Stock Market Today: Stocks Limp Into the Weekend
COVID worries, including a not-glowing reception to Johnson & Johnson vaccine, helped drag the major indices lower Friday
The market swung back to sizable losses Friday as dazed investors digested ongoing COVID concerns, as well as the continuing saga in GameStop (GME, +67.9%) and its potential side effects on the market.
Johnson & Johnson (JNJ, -3.6%) said its single-dose COVID-19 vaccine is 66% effective against the virus, according to early Phase 3 trial data, but that it is less effective in test locations that are dealing with variant strains.
Meanwhile, traders inspired by the social app Reddit continued to pressure highly shorted stocks, which could be rattling the broader indices. LPL Financial chief market strategist Ryan Detrick says, "We do not believe they represent a sign of a broader market bubble or indicate a major correction is forthcoming ... [but] institutions covering shorts at sizable losses may be removing capital from some big-cap names."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Chevron (CVX, -4.3%) and Dow (DOW, -4.6%) were among some of Friday's biggest losers for the Dow Jones Industrial Average, which declined a full 2.0% to 29,982, putting it a similar percentage in the red for the year-to-date.
Other action in the stock market today:
- The S&P 500 dropped by 1.9% to 3,714.
- The Nasdaq Composite gained 0.5% to 13,337.
- The Russell 2000 declined 1.6% to 2,073.
- Gold futures snapped a seven-session losing streak, gaining 0.5% to $1,850.30 per ounce.
- U.S. crude oil futures declined by 0.3% to settle at $52.20 per barrel.
- Bitcoin prices, at $32,608 on Thursday, enjoyed a 3.1% bounce-back to $34,538. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
What a Delayed Recovery Could Mean for Investors
It's no secret: COVID remains the largest known risk to the market's progress.
"Recovery will depend on the willingness of people to get on an airplane, stay in a hotel, and go out to dinner," writes Raymond James chief economist Scott Brown. "A quicker rollout of vaccines will get us there sooner, but there is also a risk that vaccines will be less effective against new strains of the virus. Booster shots may be needed."
The Federal Open Market Committee sounded a similar tone in its Jan. 27 policy statement, writing that "the path of the economy will depend significantly on the course of the virus, including progress on vaccinations."
That means certain anticipated trends for 2021 – the rotation into value stocks comes to mind – could be delayed. Optimists would take that as an extended opportunity to get into a number of rebound plays, including energy, financials and real estate.
You're also seeing a pause in a number of consumer discretionary plays that were popular as we entered the new year. Many of them will benefit from the eventual return to pre-pandemic habits – making them potentially attractive buys now, especially if the current dip deepens. Check out our list of the top 13 consumer discretionary stocks for the year ahead.
Kyle Woodley was long Bitcoin as of this writing.
-
$100 Fee Turning Away Visitors from National ParksDiscover how the new $100 fee will impact your experience visiting 11 of America's most popular parks.
-
Is Mechanical Breakdown Insurance Better Than an Extended Car Warranty?More insurers are starting to offer mechanical breakdown insurance to new car owners. What is it and should you buy it?
-
What to Do When You Bank Lowers Your APYWhy banks lower APYs, options you can explore when it happens and whether more rate cuts are on the horizon.
-
Dow, S&P 500 Rise to New Closing Highs: Stock Market TodayWill President Donald Trump match his Monroe Doctrine gambit with a new Marshall Plan for Venezuela?
-
'Donroe Doctrine' Pumps Dow 594 Points: Stock Market TodayThe S&P 500 rallied but failed to turn the "Santa Claus Rally" indicator positive for 2026.
-
If You'd Put $1,000 Into Lowe's Stock 20 Years Ago, Here's What You'd Have TodayLowe's stock has delivered disappointing returns recently, but it's been a great holding for truly patient investors.
-
If You'd Put $1,000 Into 3M Stock 20 Years Ago, Here's What You'd Have TodayMMM stock has been a pit of despair for truly long-term shareholders.
-
Stocks Chop as the Unemployment Rate Jumps: Stock Market TodayNovember job growth was stronger than expected, but sharp losses in October and a rising unemployment rate are worrying market participants.
-
Dow Rises 497 Points on December Rate Cut: Stock Market TodayThe basic questions for market participants and policymakers remain the same after a widely expected Fed rate cut.
-
If You'd Put $1,000 Into Coca-Cola Stock 20 Years Ago, Here's What You'd Have TodayEven with its reliable dividend growth and generous stock buybacks, Coca-Cola has underperformed the broad market in the long term.
-
If You Put $1,000 into Qualcomm Stock 20 Years Ago, Here's What You Would Have TodayQualcomm stock has been a big disappointment for truly long-term investors.
