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5 Biggest Dow Losers Wednesday

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Markets were very mixed Wednesday, but one consistency throughout the entire day was that oil and banks were selling off. Though some positive news on the vaccine front hit the wires, U.S.-China tensions were keeping investors sidelined in some -- but not all -- cyclical sectors. 

Large-cap materials, industrials and consumer discretionary all rose, on a day that wasn’t exactly positive on the U.S.-China trade front. And those sectors are highly sensitive to trade. Still, oil and banking had a rough day, down between 1% and 2% all day. 

The U.S. ordered China to close its consulate in Houston, citing interference with American intellectual property. China said if the U.S. does not reverse its decision, China will respond firmly. Intellectual property theft is a hot button issue between the two countries and the White House has frequently blocked Chinese companies from buying U.S. semiconductor products that contain sensitive software. More broadly, the spat is reflective of the fact that an additional trade deal between the two countries is unlikely and escalated tension seems more likely. This held sentiment back from enabling a broad-based rally. 

Without declines in tech -- the NYSE FANG index was down almost 1% -- the S&P 500 would have been much higher. Investors, gearing up for earnings, have been much more quiet in big tech in July than they were in June, a month that sent FANG stocks up more than 10%, as the stay-at-home and work-from-home tailwinds are perceived to create a sustained acceleration of growth, rather than a one-time acceleration. Now, tech valuations are stretched. Netflix  (NFLX) - Get Free Report and Snap  (SNAP) - Get Free Report fell 10% and 5% after earnings respectively. 

Positively, Pfizer  (PFE) - Get Free Report and BioNTech  (BNTX) - Get Free Report now have a deal with the U.S. government to produce as many as 100 million doses of a COVID vaccine by end 2021, a deal in which the government will fund the free doses to the tune of $1.5 billion. Some on Wall Street noted Wednesday that investors were sitting out, as the China tensions looked quite ugly, as do recent virus data. 

Here were the biggest losers on the Dow Jones Industrial Average as of 2:40 EDT Wednesday:

Goldman Sachs  (GS) - Get Free Report: -2.9%

Exxon Mobil  (XOM) - Get Free Report: -2.3%

JPMorgan  (JPM) - Get Free Report.: -1.4%

Chevron  (CVX) - Get Free Report: -1%

Johnson & Johnson  (JNJ) - Get Free Report: -0.3%

As for Johnson and Johnson, the company joined other biotech stocks -- with the exception of a rising Moderna  (MRNA) - Get Free Report -- in its fall Wednesday, as Pfizer and BioNTech have their deal situated. 

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