Covid-19 vaccine competition.
Tesla (TSLA) is off 14.7% as analysts dissect the electric-vehicle maker's stock after it wasn't included in the S&P 500.
Write to Teresa Rivas at teresa.rivas@barrons.com
(END) Dow Jones Newswires
September 08, 2020 12:20 ET (16:20 GMT)
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