To begin their trading day, investors should be aware of the following key news items:
1. The hangover from the holidays
Following a four-week winning run, the markets rested on Monday. The 10-year Treasury yield fell from the 5% level it briefly reached in late October, but since then, stocks have surged.
2. E-boost
Following optimistic predictions for Cyber Monday and record Black Friday sales, e-commerce companies saw a spike in trade on Monday. Wayfair’s and Etsy’s stock ended the day higher by almost 7% and 3%, respectively. Online buying has a positive impact on software companies as well. Shares of Shopify, a business that offers technology to online retailers, closed almost 5% higher after the company revealed that merchants had recorded record-breaking $4.1 billion in sales.
3. Not too quickly
Regarding Amazon’s large robot vacuum purchase, the dust hasn’t settled yet. The European Union’s antitrust agency warned that Amazon’s proposed acquisition of iRobot poses competition issues, which caused shares of the Roomba maker to fall 17% on Monday. Amazon may be able to block or impede iRobot competitors’ access to its website, according to the European Commission, which is conducting an ongoing investigation into the $1.7 billion acquisition.
4. The Shein Stock Exchange
In order to go public in the US, fast-fashion retailer Shein has quietly filed. The company, whose most recent valuation was $66 billion, may be prepared to begin trading on public markets as early as next year, according to CNBC’s Gabrielle Fonrouge.
5. Investment from India
Foxconn Technology, an Apple supplier, is boosting its financial commitment in India. It announced in a securities filing that it will fund “operational needs” by investing over $1.5 billion in an undisclosed development project in India. Foxconn’s factories are an essential component of Apple’s iPhone production, but the company is trying to diversify away from major operations in mainland China, particularly in light of the huge production slowdown caused by Covid-19 lockdowns in that region. Foxconn currently has multiple projects in progress in India, including plants in the states of Telangana and Karnataka.
Source (CNBC)
