Tech-heavy Nasdaq ends higher after choppy session
Take-Two is buying Zynga in a deal valued at $12.7B
Former Kansas City Federal Reserve President and CEO Thomas Hoenig discusses U.S. monetary policy amid high inflation.
U.S. stocks ended the session mixed and off the worst levels of the day in a choppy trading session as bond yields ticked higher.
The Nasdaq Composite, which sparked the selling, ended the session with modest gains after being down over 2%. The S&P 500 closed down 0.14% and the Dow Jones Industrial Average fell 0.4% or over 163 points after trimming a 500+ point slide.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 41794.6 | -257.59 | -0.61% |
| SP500 | S&P 500 | 5712.69 | -16.11 | -0.28% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18179.984429 | -59.93 | -0.33% |
The 10-Year Treasury yield also pulled back to 1.7% from a 12-month high.
STOCKS FALL, BOND YIELDS RISE AS INVESTORS GET TASTE OF 2022
Tech names Apple, Microsoft and Google all reversed losses, while Amazon closed fractionally lower.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 222.01 | -0.90 | -0.40% |
| MSFT | MICROSOFT CORP. | 408.46 | -1.91 | -0.47% |
| AMZN | AMAZON.COM INC. | 195.78 | -2.15 | -1.09% |
| GOOGL | ALPHABET INC. | 169.24 | -2.05 | -1.20% |
In deal news, Take-Two announced plans to buy Zynga, the maker of the popular FarmVille game, for $12.7 billion, a 64% premium to Friday's closing price.
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"We are thrilled to announce our transformative transaction with Zynga, which significantly diversifies our business and establishes our leadership position in mobile, the fastest growing segment of the interactive entertainment industry," said Strauss Zelnick, Chairman and CEO of Take-Two in the deal announcement.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TTWO | TAKE-TWO INTERACTIVE SOFTWARE INC. | 162.93 | -0.85 | -0.52% |
| ZNGA | NO DATA AVAILABLE | - | - | - |
In pharma news, Pfizer confirmed it may have a vaccine specifically to treat omicron by March.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PFE | PFIZER INC. | 27.76 | -0.33 | -1.17% |
| BNTX | BIONTECH SE | 108.97 | -2.51 | -2.25% |
Lululemon shares slipped after the yoga retailer said the virus impacted holiday sales.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LULU | LULULEMON ATHLETICA INC. | 318.13 | -3.04 | -0.95% |
"We started the holiday season in a strong position but have since experienced several consequences of the Omicron variant, including increased capacity constraints, more limited staff availability, and reduced operating hours in certain locations. I am proud of how our teams continue to deliver for our guests, and we are excited about what the future holds for lululemon" said CEO Calvin McDonald.
As a result, sales will now be at the low end of the $2.125 billion to $2.165 billion range.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND - USD ACC | 74.29 | +2.27 | +3.15% |
| BNO | UNITED STATES BRENT OIL FUND - USD ACC | 29.98 | +0.92 | +3.17% |
In commodities, oil slipped 0.8% to $78.23 per barrel.
The economic calendar is light but will pick up on Wednesday with the release of the Consumer Price Index for December and the Producer Price Index the following day.
Separately, Federal Reserve Chairman Jerome Powell will be on Capitol Hill Tuesday for his re-nomination hearing.