Milken Institute chief economist Dan Flax and Neuberger Berman senior research analyst Dan Flax discuss market recovery amid pandemic.
U.S. stock futures were lower on Wednesday morning as investors struggled with rising bond yields and the assurance of Federal Reserve Chairman Jerome Powell that the central bank would continue to support the economy.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| Ek: DJI | DOW JONES AVERAGE | 31621.6 | +84.25 | + 0.27% |
| SP500 | S&P 500 | 3884,73 | +3.36 | + 0.09% |
| I: COMP | NASDAQ COMPOSITION INDEX | 13405.145886 | -60.05 | -0.45% |
The Dow Jones industrial average was up 80 points, or 0.25%, while the S&P 500 and Nasdaq Composite were down 0.36% and 0.76%, respectively.
The sales come because the standard yield for ten years reached a one-year high of 1.42%. Wall Street strategists are worried that a move of more than 1.5% will adversely affect equities.
The rise in bond yields comes after Powell told the Senate Committee on Tuesday that the Fed would continue its asset buying program and that inflation would remain in check. Powell will hold his two-day testimony from Capitol Hill before the Financial Services Committee on Wednesday.
When it comes to equities, Johnson & Johnson’s COVID-19 vaccine is definitely safe and effective by US regulators. The vaccine can be approved by the Food and Drug Administration for emergency use by the end of the week.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| JNJ | JOHNSON & JOHNSON | 161.84 | +1.27 | + 0.79% |
Lowe’s Companies Inc. had 28% more sales in the same stores each year, but repeated do-it-yourself projects that became popular during the pandemic could become popular as the economy normalizes. Both revenue and revenue were above Wall Street’s estimates.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| LOW | LOWE’S COMPANIES INC. | 163.13 | -5.46 | -3.24% |
| SQ | SQUARE INC KOM | 238.29 | -18.29 | -7.13% |
The payment company Square Inc. bought an additional $ 170 million in bitcoin at an average price of about $ 51,235 per coin, according to a press release Tuesday night. The new purchases increase the company’s bitcoin holdings to more than 5% of its cash and cash equivalents.
The announcement was accompanied by Square’s quarterly report, which beat analysts’ expectations for both earnings and revenue, but indicated that growth could slow.
TESLA’S BITCOIN BUYS BOTH ‘FRIEND AND ENEMY’
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| TSLA | TESLA INC. | 713.72 | +14.88 | + 2.13% |
Tesla Inc. was in focus after investor Cathie Wood’s Ark Invest funds contributed to its position in the company. Shares of the electric car maker slipped to the bear market area on Tuesday, with 21% lower than the peak in January.
GAMESTOP CFO RESIGNS
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| GME | GAMESTOP | 47.77 | +2.83 | + 6.29% |
Meanwhile, GameStop chief financial officer Jim Bell will retire next month as the video game retailer shifts its focus to e-commerce, the company said late Tuesday. The decision comes nearly a month after GameStop shares were at the center of a retail frenzy.
In commodities, West Texas Intermediate crude rose 74 cents to $ 62.41 a barrel and gold slipped $ 16.40 to $ 1,789.50 an ounce.
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In Europe, the French CAC 40 traded 0.16 lower and the British FTSE 100 0.1% lower. Germany’s DAX 30 outperformed 0.38% after the country’s economy grew faster than 0.3% in the fourth quarter.
Markets across Asia were hit hard by the Hong Kong Hang Seng Index which fell 2.99% after the government raised the stock trading tax. Elsewhere in the region, China’s Shanghai Composite Index lost 1.99% and Japan’s Nikkei 225 fell 1.61%.