Stock Markets

The shares of Amazon.com, Inc. (NASDAQ:AMAZN), Tesla Motors Inc (NASDAQ:TSLA) and other technology stocks decline today amid the global market selloff, which was caused by the renewed concerns regarding China’s slowing economic growth.

China’s weak factory data ignited a global market selloff today—the first trading day of 2016. In the United States, equity markets were negatively impacted by the contraction of the manufacturing industry, which boosted worries that China’s economic slowdown is spreading.

The Institute for Supply Management (ISM) Manufacturing Index declined from 48.6% to 48.2% in December, lower than the 49% expected by economists.

Bull market catalysts

In an interview with Bloomberg, Michael O’Rourke, chief market strategist at JonesTrading Institutional Services, commented, “We’ve had a number of negatives out there in the U.S. and China— is a reminder that there aren’t many things to be bullish about going into this year.”

O’Rourke emphasized that the three catalysts to the bull market were economic recovery, earnings recovery, and accommodative policy. According to him, “While the economy has gotten better, we’ve lost the other two.”

Market losers

The stock price of Amazon.com dropped 5.76% to $636.99 per share today. James Cakmak, an analyst at Monness Crespi Hardt has downgraded his rating on the shares of the e-commerce giant to Neutral from Buy.

In a note to investors, Cakmak said there are better entry points for investors in the near-term. According to him, “Even winners need to take breathers sometimes as estimates recalibrate.”

The analyst also believes that Amazon’s commitment to its original programming and its increased investments in Prime Now would reduce its gross margins. However, he believes that Amazon could deliver strong returns to long-term investors.

Tesla Motors tanked 6.92% to $223.411 per share after reporting its vehicle delivery figures fourth quarter and full year 2015, the met the low-end of its guidance.

Tesla Motors delivered 17,480 vehicles in the fourth quarter. Its total vehicle deliveries for 2015 were 50,580 units, which included 208 Model X SUVs.

In a note to investors, Ben Kallo, an analyst at Robert W. Baird & Co. issued a Neutral rating on the shares of Tesla Motors. According to him, “We remain on the sidelines until we see further clarity around the Model X ramp and the Model 3 reveal. The Model X production ramp began later than we had expected in Q4, with a total of 507 Model X vehicles produced.”

Netflix, Inc. (NASDAQ:NFLX) fell almost 3.86% to $109.96 per share. Baird analyst William Power downgraded his rating on the stock from Outperform to Neutral. He also reduced his price target from $ 128 to $115 per share.

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