Tax Loss Selling Could Send These Stocks Crashing

On 10-03-2023, the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite all experienced significant declines, with the Nasdaq leading the downturn with a 1.9% drop. The 10-year Treasury yield rose by 2.26% to 4.795%, reflecting the market's anticipation of higher interest rates.

A report from Morgan Stanley identified over 80 stocks that could face technical pressure due to tax loss selling in the fourth quarter. The list, which was generated from the S&P 1500 index, includes stocks that saw at least a 10% drop in price from mid-January through the end of September. The healthcare sector was heavily represented on the list.

In a historic move, the U.S. House of Representatives voted to remove Kevin McCarthy as speaker. This marks the first time a speaker has lost a no-confidence vote. The move was led by a small group of Republicans who sought deeper cuts to the federal budget. Patrick McHenry (R-NC) has been named interim speaker.

The Federal Trade Commission (FTC) has accused Amazon (AMZN) of developing a secretive algorithm to manipulate prices. The algorithm, known as Project Nessie, allegedly allowed Amazon to raise prices in a way that would encourage competitors to follow suit. The FTC's lawsuit against Amazon also alleges that the company is a monopolist that uses anticompetitive strategies.

Meta Platforms (META) is reportedly preparing to lay off employees in the silicon unit of its Reality Labs division. This move follows a series of layoffs that the company initiated earlier this year. CEO Mark Zuckerberg has referred to 2023 as a “year of efficiency” for the company.

Wells Fargo has suggested that the gap between mega cap stocks and the rest of the stock market will likely begin to narrow soon. The bank anticipates that macro pressures will lead to a possible “catching down” for Wall Street's top names.

Palantir Technologies (PLTR) is reportedly set to win a contract to overhaul the UK’s National Health Service. The contract, which is worth up to £480M, is subject to final approvals.

Intel (INTC) has announced plans to separate its Programmable Solutions Group into a standalone operation. The move is part of Intel's ongoing efforts to simplify its larger business.

BP (BP) is reportedly exploring the sale of a 49% stake in its U.S. oil and gas pipeline network in the Gulf of Mexico. The sale could potentially raise as much as $1B.

The U.S. Supreme Court has declined to hear an appeal from CareDx (CDNA), upholding a lower court ruling that found several of the company's patents to be invalid. The decision marks a victory for Natera (NTRA), which CareDx had accused of violating its patents.

Plug Power (PLUG) saw a 4.4% drop in its stock price on Tuesday, marking its lowest closing price since June 2020. The drop was likely due to increased interest from short sellers.

The American Petroleum Institute reported a draw of 4.21M barrels of oil in U.S. commercial stockpiles for the week ending September 29. This news comes as the Energy Information Administration prepares to release its weekly U.S. petroleum supply report.

Nvidia (NVDA) and AMD (AMD) were among the semiconductor stocks in focus on Tuesday. Investment firm KeyBanc Capital Markets reported mixed results from its recent supply chain checks, noting that while demand in China remains weak, there are signs of recovery elsewhere.

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