Wall Street ended lower on Tuesday, starting 2023 with a modest decline. With trading resuming after the three-day holiday weekend, investors carried over the negative sentiment that saw 2022 end with the worst annual performance since the Great Recession. The S&P 500 slipped 0.4% on the day, with energy stocks leading the slide.
While the general market faced selling pressure, China-based stocks received a boost. Signs of the government’s softening stance towards the U.S. allowed stocks like Alibaba (BABA), Baidu (BIDU), Pinduoduo (PDD), NetEase (NTES), Weibo (WB) and JD.com (JD) to rise.
Elsewhere, Aurinia Pharmaceuticals (AUPH) represented one of the day’s standout gainers. Shares rose almost 40% on news of a patent settlement.
On the downside, Rivian Automotive (NASDAQ:RIVN) extended its recent weakness to set a new 52-week low. At the same time, policy changes from a new presidential administration in Brazil sent Petrobras (PBR) tumbling.
Sector In Focus
Chinese stocks received a boost amid upbeat signs from the country’s government. Investors cheered conciliatory remarks from a top government official that signaled a potential easing of tensions with the U.S. Qin Gang, China’s new foreign minister, said he wanted to deepen ties with the nation’s biggest international rival.
Alibaba (BABA), Baidu (BIDU) and Pinduoduo (PDD) were among the big names that received buying interest on the news, with the sector being primed for optimism by China’s recent move away from its strict zero-COVID policy. BABA and PDD both rose around 4% on Tuesday.
A patent settlement triggered a wave of buying in shares of Aurinia Pharmaceuticals (AUPH), which soared 38% on the day.
AUPH revealed that it has reached a settlement with India’s Sun Pharmaceuticals. The deal relates to a patent challenge centered on its lupus nephritis treatment Lupkynis.
Bolstered by the agreement, AUPH jumped $1.62 to close at $5.94. With the advance, the stock came further off a 52-week low of $4.07 reached in late December. The surge took shares to their highest close since early November.
Even with Tuesday’s rally, AUPH has fallen 73% over the past 12 months.
Shares of Petrobras (PBR), Brazil’s state-owned oil company, posted a substantial decline as the country’s recently installed president signaled a new strategy for the enterprise. Shares dropped 11% on the day.
Brazil’s new president, Luiz Inacio Lula da Silva, has removed PBR from a list of state-controlled businesses that had been scheduled for privatization. Lula, as he’s widely known in the country, was sworn in on Jan. 1.
PBR closed Tuesday’s trading at $9.51, a decline of $1.14 on the session. The stock has seen choppy trading recently amid political wrangling in its home country. This followed a decline from late October to a 52-week low of $8.88 reached in mid-December.
Notable New Low
Rivian Automotive (RIVN) suffered another retreat, adding to the steady decline that has marked trading over the past month. Shares slipped another 6% to reach a fresh 52-week low.
RIVN dropped $1.09 on the day to close at $17.34. During the session, the stock also set an intraday 52-week low of $17.08. Shares have now recorded just one higher finish in the past 16 sessions. RIVN has dropped about 46% since Nov. 30.
After the closing bell, RIVN released production data for Q4. the company said it produced 10,020 vehicles at its manufacturing facility in Normal, Illinois, in the latest quarter, bringing its full-year total to a level just above 24.3K. This figure came in below the 25K forecast the company issued in November.
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Authore – Abhi bhardwaj