Visa stock sinks again, as 'rotation' helps extend pullback from Friday's record
Shares of Visa Inc. sank 3.6% in active afternoon trading, enough to pace the Dow Jones Industrial Average's decliners, as the credit card and payments company's stock extended its pullback from Friday's record close. Trading volume of 9.5 million shares was already above the full-day average of about 6.7 million shares. On Monday, the stock had slumped 2.3% to be the Dow's third-biggest decliner. It has now shed 5.7% since its $185.74 record close on Friday. Some Wall Street analysts have said that stock market is undergoing a "sector rotation," as investors rotate out of big winners and into the biggest underperformers ahead of year end. Nomura cross-asset analyst Charlie McElligott called Monday's action a "momentum massacre," as investors rotated out of momentum stocks, or those that have run up quickly to historically high valuations, and into value, or stocks trading at lower valuations. Prior to this week's selloff, Visa's stock had soared 41% year to date. Meanwhile, shares of Walgreens Boots Alliance Inc. had tumbled 23% year to date through Friday, but has soared 8.1% this week.
Published:9/10/2019 12:55:15 PM