Social Media Leads Stocks Lower Ahead of Turbulent Week

Last Updated: Wednesday, January 13, 2021 5:10 PM | Nick Dey

Jan. 11, 2021 - Stocks fell across the board Monday with the S&P 500 falling 0.66%, the Dow dropping 0.29%, and the Nasdaq losing 1.25%.

Tech stocks endured the brunt of today’s selling, which saw the sector fall 0.94% on the day. This came following a weekend that saw companies take action against President Trump for violations of their terms of service. Facebook (FB) and Twitter (TWTR), which lost 4.01% and 6.43% respectively, to lead the sector lower.

Meanwhile, the House of Representatives plans to vote to impeach President Trump for the second time this week.

Anti Social

Over the past four years, social media companies have been widely criticized for the spread of misinformation. Up until recently, Twitter and other companies were reluctant to flag posts from President Trump as containing misinformation. However, Twitter, Facebook, and others have increasingly been flagging started taking stronger stances in the wake of the siege of Capitol Hill last Wednesday. These moves were seen as a negative for the companies which certainly benefit from the President’s account and followers, as both traded down sharp Monday.

Meanwhile, Amazon (AMZN) fell 2.15% after the company was sued by social media service Parler for shutting the service down.  Amazon said it shut down Parler, whose app was also removed the both the Apple and Google app stores, because it  failed to remove posts that encourage violence.

Impeachment Round Two

A new resolution introduced by Representatives David Cicilline, Jamie Raskin, and Ted Lieu aims to impeach Trump for the second time, this time for his role in last week’s violence in the Capitol. The four-page resolution which was released today accused the President of  "Incitement of Insurrection" on the grounds that he "willfully made statements" to encourage the attacks.

While it is unknown how much Republican support there will be for the bill, there is evidence that there could be several willing to vote for the last-second impeachment efforts. Several members across party lines have questioned if it is worth lawmakers'  time to impeach the President with just days left in his term.

Economic Events this Week

Tuesday

  • 10:00 a.m. - JOLTs - Job Openings

Wednesday

  • 8:30 a.m. - CPI
  • 10:30 a.m. - EIA Crude Oil Inventories

Thursday

  • 8:30 a.m. - Initial Claims

Friday

  • 8:30 a.m. - PPI
  • 9:15 a.m. - Industrial Production
  • 9:15 a.m. - Capacity Utilization

Earnings Reports this Week

Tuesday:

Before the bell: ACI After the bell: KBH

Wednesday:

Before the bell: INFO, SJR After the bell: WAFD

Thursday:

Before the bell: TSM, BLK, DAL After the bell: PRGS

Friday:

Before the bell: C, JPM, PNC, WFC

Sector and Industry Sentiment

You can now see which sectors and industries are performing best for each of our metrics using our new Sector and Industry Analysis tools.

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