Stocks Slip Again on Rate Worries; Apple Downgraded on iPhone Demand Concerns But QuantumScape Jumps on Positive Battery Test
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Stocks slipped for a third day amid concerns about rising Treasury yields and the January Barometer theory which posits that January returns predict performance for the rest of the year.
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U.S. labor market data showed continued strength, with private payrolls rising more than expected in December. Initial jobless claims also came in below forecasts.
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Apple shares fell after analysts at Piper Sandler downgraded the stock, citing soft iPhone demand. Other big movers included Walgreens after it cut its dividend, and APA Corp. which acquired Callon Petroleum.
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Solid-state battery maker QuantumScape jumped after Volkswagen reported positive long-term test results of its technology, which showed little degradation after over 1,000 charge cycles.
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January performance matters historically - when the S&P 500 finishes the month down, its average annual return is -0.7% compared to +13.2% when January is positive.