Futures are mixed ahead of market open on Wednesday, with rising US Treasury yields dealing a blow to tech and luxury stocks. Higher bond yields make equities a less attractive investment, as they have to be more competitive against increasing returns offered by bonds.
Even so, carmakers were the top story in equities, with new sales data and electric vehicle ventures being the talk of the town.
Data released on Tuesday showed a decline in US manufacturing activity in December, though this was partially attributed to a drop in backlog demand. Even so, the reading fell short of expectations. Job market news was similarly sobering for investors, with data showing that new employment openings declined in November even though workers are quitting jobs at record levels.
This isn't anything like the terrible news seen during much of the pandemic, but it has given investors cause for thought after a strong start to the New Year.
| NASDAQ | S&P 500 | BITCOIN |
|---|---|---|
| 15,622.72 (-1.33%) | 4,793.54 (-0.06%) | 46,343.35 (-0.73%) |
Here are some of Wednesday’s trending stories:
Ford (NYSE: F) has seen its share price jump after the company confirmed it had trounced its production target for its new electric pickup truck, which is set to be available for consumers in the coming Spring.
In other vehicle news, General Motors (NYSE: GM) has lost its spot as the top-selling automaker in the US. The company had held the title for 90 consecutive years, but 2021 saw Toyota (NYSE: TM) overtake with sales of 2.3 million in the US.
Beyond Meat (NASDAQ: BYND) has confirmed that its plant-based ‘chicken’ will be available at American KFC locations from the start of next week. The move is part of a deal with Yum! Brands (NYSE: YUM) which will also see the company’s products feature at Taco Bell.
Pinterest (NYSE: PINS) stock has been hit by a downgrade to ‘neutral’ from Guggenheim, which cited a drop in the company’s userbase.
Sony (NYSE: SONY) has revealed an interest in the electric vehicle space, with the electronics giant unveiling a new EV prototype and announcing plans to launch an EV company in the coming months.
Here is some of the major news coming out of Asia:
Tencent (HKG: 0700), Alibaba (HKG: 9988) and Billibilli (NASDAQ: BILI) have been fined by Chinese regulators for failing to report deals, according to Reuters.
Gaming company Tencent has also sold a significant portion of its interest in Singaporean e-commerce specialist Sea (NYSE: SE), raising around $3bn.
Also in the realm of e-commerce, Shanghai-based Pinduoduo (NASDAQ: PDD) dropped as it followed the general trend of US-traded Chinese stocks. This downward move comes as China’s regulators unveil further obstacles for companies looking to publicly list abroad.
These are some of today’s big crypto developments:
Bitcoin (BTC) has been given a boost by a major player, with analysts from Goldman Sachs stating that the currency could hit $100,000 as investors shift their attention from gold.
NFT marketplace OpenSea has been valued at over $13bn as it raised $300m in its series C funding round.
Veritree, a platform on the Cardano (ADA) blockchain, has partnered with electronics giant Samsung in a climate protection effort which aims to protect the growth of around two million new and existing trees in Madagascar.