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Amazon down, Nike gains, Magellan downgraded

people shopping at a mall decorated for Christmas

The S&P/ASX 200 closed up on Tuesday, gaining 62.80 points, or 0.86%, to 7,355.00. The market was buoyed by miners and healthcare stocks. CSL, Cochlear, Sonic Healthcare, Washington H Soul Pattinson and Ramsay Health Care were all higher. Afterpay traded down to a 52-week low of $80.21 intraday and closed 1.1% lower.

Iron ore is at its highest since mid-October trading at $128 a tonne in Singapore futures markets. The steel-making ingredient has rebounded from an 18-month low with a better demand outlook from China. Futures in Singapore have climbed more than 50% in just six weeks.

China’s biggest livestreaming and e-commerce platforms saw shares drop after the country slapped an unprecedented tax evasion fine on a top influencer, intensifying its crackdown on celebrities responsible for shifting millions in merchandise on the Chinese Internet, writes Bloomberg. Kuaishou Technology fell as much as 3.9%, Alibaba Group Holding Ltd. as much as 2.2% and Bilibili Inc. 8.8% Tuesday morning in Hong Kong. 

Markets in Hong Kong, Japan and China are up and US futures are gaining. Bitcoin is trading higher, around $48,700. The Australian dollar is around US71.11c against the US dollar.

Wall Street tumbled on Monday as investors dumped travel stocks, big tech, and other growth shares, amid concerns about the rapid spread of the Omicron variant of the coronavirus and its impact on the global economic recovery. The Dow Jones Industrial Average ended down more than 430 points at the lowest since December 3. The S&P 500 fell 1.1%, making the biggest 3-day drop since September while the Nasdaq declined 1.2%. 

Nike posted a $1.34bn net profit, saying sales were up 1% to $11.4bn for the quarter ended November 30, 2021. Earnings per share grew 6% over the quarter and gross margins lifted 2.8% to 45.9%. China sales were lower, with less inventory as factories were shuttered because of Covid-19. Nike shares have more than tripled over the past five years to last close at $156.98. The stock was up more than 2% in after hours trade following the results announcement.

Shares of Amazon.com fell on Monday for the seventh time in the last nine sessions to finish under a key technical level for the first time in more than a month, Bloomberg is reporting. The e-commerce giant’s stock sank 1.7% to close at $3,341.58, its lowest level since November 2, bringing the shares under their 200-day moving average for the first time since early November. Apple lost 0.8%, while Microsoft dropped 1.2% and Meta Platforms tumbled 2.5%. 

Bloomberg says that with Monday’s decline, Amazon is now 9.6% below a closing peak hit last month. It also has lost more than 10% since its July record close. With a year-to-date increase of less than 3%, the stock is lagging megacap peers like Apple, Microsoft and Alphabet, which have posted gains ranging from Apple’s advance of almost 30% to Alphabet’s rally of more than 60%. Both the Nasdaq 100 Index and the S&P 500 Index are up more than 20% in 2021.

The FTSE 100 closed 1% lower and The pan-European Stoxx 600 erased 1.4%, with auto stocks leading losses, and Frankfurt’s DAX shed 1.9%.

Crude oil futures are higher after WTI tumbled as much as 3.7% to trade just above $68 per barrel on Monday, the lowest in over two weeks as traders reassessed the demand outlook amid rising Covid cases globally. Brent was trading just above $72 a barrel.

Morgan Stanley has cut its price target on Magellan Financial Group by 40% to $17.50, forecasting a risk of "lumpy outflows" with 70% of its remaining funds under management from institutional clients overseas. Magellan sank on the ASX on Monday to $19.70 after losing its biggest client, UK-based St James's Place. Macquarie analysts have downgraded Magellan Financial to Neutral as the group's "sustained underperformance has accelerated the risks around flows and pricing". UBS reiterated its Sell rating on Magellan and slashed the price target by 42% to $17. 

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