Morgans AM: Wednesday, 15 December 2021

Morgans Financial Limited

US equity markets declined following the release of data recording that US wholesale prices rose at a record pace in November and ahead of the Federal Reserve’s latest monetary policy decision - Dow down -107-points or -0.30%, booking its first back-to-back loss for December. The broader S&P500 fell -0.75%, with Information Technology (down -1.64%) and Real Estate (-1.27%) logging declines of over >1% to lead ten of the eleven primary sectors lower. Financials (up +0.62%) was the only primary sector to advance. Tesla Inc fell -0.82% after a regulatory filing revealed that Chief Executive Officer (CEO) Elon Musk had sold a further US$906M worth of his holding in the electric vehicle maker (taking the total amount of shares he as sold thus far to 11.9M). The main reason Mr Musk is selling is to pay the taxes on the exercise of options that expire next summer. Ford Motor Co declined -1.9% following news that by 2030 Toyota would be investing US$35B into battery-powered electronic vehicles, a space where Ford has sought to establish itself as a leader. The Nasdaq -1.14%. Microsoft Corp (down -3.26%) was a major drag on the benchmark indices. Adobe Inc shed -6.60% after JPMorgan published its 2022 outlook report on software technology and issued a series of downgrades, citing high valuations. The small capitalisation Russell 2000 lost -1.06%.