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: Wall Street mixed after holiday boom

By Joseph Toppe

16:38, 28 December 2021

Wall Street and stock exchange
Wall Street and stock exchange - Photo: Shutterstock

Following a series of winning sessions, US stocks are lower or just above flat in early trading on Tuesday.

Halfway through the session, the Dow Jones Industrial Average is hovering around a 0.42% gain, the S&P 500 is sitting near a 0.05% improvement, while the Nasdaq Composite is down around 0.33%.

During Monday trading, the S&P 500 went up 1.4% to close at 4,791.19, after the index hit an intraday record for the first time in over a month. The Dow Jones Industrial Average popped 351.82 points, or near 1%, at 36,302.38, while the Nasdaq Composite added 1.4% to 15,871.26.

Winners and losers: Travel shares rebound

As Omicron restrictions are eased, shares of American Airlines are near 1.79% higher, Delta Airlines is up around 1.67%, while Southwest Airlines is approximately better by 1.95% and United Airlines is holding near 2.16% in the green.

In other travel stock, shares of Carnival are better by almost 2%, Royal Caribbean is up near a 0.48% increase, and Norwegian Cruise Line is roughly 0.44% in positive territory.

Vaccine makers Pfizer and Moderna are both down by 3.38% and 2.09% respectively.

Meanwhile, shares of Johnson & Johnson are up near 3.3%.

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Oil: Crude hits highest mark in month

Oil futures are up to levels on Tuesday not seen since November.

AUD/USD_zero

0.63 Price
+0.180% 1D Chg, %
Long position overnight fee -0.0036%
Short position overnight fee -0.0046%
Overnight fee time 22:00 (UTC)
Spread 0.00040

AUD/USD

0.63 Price
+0.180% 1D Chg, %
Long position overnight fee -0.0036%
Short position overnight fee -0.0046%
Overnight fee time 22:00 (UTC)
Spread 0.00040

GBP/USD

1.26 Price
+0.500% 1D Chg, %
Long position overnight fee -0.0032%
Short position overnight fee -0.0051%
Overnight fee time 22:00 (UTC)
Spread 0.00110

EUR/USD

1.04 Price
+0.610% 1D Chg, %
Long position overnight fee -0.0081%
Short position overnight fee -0.0001%
Overnight fee time 22:00 (UTC)
Spread 0.00080

West Texas Intermediate crude for February delivery was trading $1.16 higher, or 1.6%, to reach $76.75 a barrel on the New York Mercantile Exchange, while February Brent crude, the global benchmark, improved $1.18, or 1.5%, to trade at $79.40 a barrel on ICE Futures Europe.

In energy stock, shares of Exxon Mobil are almost 0.6% down, while Chevron is around 0.3% off.

Gold: Yellow metal targets monthly high

Gold futures are up big in early Tuesday trading with February gold popping $9.20, or 0.5%, to reach $1,818 an ounce.

Gold is now on pace to its highest settlement since 19 November.

Forex: Pound holds edge on US dollar

On Tuesday, one US dollar equals $0.88 of the euro, $1.28 of the Canadian dollar, $1.38 of the Australian dollar, and $0.74 of the Pound sterling.

The yield on the benchmark 10-year Treasury note declined to 1.466% from 1.480% on Monday.

Read more: US retail rebounds online this Christmas

Markets in this article

CCL
Carnival Corp (Extended Hours)
26.83 USD
1.44 +5.700%
CVX
Chevron
143.10 USD
1.48 +1.050%
CVX
Chevron
143.10 USD
1.48 +1.050%

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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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