CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

US mid-day: US indexes fall on Monday

By Joseph Toppe

16:57, 13 December 2021

Wall Street
Wall Street - Photo: Shutterstock

December’s up and down movement continues for the major US gauges as the Dow sank almost 300 points and the S&P fell at mid-day Monday, after hitting a new high on Friday.

Halfway through the session, the Dow Jones Industrial Average sank around 298 points, or 0.8%, to 35,672, the S&P 500 dropped near 0.6%, or 28 points, to 4,683, while the Nasdaq Composite dropped around 0.7%, or 100 points, lower at 15,530.

On Friday, the S&P 500 went up around 1%, the Nasdaq Composite improved 0.7%, while the Dow Jones Industrial Average jumped 0.6%.

Last week, both the S&P 500 and Nasdaq Composite completed their best five days of trading since February, while the Dow posted its best week since March.

Winners and losers: Pfizer shares soar after big purchase

Shares of Tesla are off by 2.2%, despite company CEO Elon Musk named as Time Magazine person of the year.

Shares of Apple are around 1.2% lower, despite closing-in on a $3trn market valuation.

On Monday, shares of Harley-Davidson are surging over 8% after the company announced it’s taking its electric motorcycle unit LiveWire public in a deal which values it at $1.77bn (£1.34bn), making it the first publicly traded electric vehicle (EV) motorcycle company in the US.

In a deal worth $6.7bn in equity value, Pfizer is acquiring Arena Pharmaceuticals, sending stock in the two companies skyward.

In early trading, shares for Pfizer are up by nearly 4%, while shares for Arena are surging around 85%.

HK50

19,843.60 Price
-0.010% 1D Chg, %
Long position overnight fee -0.0232%
Short position overnight fee 0.0013%
Overnight fee time 22:00 (UTC)
Spread 5.0

US500

6,064.90 Price
+0.310% 1D Chg, %
Long position overnight fee -0.0243%
Short position overnight fee 0.0021%
Overnight fee time 22:00 (UTC)
Spread 0.5

US30

43,529.80 Price
+0.250% 1D Chg, %
Long position overnight fee -0.0243%
Short position overnight fee 0.0021%
Overnight fee time 22:00 (UTC)
Spread 2.0

US100

22,045.20 Price
+0.290% 1D Chg, %
Long position overnight fee -0.0243%
Short position overnight fee 0.0021%
Overnight fee time 22:00 (UTC)
Spread 1.8

According to a joint release, Pfizer will also take on all outstanding shares in Arena at a price of $100 each, in an all-cash transaction.

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Oil: Crude prices holding gains

Oil futures are up slightly on Monday after posting their best mark since August on Friday.

West Texas Intermediate crude for January delivery spiked 0.5% to trade at $71.83 a barrel.

Gold: Precious metal continues strong December

Gold futures are up again on Monday after ending last week in the green.

February delivery is up 0.2% to trade at $1,787.70 an ounce.

Forex: US dollar strengthens on Monday

On Monday, one US dollar equals $1.28 of the Canadian dollar, and $0.89 of the Euro, gaining small ground on both from Friday.

The yield on the 10-year Treasury note was off five basis points at around 1.44% Monday, after rising about 14.5 basis points last week, while the ICE US Dollar Index – a measure of the currency against a half-dozen other monetary units – jumped 0.2%.

Read more: Pfizer buy speeds up fight against inflammatory diseases 

Markets in this article

AAPL
Apple Inc (Extended Hours)
253.53 USD
-0.04 -0.020%
Gold
Gold
2648.97 USD
1.48 +0.060%
HOG
Harley-Davidson
31.72 USD
-0.45 -1.410%
HOG
Harley-Davidson
31.72 USD
-0.45 -1.410%
HOG
Harley-Davidson
31.72 USD
-0.45 -1.410%

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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