US Stocks Fall as Coronavirus Fears Weigh Again
5:03 pm Friday, November 19th, 2021
Stocks fell after hawkish remarks from Federal Reserve officials and concern about another wave of the pandemic in Europe.
Austria’s lockdown will start Monday and last for a minimum of ten days, and reports indicate that Germany could soon follow suit. The announcement has stoked growth concerns, which are playing out in the divergence between growth/value stocks, weaker oil prices , and lower Treasury yields (10-yr yield is down six basis points to 1.53%).
The S&P 500 energy sector is by far the weakest link with a 3.5% decline. No other sector is down more than 0.6%. The information technology (+1.0%) and utilities (+0.6%) sectors, on the other hand, are outperforming the benchmark index.
Mega-caps like Apple (AAPL), Facebook (FB), and NVIDIA (NVDA) were up noticeably, helped by the lower interest rates and an appreciation for their dependable earnings growth amid secular tailwinds.
Intuit (INTU 689.17, +60.23, +9.6%) is a notable standout after beating top and bottom-line estimates and providing upside guidance for fiscal Q2 and FY22. Applied Materials (AMAT), Workday (WDAY), and Ross Stores (ROST) have underwhelmed investors with their earnings reports.
Separately, the House passed the $1.85 trillion Build Back Better Act, which the CBO estimates would add approximately $160 billion to the budget deficit over ten years when accounting for tax enforcement revenue. Reports indicate that the bill will need to be amended in the Senate to win over support from moderates.
Also noteworthy, the FDA extended the emergency use authorization of Pfizer’s (PFE) and Moderna’s (MRNA) COVID-19 booster shots for adults 18 years and older.
Investors did not receive any economic data.
