Wall Street opens lower in a modest correction; Dow Down 39 points by Investing.com

By Geoffrey Smith

Investing.com – US equity markets opened a little lower on Tuesday, correcting somewhat after posting their best day in three months on Monday.

At 9:55 a.m. ET (2:55 p.m. GMT), the was down 39 points, or 0.1%, while the was down 0.2% and the was down 0.6%.

The most important movements have occurred in technology where Focus on video communications (NASDAQ 🙂 rose 3.1% after releasing much stronger-than-expected quarterly results Monday night. In contrast, Chinese electric vehicle maker Nio (NYSE 🙂 ‘s ADRs fell more than 7% after an update that showed increasing losses.

The market remains largely supported by the passage of the $ 1.9 trillion stimulus package by Congress. The bill is picked up by the Senate stripped of its provisions for a national minimum wage of $ 15, to ensure it can pass quickly, without needing the support of Republican senators.

The rotation to cyclicals continued, with chemicals giant LyondellBasell (NYSE 🙂 hitting a new three-year high for the third day in a row.

Elsewhere, Hertz Global Holdings (OTC 🙂 shares fell 22% after the company received a $ 4.2 billion bankruptcy buyout offer from two private equity groups, Knighthead Capital Management and Certares Management. The proposal, which values ​​the group’s equity at $ 2.3 billion, will require bondholders’ approval to convert $ 1.9 billion of outstanding receivables into equity. The offer is an epilogue to one of the flashes of irrational exuberance shown by retail investors last year, which pushed the stock to $ 6.25 – five times its current level – as it fell. bankrupt.

Kohls (NYSE 🙂 stock rose 1.0% after the department store chain said it would restart dividends and buybacks, while Target (NYSE 🙂 rose 2.6% after the retail giant beat holiday quarter sales estimates, fueled by the company’s same-day delivery and in-store pickup services.

Financial stocks have picked up after wobbling in recent days amid fears that Senate Democrats, led by Senator Elizabeth Warren, may pressure the Federal Reserve to reverse the easing of capital requirements it helped in the first phase of the pandemic. Bank investors fear that the additional leverage ratio will be reinstated as a binding constraint on bank balance sheets, limiting their ability to repurchase stocks and pay dividends.