Given the widespread shock and horror in the Capitol crowd last week, which could lead to Trump’s impeachment just days before he stepped down, some companies clearly feel they have no choice but to act.
But investors seem nervous about the consequences. Twitter shares fell more than 6% on Monday, while Facebook shares fell 4%.
Platforms are increasingly unpopular with Republicans, who are angered by Trump’s silence, and Democrats, who think the sites should have acted sooner, according to Hargreaves Lansdown stock analyst Nicholas Hyett. With eyes on customer bases and continued regulatory pressure, this is a difficult place to be.
“They are increasingly and inevitably stuck in the middle of this political ping pong, which is just not good,” said Hyett.
What was not said: about 74 million Americans voted for Trump.
In the past few days, veteran investors Carl Icahn and Jeremy Grantham have warned of a Wall Street bubble, triggering another round of asset price debates that coincided with political instability in Washington.
Investors continue to inject money into health insurance stocks
Wall Street made big bets on health stocks in 2020. Now, while the pandemic continues to escalate, they are doubling down.
See here: The Health Care Select Sector SPDR Fund, a publicly traded fund that tracks the sector, grew by almost 4% this year, while the S&P 500 gained a more modest 1.2%, despite reaching a series of records.
Some of these increases are linked to the launch of the Covid-19 vaccine.
Investors are also eyeing research that has nothing to do with the pandemic. Eli Lilly’s stock soared nearly 12% on Monday, making it the best-performing stock on the S&P 500, after the company released promising initial results for its experimental Alzheimer’s drug.
On the radar: Bespoke Investment Group points out that JPMorgan’s annual health conference, which often coincides with strong stock performance as companies promote investors, is taking place almost this week. This can open the door for additional gains.
The next automaker crisis is a global chip shortage
Details, details: the Louisville plant employs 3,800 workers per hour, who will receive about 75% of their normal wages during a week’s breakdown, reports my CNN business colleague Chris Isidore. He rides the Ford Escape and the Lincoln version of that SUV, the Corsair.
It is the first stoppage due to an industry-wide problem that is expected to persist for months.
Automakers cut back on orders for computer chips early last year, when Covid-19 slowed auto sales and production because of the temporary shutdown of factories. When car sales recovered earlier than expected, it left producers struggling.
The problem was exacerbated by the growing demand for laptops and other home electronics during the lockdown era, according to Kristin Dziczek, vice president of research at the Automotive Research Center.
The average car has between 50 and 150 chips, she said. All are needed to proceed with the vehicle assembly.
UBS analysts expect all major automakers to be affected by bottlenecks during the first three months of the year, with Volkswagen, Fiat Chrysler, Toyota and Nissan also drawing attention to supply chain problems.
Next
The data released on Tuesday include the NFIB’s small business optimism index for December and job openings opened in November.
Tomorrow: US inflation data for December will reveal the state of consumer prices, as policymakers prepare to discuss another round of stimulus spending.