Stocks were mixed in early trading as U.S. bond yields dropped below 1.4% and investors digested China’s delisting of Didi’s app and its implications for that nation’s U.S.-listed stocks.
The S&P 500 has fallen 0.5%, while the Dow Jones Industrial Average dropped 284.75 points, or 0.8%, and the Nasdaq Composite has risen 0.1%. Oil prices, after gaining early, have fallen 0.8% to $74.54 after the OPEC+ meeting collapsed without a deal. The 10-year U.S. Treasury yield fell 0.072 percentage point, to 1.36%.
Shares of Chinese ride-sharing firm Didi (DIDI) have tumbled 22% after it was removed from app stores in China over data security concerns. Full Truck Alliance (YMM) has slumped 19%, and Kanzhun (BZ) has dropped 9.3% after their apps were also deleted. Perhaps not unrelated, Weibo (WB) jumped about 40% on reports it’s planning to go private, though the stock is up only 14% after the company denied the reports. The actions against Didi raise many questions for investors invested in U.S.-listed Chinese stocks. “This action could pose big risks for other Chinese listing candidates in the US that may face similar questions over the way they store data,” write Gavekal’s Ernan Cui & Thomas Gatley.
Pfizer (PFE) has fallen 1.4% on reports that its vaccine has lost some of its effectiveness in Israel.
Virgin Galactic (SPCE) has jumped 7.2% despite getting downgraded to Neutral from Buy at UBS.
American Express (AXP) has risen 1% after getting upgraded to Buy from Neutral at Goldman Sachs.
Ingersoll Rand (IR) has fallen1% after getting upgraded to Buy from Neutral at Goldman Sachs.
Hologic (HOLX) has risen 1.3% after getting upgraded to Outperform from In Line at Evercore ISI.
Write to Ben Levisohn at [email protected]
