Here are the key news, trends and analyzes that investors need to start their trading day:
Stocks will fall after Tuesday’s turnaround in Wall Street
Traders work on the floor of the New York Stock Exchange.
NYSE
US equities traded lower on Wednesday, a day after the wild ride of Wall Street, which caused the Nasdaq to return nearly a loss of nearly 4% to close just 0.5%. The S&P 500 reversed a 1.8% drop to close slightly, breaking a five-session losing streak. The Dow Jones Industrial Average averaged a 360-point drop, or more than 1%, to close modestly higher for the third live session.
The turnaround on Tuesday, especially in technology stocks, came after Federal Reserve Chairman Jerome Powell told the Senate Banking Committee that inflation was still ‘soft’ and that the economic outlook was still ‘very uncertain’ due to the pandemic. . This eased fears of a change in central bank policy. Powell appeared before the House Financial Services Committee on Wednesday in the second and final part of his mandate for half-yearly economic evidence to Congress.
Food and Drug Administration staff have endorsed Johnson & Johnson’s Covid-19 vaccine for emergency use, which is an important step in bringing a third shot to the US market. The staff report is intended to brief the FDA’s Vaccine Advisory Committee on Vaccines and Related Biological Products, which will meet Friday to review J & J’s request for emergency use. Y&J stocks were higher.
2. Tesla bounces and a fund manager with a warm hand could be the reason
In this photo illustration, a Tesla logo is seen on a smartphone with the stock market graph in the background.
Omar Marques | LightRocket | Getty Images
Tesla’s recovery in market trading has moderated after offering a major comeback on Tuesday. At one point, when bitcoin prices fell, stocks fell by 13%. Tesla recently announced an investment in bitcoin. By Tuesday’s closing clock, he recovered most of the losses and dropped only 2.2%. However, the slide of four sessions in Tesla amounted to more than 11%, which dragged the high-flying share for 2021 by almost 1% in the red. For the past twelve months, it has been a whopping 287%.
Ark Invest’s Cathie Wood, who recently had a warm hand, raised more than $ 120 million worth of Tesla shares during Tuesday’s subsequent return. Wood’s purchases may have helped stem the tide in Tesla, tweeted Jim Cramer of CNBC.
Wood told Bloomberg on Tuesday she was particularly positive about Tesla’s driving service as a bridge to autonomous driving. “We do not think many analysts give Tesla credit for autonomous. If that happened, the share would be much higher,” she added.
3. Bitcoin jumps back and rises above $ 50,000
Costfoto | Barcroft Media | Getty Images
Wood, also a bitcoin bull, told Bloomberg: ” We are very positive about Bitcoin, very happy to see a healthy correction here, no market is upright. ‘Bitcoin climbed back above $ 50,000 on Wednesday, after a big sale earlier this week. Bitcoin is more than 70% higher than the previous year and by more than 400% in the last twelve months.
Square said on Tuesday it had bought $ 170 million worth of bitcoin. The fintech firm run by Twitter CEO Jack Dorsey bought $ 50 million worldwide last year. Dorsey, one of bitcoin’s best-known proponents, had previously predicted that it would eventually become the ‘single currency’ of the internet.
4. The chief financial officer of GameStop is retiring after shares powered by Reddit
A GameStop store will be unveiled on January 29, 2021 in New York.
Carlo AllegriI | Reuters
GameStop chief financial officer Jim Bell is retiring next month. The video game retailer said Bell’s resignation was not due to any disagreement with the company regarding its operations, including accounting principles and practices. A source told Reuters that Bell’s exit was not related to the recent Reddit-fueled wild swing in GameStop’s inventory. However, the source said that his departure was started by GameStop, in a sign that he is not considered the right fit as the dealer turns into a tech company.
5. Lowe’s top income is as sales in the same store
A Lowe’s hardware store in Philadelphia.
Mark Makela | Reuters
Shares of Lowe rose 1% in trading after the market after the home improvement retailer said Wednesday that sales at the same store rose 28% in the fourth quarter as consumers spent more on home projects during Covid. Adjusted quarterly earnings of $ 1.33 per share on revenue of $ 20.31 billion exceeded expectations. Lowe’s reiterated the forecast it made on an investor day in December when its chief financial officer said sales of home improvements were likely to decline in 2021 as more people are vaccinated and spend more time outside their homes.
– Reuters contributed to this report. Follow all the developments on Wall Street in real time with CNBC Pro’s live market blog. Get the latest pandemic information with our coronavirus blog.