COM - Hot Stocks: Natural gas drops; AAPL sets 52-week low; TAL profit-taking; GNRC rises on analyst comment

With limited participation and a lack of major catalysts, stocks drifted lower on Wednesday, continuing the downward momentum that has marked most of December. The S&P 500 fell more than 1% to close below 3,800 for the first time since the first half of November.

A drop in energy stocks contributed to the overall retreat. As part of this, natural gas prices plunged, triggering declines in the U.S. Natural Gas ETF ( UNG ) and the ProShares Ultra Bloomberg Natural Gas ( BOIL ).

Meanwhile, technology represented another source of weakness. This included a slide in Apple ( AAPL ), which dropped to a new 52-week low. The list of standout decliners also contained TAL Education Group ( NYSE: TAL ), which continued to come off a 52-week high set last week.

Turning to the upside, Generac ( GNRC ) gained ground on a positive analyst comment.

Sector In Focus

A sharp drop in natural gas prices put pressure on ETFs tied to the commodity. Natural Gas Futures ( NG1:COM ) slumped 7%, reaching their lowest level since March.

The slide came amid forecasts for a warm winter in both the U.S. and Europe. A mild early part of 2023 will cut into demand expectations for natural gas.

Weighed down by the retreat in its underlying commodity, the U.S. Natural Gas ETF ( UNG ) fell almost 7%. Meanwhile, the ProShares Ultra Bloomberg Natural Gas ( BOIL ) succumbed to similar dynamics, dropping nearly 11%.

On the other side of the spectrum, ProShares UltraShort Bloomberg Natural Gas ( KOLD ), which is designed to move in the opposite direction as natural gas prices, climbed about 10%.

Standout Gainer

Generac ( GNRC ) pushed higher following an upbeat analyst assessment, with the stock climbing almost 6% on the session.

Janney began coverage of the maker of backup generators and solar products with a Buy rating . Analyst Sean Milligan highlighted the firm's position within a sector that "exhibits secular growth trends."

"Having spent a total of $902 million on 13 acquisitions since 2019, Generac now has a roadmap to deliver a complete suite of residential solar and storage products to the market," Milligan stated.

GNRC rose $5.10 to close at $96.24. Still, the stock remained in a recent trading range, hovering off its 52-week low of $86.29.

Standout Decliner

A volatile month of trading continued for TAL Education Group ( TAL ), as shares of the China-based provider of tutoring and education services dropped 15%. This continued a recent slide, as the stock retraces a sharp rally that took it to a 52-week high late last week.

TAL ended trading at $7.51, a decline of $1.31 on the session. This added to weakness seen over the past two sessions, including a 12% drop recorded on Friday.

The profit-taking to close out last week followed a buying spree that has marked most of the rest of December. Headed into Friday's action, TAL had finished higher in eight consecutive sessions and in 12 of the previous 13.

All told, TAL surged 84% from its finish on Dec. 5 to its closing mark on Dec. 22. At one point, shares reached an intraday 52-week high of $10.45.

Even with its recent slide, TAL remains 97% higher for 2022.

Notable New Low

Concerns about iPhone shipments weighed on shares of Apple ( AAPL ), fueling an extension of the tech giant's recent decline. With the latest slide, the stock set a new 52-week low .

The latest slide came as Trendforce reduced its estimates for 2022 iPhone 14 shipments. The research firm said the total will likely reach 78.1M units, as AAPL's Foxconn partner has faced labor shortages in China.

AAPL hovered near the unchanged mark early in the session but lost ground during the morning. Shares eventually closed at $126.04, a drop of $3.99 on the session. During the day, the stock set an intraday 52-week low of $125.87.

Wednesday's retreat marked the fourth consecutive day of declines and the stock's ninth lower finish out of the past 10 sessions. AAPL has dropped about 31% in 2022.

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