Dow, Nasdaq, S&P slide 1% as tech, energy tumble

Why it’s important to have inflation hedges in your portfolio, according to wealth adviser

Kaltbaum Capital Management President Gary Kaltbaum, Gibbs Wealth Management President Erin Gibbs and Payne Capital Management senior wealth adviser Courtney Dominguez discuss the markets. 

U.S. equity markets were under pressure Tuesday morning as the sell-off in technology and growth stocks continued on inflation worries and what that might mean for Federal Reserve policy.  

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES34434.89-307.93-0.89%
SP500S&P 5004145.31-43.12-1.03%
I:COMPNASDAQ COMPOSITE INDEX13232.03039-169.83-1.27%

The Nasdaq Composite was trading lower by 2.12% while the S&P 500 and the Dow Jones Industrial Average were weaker by 1.26% and 0.86%, respectively. All three of the major averages declined Monday with both the S&P 500 and the Dow slipping off record highs as the tech-heavy Nasdaq lost more than 2.5%.  

The latest report on consumer prices is due out Wednesday, this as signs of inflation tick higher with copper trading around a record. Additionally,  Tyson Foods warned of rising prices on Monday. 

TickerSecurityLastChangeChange %
TSNTYSON FOODS78.32-0.43-0.55%
CPERUNITED STS COMMODITY INDEX FD COM UNIT REPSTG U S COPPER29.30+0.34+1.17%

In stocks, mega-cap technology stocks including Alphabet Inc., Amazon Inc., Apple Inc., Facebook Inc. and Microsoft Corp. were all lower. 

TickerSecurityLastChangeChange %
AMZNAMAZON.COM, INC.3,178.49-11.99-0.38%
AAPLAPPLE, INC.124.42-2.43-1.92%
FBFACEBOOK, INC.303.17-2.80-0.92%
MSFTMICROSOFT CORP.244.82-2.36-0.95%

Those companies are teaming up with chipmakers including Advanced Micro Devices Inc., Intel Corp. and Nvidia Corp. to form a new lobbying group seeking chip manufacturing subsidies amid the global shortage. 

TickerSecurityLastChangeChange %
INTCINTEL CORP.55.27-0.70-1.25%
NVDANVIDIA CORP.561.61-9.02-1.58%
AMDADVANCED MICRO DEVICES, INC.75.08-0.91-1.20%

Elsewhere, Tesla Inc. shares declined after Reuters reported the electric-car maker has paused plans to expand its Shanghai factory due to uncertainty caused by tensions between the U.S. and China.  

TickerSecurityLastChangeChange %
TSLATESLA, INC.611.04-18.00-2.86%

In earnings, Virgin Galactic Holdings Inc. shares were sharply lower after the space explorer said it was evaluating the timing of its next test flight which was originally scheduled for this month. The company reported an adjusted EBITDA loss of $55.9 million, down from a loss of $59.5 million in the prior three months, on zero revenue.

TickerSecurityLastChangeChange %
SPCEVIRGIN GALACTIC HOLDINGS INC.16.33-1.64-9.13%

Mall operator Simon Property Group Inc. raised its earnings forecast for the current fiscal year but said occupancy will not return to 2019 levels until 2023. 

TickerSecurityLastChangeChange %
SPGSIMON PROPERTY GROUP, INC.120.61-5.76-4.56%

L Brands Inc. will spin off its Victoria’s Secret brand after previously considering a sale. The deal, which will separate Victoria’s Secret and Bath & Body Works, is expected to close in August. 

TickerSecurityLastChangeChange %
LBL BRANDS INC.66.56-2.27-3.30%

In commodities, West Texas Intermediate crude oil fell 81 cents to $64.11 per barrel while gold fell $12.30 to $1,825.30 per ounce.

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Overseas markets were under significant pressure. 

European markets were lower across the board with Britain’s FTSE 100 tumbling 2.91%, Germany's DAX 30 losing 2.51% and France’s CAC 40 declining 2.35%.

In Asia, Japan’s Nikkei 225 plunged 3.08% and Hong Kong’s Hang Seng index slid 2.03% while China’s Shanghai Composite edged up 0.4%.

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