Wall Street opens lower on stimulus and Brexit concerns; Down 130 pts by Investing.com

By Geoffrey Smith

Investing.com – US stock markets opened mostly lower on Friday, on track for their first weekly loss in nearly a month, although the week’s two IPOs held on to most of their spectacular gains.

As of 9:35 am ET (1435 GMT), it was down 130 points or 0.4% to 29,870 points. He and he were down 0.5%.

Shares of Airbnb (NASDAQ 🙂 showed no signs of a hangover after doubling on their first day of trading. It was up 2.3% in early trading, while Doordash (NYSE 🙂 shares, which rose 86% on debut, weakened slightly with a 3.8% loss. AirBnB CEO Brian Chesky had trouble justifying the stock’s performance on its first day in an interview with Bloomberg on Thursday night. That performance gave the company a valuation of more than $ 100 billion, even though it only has $ 4 billion in sales and is currently unprofitable. The valuation is three times higher than before the pandemic, which forced AirBnB and many other travel-related companies to rethink their business models.

Doordash also received a stellar rating given that not only is the food delivery company unprofitable on its own, but it also operates in an industry where hardly any company has made a profit.

Extraordinary valuations of some stocks are starting to make the overall market look stretched, some analysts argue. Jeroen Blokland, head of multi-asset strategy at Robeco, noted via Twitter early Friday that the addition of Tesla (NASDAQ 🙂 shares to the S&P 500 raises the price-earnings ratio of the entire index to 44 from an already high 27. the forward P / E ratio to 24.3 from 22.1. Tesla shares fell 2.1% in early trading, but were still near the all-time high they hit earlier in the week.

The market was depressed by new signs of stagnation in talks about a fiscal stimulus package in the United States, as Senate leader Mitch McConnell reiterated his insistence that House Democrats abandon their demand for aid to state and local governments. The Wall Street Journal reported Thursday that McConnell had blocked bipartisan push to agree to a $ 908 billion package of measures on the issue of liability protection for businesses, schools and other entities.

On the other hand, Qualcomm (NASDAQ 🙂 shares fell 4.7% on reports that Apple (NASDAQ :), a major customer, is considering developing its own cellular modems.

Ferrari (NYSE 🙂 shares, by contrast, weathered the news of their CEO’s resignation for personal reasons. The luxury sports car maker and owner of the F1 racing team lost just 0.1%.

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