Dow drops over 500 points, tech and energy shares tumble

U.S. equity markets took a sharp turn lower in the final hour of trading with technology and energy shares pacing the declines.

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The Dow Jones Industrial Average fell over 500 points or nearly 2% with Chevron and Microsoft falling.

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 26755.07 -533.11 -1.95%
CVX CHEVRON CORP. 72.34 -3.22 -4.26%
MSFT MICROSOFT CORP. 201.02 -6.40 -3.09%

While the S&P 500 and the Nasdaq Composite were off 2.2% and 2.8%, respectively.

Ticker Security Last Change Change %
SP500 S&P 500 3238.93 -76.64 -2.31%
I:COMP NASDAQ COMPOSITE INDEX 10644.664981 -318.97 -2.91%

Looking at stocks, Google was under pressure on reports the Department of Justice is briefing Attorneys General about possible legal action against the search giant.

Ticker Security Last Change Change %
GOOGL ALPHABET INC. 1,407.62 -52.20 -3.58%

Tesla Inc.’s Battery Day event failed to deliver the 1 million-mile battery that Wall Street analysts were expecting. The headlines were instead a new battery pack that will reduce kilowatt-hour costs by 50% and improve vehicle range by 16%.

Additionally, Elon Musk’s company filed a suit to block the Trump administration’s tariffs on China.

Ticker Security Last Change Change %
TSLA TESLA INC. 380.52 -43.71 -10.30%
JNJ JOHNSON & JOHNSON 144.73 +0.55 +0.38%

Johnson & Johnson’s single-shot COVID-19 vaccine candidate is moving ahead to a Phase 3 trial that will include up to 60,000 adults. There is no clear timeline for when a successful vaccine would be available for distribution.

Looking at earnings, Nike Inc. shares soared to a record high, bucking the downtrend, after the sports-apparel giant reported quarterly profit rose 11% from a year ago as COVID-19 resulted in surging online sales of sneakers and workout apparel.

KB Home beat on both the top and bottom lines, but the number of homes delivered fell 16% year-over-year to 2,545 amid disruptions caused by the pandemic.

Ticker Security Last Change Change %
NKE NIKE INC. 125.56 +8.58 +7.34%
KBH KB HOME 37.49 -3.00 -7.41%
SFIX STITCH FIX 26.10 -5.28 -16.83%

Stitch Fix Inc. reported a deeper-than-expected loss while sales grew 9% from the prior quarter as the subscription-based personal shopping platform worked through supply chain issues caused by COVID-19.

Elsewhere, Lululemon Athletica Inc. resumed its share buyback program that was paused amid the COVID-19 pandemic. The program, which expires on Jan. 31, 2021, has $263.6 million remaining.

Ticker Security Last Change Change %
LULU LULULEMON ATHLETICA INC. 316.49 +2.89 +0.92%

Looking at commodities, gold fell $38.70 to $1,859.90 an ounce and West Texas Intermediate crude oil inched up 13 cents to $39.93 per barrel.

U.S. Treasurys fell, causing the yield on the 10-year note to climb 2.5 basis points to 0.689%.

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European markets were sharply higher with Britain’s FTSE trading up 1.58%, France’s CAC advancing 1.12% and Germany’s DAX gaining 0.9%.

In Asia, markets ended little changed with Japan’s Nikkei off 0.06% while Hong Kong’s Hang Seng and China’s Shanghai Composite edged up 0.11% and 0.16%, respectively.