Stocks finished with a mixed performance on Tuesday, as Wall Street got back to work after the long Christmas weekend. Weakness in technology sent the Nasdaq lower by more than 1%. Meanwhile, the Dow managed to notch a fractional gain.
Chinese tech stocks were among the patches of strength during the day. Boosted by a further loosening of COVID restrictions, names like Alibaba (BABA), JD.com (JD), Baidu (BIDU), Bilibili (BILI) and NetEase (NTES) all finished higher.
Turkcell (TKC) also showed strength on the day. With the advance, the stock reached a new 52-week high.
Looking to the downside, Nio (NIO) suffered a decline amid a softer Q4 forecast. Meanwhile, Coinbase (NASDAQ:COIN) slumped to a new 52-week low.
Sector In Focus
Further signs that Chinese authorities have backed away from their strict zero-COVID policy fueled buying in the country’s major tech names. The latest developments included a lifting of quarantine restrictions for inbound travelers.
In addition, authorities in the country have downgraded COVID from a Category A virus to a Category B, indicating that regulators see it as becoming less virulent.
Bolstered by the news, Alibaba (BABA), JD.com (JD) and Baidu (BIDU) all rose more than 4%. Elsewhere, Bilibili (BILI) surged almost 7% and NetEase (NTES) climbed almost 3%.
Standout Decliner
A weak outlook sparked selling in Nio (NIO). With the Chinese EV maker lowering its Q4 delivery outlook, the stock dropped 8% during the session.
The company said it now expects deliveries of 38.5K to 39.5K vehicles in Q4. This was down from its prior forecast of 43K-48K. The revision came amid ongoing supply chain constraints, stemming from COVID shutdowns in China.
Meanwhile, Nio’s CEO said the firm could face a challenging first half of 2023. This came amid a shaky economic environment and a reduction in government subsidies.
Hurt by the forecast, NIO dropped 90 cents to close at $10.06. Share remain off a 52-week low of $8.38 reached in late October. Overall, the stock has fallen by about 70% in 2022.
Notable New High
Turkcell (TKC) received a boost from news that it has entered into a deal with petrochemical company SOCAR Türkiye. Shares of the Turkish mobile phone maker rose another 7%, adding to a medium-term upswing and allowing the stock to set a fresh 52-week high.
Under the deal, TKC will work with SOCAR Türkiye, an affiliate of SOCAR, the Azerbaijan state oil company, on the digital transformation of one of the biggest refineries in Turkey.
TKC finished Tuesday’s trading at $4.74, rising about 30 cents on the day. Shares also reached an intraday 52-week high of $4.91.
Tuesday’s advance added to the upward momentum that has marked much of the stock’s trading since August. Overcoming weakness seen earlier in the year, the stock has climbed about 27% in 2022.
Notable New Low
A midday drop in Bitcoin (BTC-USD) put pressure on Coinbase (COIN), with shares of the cryptocurrency exchange falling 8% during the session. With the retreat, the stock set another 52-week low.
COIN slumped to an intraday 52-week low of $32.44 before recovering slightly before the close. The stock finished at $32.65, a drop of $2.84 on the day.
With the retreat, shares added to the significant weakness seen earlier in the year. COIN has fallen by about 87% in 2022.
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