Stock Market Today Mid-Morning Updates
On Wednesday, the Dow Jones Industrial Average is up by 90 points. Today’s market moves came following a strong rebound on Tuesday. Investors are finding temporary relief in assurances from the Federal Reserve Chair Jerome Powell that the central bank would step in to rein in rising prices. He says that the U.S. economy is both healthy enough and in need of tighter monetary policy. Powell also says that he expects a series of interest rate hikes this year. Additionally, this also includes other reductions in the extraordinary help that the Fed has provided during this pandemic era.
In the biotech space, Biogen (NASDAQ: BIIB) shares sank by over 7% after Medicare agreed to only partially cover the company’s Aduhelm drug. The decision would restrict access to the first Alzheimer’s therapy approved in decades by the U.S. Food and Drug Administration. Ocugen (NASDAQ: OCGN) on the other hand, is up after a booster dose of its vaccine candidate Covaxin was shown to neutralize the coronavirus Omicron and Delta variants.
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are up by 0.94% on Wednesday while Microsoft (NASDAQ: MSFT) is also up 1.59%. Home Depot (NYSE: HD) and Nike (NYSE: NKE) are up 1.02% and 1.48% respectively today. Also, among the Dow 30, financial leaders like Goldman Sachs (NYSE: GS) and JPMorgan Chase (NYSE: JPM) are mixed.
Shares of electric vehicle (EV) leader Tesla (NASDAQ: TSLA) are up 1.11% on Wednesday. Rival EV companies like Rivian are also up 1.53% today while Lucid Group (NASDAQ: LCID) is up by 0.92%. Chinese EV leaders like Li Auto (NASDAQ: LI) and Xpeng Motors (NYSE: XPEV) are trading higher at 1.51% and 2.94% respectively.
Dow Jones Today: Stocks Rise As Investors Shake Off Inflation Data
Following the stock market opening on Wednesday, the S&P 500, Dow Jones, and Nasdaq are trading 0.37%, 0.35%, and 0.43%% higher respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) ticked higher at 0.36% Wednesday, while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also up by 0.43%.
Today, the Bureau of Labor Statistics released its December Consumer Price Index (CPI) readings, giving investors a treasure trove of data to look through. Inflation data showed that prices rose at a 7% year-over-year rate at the end of 2021. This marks the biggest rise since 1982. However, this matched consensus estimates, based on Bloomberg data, and increased from November’s already elevated 6.8% jump. The CPI is a gauge of prices across a broad spectrum of goods.
Federal Reserve officials largely attribute the rising inflation to pandemic-specific issues in which a shortage of workers has led to disrupted supply chains and empty store shelves. Fears about higher inflation have been well discussed in recent months and today’s CPI data shows that the rate of inflation also falls within analyst expectations. The CPI could also be an indicator for policymakers to embark on the first stages of tightening the most accommodative policy measures to steer through the pandemic.
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Didi Stock Surges As Company Eyes Hong Kong Listing; Chinese Tech Giants Following Suit
Didi Global (NYSE: DIDI) seems to be stealing the spotlight in the stock market today. This comes as reports suggest that the Chinese ride-hailing giant is considering a Hong Kong IPO. Despite its ongoing delisting from the New York Stock Exchange, DIDI stock is soaring by over 6% today. Accordingly, this is thanks to the company’s plans to offer a 1-for-1 swap for holders of its American Depositary Shares. In other words, owners of DIDI stock will receive Didi’s shares once they are trading in Hong Kong. By and large, with the supposed Uber (NYSE: UBER) of China making such a huge play, investors appear keen to get in on the action. This could especially be the case given the recent weakness in DIDI stock.
At the same time, there is also a notable upwards trend among other Chinese tech goliaths as well. As of today’s opening bell, Alibaba (NYSE: BABA), Weibo (NASDAQ: WB), and Baidu (NASDAQ: BIDU) are gaining by 4.53%, 5.27%, and 3.02% respectively. All in all, the movement in DIDI stock now is understandable. Sure, the initial concerns over regulatory pressures and its delisting may seem negative at face value. However, the company’s fundamentals as a leading ride-hailing player in the Chinese market are largely intact. Because of all this, investors may not want to overlook DIDI stock today.
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Apple Reportedly Making Play On MLB Weekday Package In Potential Push Towards Live Sports
Elsewhere, consumer tech giant Apple is seemingly looking to expand its operations into new markets. According to sources from the New York Post, the company is looking to deal with Major League Baseball (MLB). In detail, the report suggests that Apple is raring to acquire the rights to the MLB’s weekday package. Ideally, such a deal would see Apple TV+ being able to stream baseball games throughout the regular season. While the rights aren’t exclusive, it would mark a notable entry point for Apple into the live sports airing market.
For one thing, a potential push into sports could be a good move for Apple’s streaming division. As the competition in the streaming space continues to heat up amidst the pandemic, this is apparent. Commenting on all this is Lee Berke, CEO of LHB Sports, an advisory firm for the sports entertainment industry. Berke notes, “When you’re looking to develop a content strategy on any media platform, one of the quickest ways to do it, and expensive by the way, is to add sports.” If anything, MLB could be open to funding from the most valuable U.S. tech firm amidst offseason stoppage pressures. Nevertheless, this could see investors tuning their radars to AAPL stock today.
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