Stocks lost ground on Monday as investors posted gains after last week’s advance. The drop came ahead of a busy week that includes the Federal Reserve’s interest rate decision and a spate of high-profile earnings reports. The Nasdaq led the retreat, falling by about 2%.
The fall included a profit-taking streak in the electric vehicle sector. Ford’s (F) price cuts boosted sales across the industry. This included slides at GM (GM), Tesla (TSLA), Fisker (FSR) and Rivian Automotive (RIVN).
Chinese stocks also took a step lower. Alibaba (BABA) was among those who declined, falling amid reports that the company may consider moving its headquarters out of China.
Among individual stocks, Glacier Bancorp (GBCI) extended a recent slide, buoyed last week by the release of a weaker-than-expected earnings report. With the decline continuing, the stock hit a new 52-week low.
On the other side of the ledger, Carvana (New York Stock Exchange: CVNA) rose nearly 30%, taking advantage of a recent rally that has seen stocks more than double in value since late last year.
Sector in focus
The news that Ford (F) has decided to cut the price of its electric vehicle Mustang Mach-E sparked a wave of profit-taking in the electric vehicle sector. This came as Morgan Stanley was concerned that Tesla’s (TSLA) earlier price cuts had triggered a “Hunger Games” style price war in the industry.
TSLA fell 6%, snapping a six-session winning streak that included gains of around 11% on both Thursday and Friday. F fell 3%, while GM(GM) fell more than 4%.
Elsewhere in the sector, Fisker (FSR) and Rivian Automotive (RIVN) each fell more than 9%.
featured winner
Carvana (CVNA) posted another day of substantial gains, riding on a rally that has marked most of 2023 so far, as shares of the online car dealer recoup some of the massive losses posted last year.
Shares ended up nearly 29% after unusual volatility triggered a high earlier in the day. This added to a nearly 20% gain posted on Friday. Overall, stocks have more than doubled in value so far in 2023, climbing 116%.
CVNA has bounced off a 52-week low of $3.55. Still, the stock is still down nearly 94% over the past year, and now the stock is only worth a fraction of its 52-week high of $167.
prominent decliner
Alibaba (BABA) tumbled amid a profit-taking streak among Chinese stocks. The drop also came amid reports that the company may move its headquarters to Singapore. Shares fell more than 6% during the session.
According to Barron’s, a new campus being built in Singapore could be large enough to provide a headquarters for the e-commerce giant. This could allow the company to relocate from its home country of China.
The drop in BABA came amid a general slide in Chinese stocks. Pinduoduo (PDD) was among the worst of the bunch, pulling back around 7%. JD.com (JD) and Weibo (WB) fell almost 6%, while NetEase (NTES) fell more than 2%.
In BABA terms, the stock fell $7.18 to close at $111.20. Last week, the shares hit their highest level since July after rising 86% since the first half of November.
new notable low
Glacier Bancorp (GBCI) continued a downdraft that marked the end of last week, when the company announced disappointing quarterly results. Shares fell another 2% on Monday, hitting a new 52-week low.
GBCI tried to rally early in the session, briefly marking positive territory in the first hour of trading. However, shares fell again by mid-morning and finally hit a 52-week intraday low of $44.38. After a brief rally before the close, the stock ended at $44.49, down 92 cents on the day.
This represented the third straight day of declines. Last Thursday, the company reported earnings and revenue that were below expectations.
Shares have fallen around 5% in the past week and more than 9% so far in 2023.
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