(Reuters) Wall Street posted its worst performance of the year on Tuesday, with the main benchmarks ending down as investors interpreted a rebound in U.S. business activity in February to mean interest rates will need to stay higher for longer to control inflation.
For the S&P 500 (.SPX) and Nasdaq Composite (.IXIC), it was their third session in a row closing lower, while the decline in the Dow Jones Industrial (.DJI) wiped out its gains for 2023.
The falls came after the S&P Global Purchasing Manufacturer’s index, which reflects business activity in the United States, returned to expansion for the first time in eight months in February.
The 50.2 reading, up from 46.8 in January, was buoyed by a robust services sector, according to a survey.
The report added to a recent slew of economic data which has painted a picture of a resilient economy, which continues to perform against a backdrop of multiple rate-rises by the central bank in 2022 aimed at tamping down inflation.
The Dow Jones Industrial Average (.DJI) fell 697.1 points, or 2.06%, to 33,129.59, the S&P 500 (.SPX) lost 81.75 points, or 2.00%, to 3,997.34 and the Nasdaq Composite (.IXIC) dropped 294.97 points, or 2.5%, to 11,492.30.
Among those hit by Tuesday’s widespread declines were big tech stocks, with Tesla Inc (TSLA.O), Amazon.com Inc (AMZN.O), Microsoft Corp (MSFT.O) and Google-parent Alphabet Inc (GOOGL.O) all falling between 2.1% and 5.3%.
Here are 2 retail favorites that outperformed the rest of the market on Wall Street’s worst day of the year.
#1. AMC Entertainment Holdings, Inc.
AMC Entertainment (NYSE:AMC) stock surged +16.30% on Wall Street’s worst day on Tuesday.
The movie theatre chain company closed at $6.10 and is currently up +55.22% this year-to-date.
Volume on Tuesday also surged more than 41 million its average trading volume of 31 million to 72.5 million.
AMC will soon be going through a merge with its APE shares as well as a 1-for-10 reverse stock split.
#2. Clean Vision Corporation
Clean Vision Corporation (OTCMKTS:CLNV) stock soared more than 43% on Wall Street’s worst day this first quarter.
CLNV stock is up more than +53% this year-to-date.
Trading volume also rose by more than 20 million its average of 9 million on Tuesday.
Clean Vision Corp. announced it would be issuing a special dividend, granting 5 shares to shareholders for every 100 shares being held.
$CLNV has also joined the group of retail activists fighting naked short selling alongside Roger Hamilton’s $GNS along with others.
How are your favorite stocks performing in 2023?
The Wall Street Journal said towards the end of January that short sellers lost $81 billion after 2023’s rally.
“Short sellers who have incurred hefty losses are actively trimming their positions”, said Ihor Dusaniwsky, managing director of predictive analytics at S3 Partners.
“Investors betting against stocks have racked up $81 billion of mark-to-market losses on short positions this month through Thursday after accumulating $300 billion in gains in 2022”, Mr. Dusaniwsky said.
“We’re seeing a mirror image of the performance within the equity market. The worst performers last year have been leading this year,” said David Lefkowitz, head of Americas equities at UBS Global Wealth Management. “It does look like some re-risking and short covering.”
“A lot of these stocks rallying were highly shorted, long duration names with earnings way out in the future. With a significant decline in the discount rate, those earnings are now worth more,” said Sameer Bhasin, principal at Value Point Capital, a New York-based family office.
The Dow Jones gains were wiped out today in Wall Street’s worst day of the year.
How are your favorite stocks performing in 2023 so far?
Leave a comment down below.
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How are your favorite stocks performing in 2023? Leave a comment below.