Stock Market Today Mid-Morning Updates
On Monday, the Dow Jones Industrial Average is down by 115 points. On the Russia-Ukraine war, President Volodymyr Zelenskyy says that his government is prepared to discuss adopting a neutral status as part of a peace deal with Russia. “Security guarantees and neutrality, non-nuclear status of our state. We are ready to go for it. This is the most important point,” Mr. Zelensky said in the 90-minute video call. Over the weekend, President Joe Biden rallied NATO allies and international pressure against Putin over his invasion of Ukraine.
Today, Coinbase (NASDAQ: COIN) is up by over 5% after reports that it is near a deal to buy 2TM, the parent company of Brazillian cryptocurrency brokerage Mercado Bitcoin. The news site reporting this deal said it could be closed by the end of April. AMC (NYSE: AMC) CEO Adam Aron told Reuters today that the company would also strike more transformational deals, following its $27.9 million investment in mine operator Hycroft Mining (NASDAQ: HYMC).
Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are down by 0.27% today while Microsoft (NASDAQ: MSFT) is up by 2.16%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading mixed on Monday. Among the Dow financial leaders, Visa (NYSE: V) is up by 0.82% while Goldman Sachs (NYSE: GS) is down by 0.77%.
Shares of EV leader Tesla (NASDAQ: TSLA) are up by 6.17% on Monday. Rival EV companies like Rivian (NASDAQ: RIVN) are also up by 2.48%. Lucid Group (NASDAQ: LCID) is up by 1.21% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) opened mixed today.
Dow Jones Today: Biden Expected To Announce New Tax and Oil Prices Sink On Weak Demand Worries.
Following the stock market opening on Monday, the S&P 500 and Nasdaq are trading higher at 0.02% and 0.48% respectively. The Dow, however, is trading lower at 0.33% today. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is up by 0.54% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is down by 0.02%.
The 10-year Treasury yield hits a new pandemic-era high at almost 2.45%. This comes as growing expectations for more aggressive interest rate hikes have been pushing bond yields higher. In fact, the 5-year and 30-year Treasury yields today inverted for the first time since 2006, raising fears of a possible recession.
Both West Texas Intermediate and Brent crude oil prices are down by roughly 5% today as traders are worried about weaker fuel demand in China after Shanghai launched a two-stage Covid lockdown. West Texas Intermediate crude currently trades at $105.76 per barrel. President Biden is also expected to propose a new minimum tax that would largely target billionaires when he unveils his 2023 budget. The so-called Billionaire Minimum Income Tax would assess a 20% minimum tax rate on U.S. households worth more than $100 million.
[Read More] Top Stock Market News For Today March 28, 2022
Tesla Stock Gains Momentum Following News Of Stock Split
In the news today, we have a goliath in the electric vehicle (EV) industry, Tesla. Notably, the company is considering another stock split. This news follows a filing with the Securities and Exchange Commission (SEC). In the SEC document, Tesla states that it is aiming to pay a stock dividend to shareholders via the split. For one thing, some would argue that a stock split by Tesla would be a strategic play now. This could be the case as TSLA stock is holding above the $1,000 mark even after recent year-to-date losses. This with the addition of a possible stock dividend would serve to attract a broader array of investors overall.
Not to mention, TSLA stock, in the larger scheme of things, continues to gain as general EV adoption grows. To put things into perspective, we could look at TSLA stock’s performance since the company’s last stock split. On August 31, 2020, Tesla initiated a 5-for-1 stock split. Since then, the company’s shares have more than doubled in value. Ideally, this could suggest that investors are keen to invest in TSLA stock for the long run. For now, Tesla is planning to bring the topic up at its upcoming annual shareholder meeting.
Even as the company deals with short-term production headwinds in China, Tesla continues to lead the EV industry. Worth mentioning, it recently celebrated the grand opening of its Giga Berlin factory in Germany. Safe to say, all this would serve to fuel investor hype around TSLA stock now.
[Read More] 3 Metaverse Stocks For Your Late March 2022 Watchlist
POLY Stock Surges On Announcement Of Takeover From HP Inc.
Another top gainer making stock market headlines today is Poly (NYSE: POLY). By and large, this is mostly thanks to the company agreeing to a takeover offer from HP (NYSE: HPQ). Through the current agreement, HP will be acquiring Poly in an all-cash transaction for $40 per share. This would value Poly at about $3.3 billion, including its net debt. With POLY stock trading at the $26 mark before today’s market open, investors are understandably eager to hop on the stock now. So much so that POLY stock is up by over 48% following the news.
Explaining the merits of the purchase is HP. The company writes, “The acquisition accelerates HP’s strategy to create a more growth-oriented portfolio, further strengthens its industry opportunity in hybrid work solutions, and positions the company for long-term sustainable growth and value creation.” Overall, this would be HP referring to Poly’s comprehensive portfolio of audio communications equipment. The likes of which cater to businesses and consumers alike, ranging from unified communications applications to mobile use and gaming. According to HP CEO Enrique Lores, the combination makes for a “leading portfolio of hybrid work solutions across large and growing markets.”
All in all, the two companies expect to close the deal by the end of 2022. While POLY stock may be the headliner, inventors may not want to overlook HPQ stock as well. Namely, HP is looking to adapt to the shifting work landscape that is increasingly focusing on hybrid office arrangements.
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