Federated Hermes CIO Stephen Auth says the huge pressure on GameStop is not the ‘first time we’re seeing a get-rich-quick scheme’, and that there is still a ‘buying opportunity’ in the wider market.
US stock markets were lower on Friday as a wild week of trading on Wall Street came to an end.
The Dow Jones industrial average was lower at 402 points, or 1.31%, while the S&P 500 and Nasdaq Composite were down 1.28% and 1.04%, respectively.
The sales come after the biggest averages recovered some of their losses on Thursday following the biggest one-day decline since October. Stock markets have been trading sharply in recent weeks amid growing concerns about a stock bubble.
CITADEL SHOOTS DOWN ROBINHOOD LINK
Looking at equities, GameStop Corp. shares more than doubled early Friday after trading app Robinhood eased some restrictions on trading, a day after it barred customers from entering buy orders. Other shares that were also subject to the measures, including AMC Entertainment Holdings, BlackBerry Ltd. and Bed Bath & Beyond Inc., also saw a big move upside down.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| GME | GAMESTOP CORP | 338.00 | +140.56 | + 71.19% |
| AMC | AMC ENTERTAINMENT HOLDINGS INC | 14.80 | +6.12 | + 70.52% |
| BB | BLACKBERRY LIMITED | 15.76 | +1.10 | + 7.50% |
| BBBY | BED BATH & BEYOND INC. | 36.84 | +3.20 | + 9.51% |
Elsewhere, Johnson and Johnson said a COVID-19 vaccine was 72% effective in the US and 66% effective in a large trial.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| JNJ | JOHNSON & JOHNSON | 162.56 | -6.35 | -3.76% |
In earnings, a trio of Dow members announced their quarterly results on Friday morning.
Chevron Corp. reported its first annual loss in four years because the COVID-19 pandemic limited travel, leading to a sharp drop in oil and gas demand.
Caterpillar Inc. reported that quarterly earnings fell 29% year-on-year, but that demand for equipment was hurt by the pandemic’s continued economic slowdown.
| Ticker | Safety | Last | Alter | Alter% |
|---|---|---|---|---|
| CVX | CHEVRON CORP. | 85.44 | -3.57 | -4.01% |
| CAT | CATERPILLAR INC. | 183.09 | -1.22 | -0.66% |
| HON | HONEYWELL INTERNATIONAL INC. | 196.29 | -6.46 | -3.19% |
| LLY | ELI LILLY & COMPANY | 205.23 | -4.81 | -2.29% |
Honeywell International Inc. achieved quarterly gains and sales that exceeded expectations as all business segments were stronger than expected. The technology and manufacturing company has issued a full forecast for the 2021 financial year.
Meanwhile, Eli Lily & Co. said quarterly earnings rose 42% year-on-year, boosted by demand for its cancer and diabetes drugs. The company said sales of its COVID-19 therapy also boosted.
In commodities, West Texas Intermediate crude rose 13 cents to $ 52.47 a barrel and gold jumped $ 18.90 to $ 1,856.80 an ounce.
GET FOX BUSINESS ON THE GO by clicking here
European markets traded across the board with Germany’s DAX 30 at 1.1%, the French CAC 40 at 1.31% and the British FTSE 100 at 1.46%.
In Asia, China’s Shanghai index lost 0.63%, Hong Kong’s Hang Seng index fell 0.94% and Japan’s Nikkei 225 fell 1.89%.