Stock markets opened the new year on a sour note, with the Magnificent 7 technology stocks leading the declines. Apple (AAPL), Nvidia (NVDA), Meta Platforms (META), and Microsoft (MSFT) all fell. Alphabet (GOOG) fell the least, escaping sellers who took profits on high price-to-earnings stocks.
Among the M7, get ready to accumulate GOOG stock.
Apple’s stock dominance and over $3 trillion market capitalization increase the stock’s upside from here. Barclays downgraded the stock on Jan. 2 before markets opened. The firm guessed that weakening iPhone 15 sales is a warning sign for iPhone 16 sales. The new price target is down just one dollar, from $161 to $160, yet AAPL stock lost 4.05% on Tuesday.
Momentum and growth investors booked profits on tech stocks and piled onto drug companies. Merck (MRK), Brystol-Myers, AbbVie (ABBV), Eli Lilly & Co (LLY), Gilead Sciences (GILD), and Amgen (AMGN) are among the drug companies rising by at least 2.5% or more. Expect value stocks to continue to rebound from last year’s bearish selling. Companies like Merck and Brystol-Myers have a healthy drug pipeline.
In the tourism sector, Royal Caribbean (RCL) fell by 8% yesterday, while Carnival dropped by 7.07%. The cruise ship stocks have high debt levels. Travelers have a lower spending budget as inflation remains entrenched in the economy.
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