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Author Message   Entrepreneur Kurra Bewarse Username: Entrepreneur Post Number: 3905 Registered: 05-2011 Posted From: 24.164.46.35 Rating: N/A Votes: 0 Posted on Monday, January 10, 2022 - 3:07 pm:    Investors remain averse to risk assets The major indices are down between 1.3% (Dow Jones Industrial Average) and 2.2% (Nasdaq Composite) amid a weakening technical posture, which has the Nasdaq below its 200-day moving average (14689) and the S&P 500 (-1.6%) below its 50-day moving average (4675). Primary concerns remain rising rates and the Fed's potentially aggressive plans for policy normalization, which have been exacerbated by the downside momentum. The 10-yr yield, however, is currently unchanged at 1.77% after touching 1.81% intraday. All 11 S&P 500 sectors are trading lower, led by the information technology (-2.2%) and consumer discretionary (-2.6%) sectors with losses over 2.0% amid weakness in the mega-caps. The health care sector (-0.1%) outperforms on a relative basis with a 0.1% decline. It's important to note that value/cyclical stocks are heading lower, too, as investors de-risk amid expectations for further downside. The Russell 3000 Value Index is down 1.1%. The CBOE Volatility Index has risen 18.3% to 22.20, reflecting increased hedging interest. Other negative factors include downside Q4 revenue guidance from lululemon athletica (LULU 333.03, -22.18, -6.2%) and a report from the Washington Post indicating that Senator Manchin (D-WV) is no longer interested in passing any legislation resembling the Build Back Better Act. The LULU price action is serving as a reminder that growth stocks still have further downside risk if they don't live up to earnings expectations. That's partially what Piper Sandler was thinking when it downgraded Airbnb (ABNB 156.03, -10.08, -6.1%) to Neutral from Overweight today. Take-Two Interactive (TTWO 139.72, -24.88, -15.2%) is tumbling 15% on concerns that the company is overpaying for its acquisition of Zynga (ZYNG 8.55, +2.55, +42.5%). The deal gives Zynga a total enterprise value of approximately $12.7 billion. Efforts to buy the dip have been sparse, but some analysts on Wall Street are expecting a change of fortune due to a view that the market is looking oversold on a short-term basis. The Nasdaq is down 7.7% in less than five sessions. Today's economic data was limited to Wholesale Inventories, which increased 1.4% m/m in November (Briefing.com consensus 1.2%) following a revised 2.5% increase (from 1.2%) in October.