U.S. stocks edged lower in early trading on Monday after rounding off the worst week in three months with strong gains on Friday.
Retail sales and industrial production rose slower than expected in China in April, while stocks in Japan and Taiwan fell amid rising COVID-19 cases.
Technology stocks were once again leading the way lower. The tech-heavy Nasdaq Composite COMP,
In our call of the day, Wedbush analyst Daniel Ives said that despite rotation and inflation fears compressing high multiple tech stocks, his long-term bullish thesis for the sector remained unchanged.
In fact, the veteran tech analyst doubled down on his view and said the selloff had presented an opportunity. “We believe this painful selloff in tech has created the opportunity for investors to own the secular tech winners for the next 3-5 years,” he said in a note.
Wedbush said those secular winners included the FAANG tech stocks (Facebook FB,
Ives accepted that the reopenings would bring about growth moderation for some of the poster children of the work-from-home era, including Zoom ZM,
The tech bull cycle will keep moving upward in the second half of this year and “well into 2022,” he said, citing those outsize growth prospects ahead.
“Cloud and hybrid cloud environments represent one of the most transformational growth opportunities we have seen in our 20+ years of covering tech stocks,” he said.
Wedbush said the recent ransomware attack on the Colonial Pipeline showed the importance of cybersecurity. Ives said he was “befuddled” by the lack of cybersecurity infrastructure around utilities and federal assets and that efforts to improve that could benefit a number of names such as Telos TLS,
Hours after sparking a bitcoin selloff, Tesla TSLA,
U.S. stocks DJIA,
Stocks in Japan NIK,
Telecommunications company AT&T T,
Hexo Corp. HEXO,
Colonial Pipeline — the operator of the largest U.S. gasoline pipeline, which was hit by a ransomware attack earlier this month — said on Saturday it has resumed normal operations.
The head of the U.S. Centers for Disease Control and Prevention, Dr. Rochelle Walensky, insisted the decision to ease mask-wearing guidance for fully vaccinated Americans had nothing to do with political pressure, in an interview on “Fox News Sunday.”
Pubs, restaurants and cinemas were among the venues opening up indoors on Monday, as the U.K. took another major step out of lockdown, despite concerns over an Indian variant of the coronavirus that causes COVID-19.
Hollywood star Tom Cruise signs soccer shirts on movie set to help a pandemic-hit local team.
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