Traders also responded to data showing that Johnson & Johnson’s COVID-19 vaccine was only 66% effective
16:00: Short sellers occupy their positions
The Dow closed 623 points, 2%, at 29,981 on Friday. The Nasdaq dropped 266 points, 2%, to 13,071, and the S&P 500 dropped 73 points, 1.9%, to 3,714.
GameStop Corp () rose 70% to $ 328.24 after the brokerage app Robinhood allowed investors to buy shares of the video game retailer and other highly volatile stocks.
Short sellers still hold their clumsy GameStop positions despite $ 19.75 billion in total market-to-market loss, according to CNBC and data from S3 Partners.
Jim Cramer urged retail investors to sell the shares on CNBC’s “Squawk on the Street”
‘Take the home run. Do not go for the grand slam. Take the house running. You have already won. You won the match. You’re done, ‘Cramer said.
12:15: GME short sellers reduce nearly $ 20 billion
The Dow tumbled 422 points, 1.4%, to 30,215 at lunch. The Nasdaq Composition dropped 136 points, 1%, to 13,200, and the S&P 500 dropped 47 points, 1.2%, to 3,740. slipped.
Institutional and individual investors are tied to every move of GameStop Corp () and others. It’s amazing that GME short sellers have been nearly $ 20 billion lower so far this year, according to data from S3 Partners.
“Fear is running through the stock markets again, as some trading programs have eased restrictions on certain stocks that have recently experienced colossal volatility, such as Gamestop,” CMC Markets analyst David Madden wrote on Friday. ‘There is concern that we may see furious trading by retailers in selected equities, and that it may renew the fear that some hedge funds may pursue a cutting and management policy, which is why stock markets are lower. “
GameStop, the stock watched by every trader, rose 88% to $ 370.50. The video game trader saw its stock close at $ 483 on Thursday afternoon before closing at $ 193.60 the same day.
Inc. (), another favorite among reddit-inspired retailers, rose 81% to $ 15.64.
Shares of () fell nearly 4% to $ 162.62 after the company’s COVID-19 vaccine was found to be 66% effective against the virus.
10:05 a.m .: Proactive news in North America
Inc (TSX: BRAG) (OTCMKTS: BRGGF)’s ORYX division enters Czech and Slovak markets via SYNOT Group partnership
NexTech AR Solutions Corp () () (CSE: NTAR) Virtual Experience Platform to Transform Canadian Medical Association Leaders Online Conference
Blackrock Gold Corp () enters into agreement with Red Cloud Securities for a “purchased transaction” placement to raise the gross return of C $ 7,020,000
Inc. () (OTCQB: TBPMF) (FRA: JAM1) receives US FDA approval on IND for QIXLEEF, which sets the stage for clinical trials
Heritage Cannabis Holdings Corp () () (FRA: 2UE) receives first order from the Ontario Cannabis Store for its Purefarma and Pura Vida products
() () (FRA: 20Q) identifies potential porphyry target at Yawi during his Ecuador project
Victory Resources Corporation () (OTCMKTS: VRCFF) (FRA: VR62) is ready for short hole drilling program at Loner once the permit is received
Great Panther Mining Ltd (TSE: GPR) (NYSEAMERICAN: GPL) (FRA: G3U) outlines US $ 13 million exploration plans for 2021
Esports Entertainment Group Inc () says the trademarks of VIE and SportNation have now been approved in 150 worldwide jurisdictions
Corp () hosts Florida’s first annual Future of Healthcare Summit for top healthcare leaders
09:44: Wall Street starts lower
Major Wall Street indices started slower on Friday morning after gloomy U.S. macro data.
Shortly after the opening clock, the Dow Jones Industrial Average fell 0.84% to 30,344, while the S&P 500 fell 0.67% to 3,762 and the Nasdaq fell 0.46% to 13,276.
The decline in markets follows data showing that US consumer spending fell 0.2% in December. For the second month in a row, the figure has dropped as pandemic-related restrictions continue to weigh on consumers’ buying activity.
Despite this, the decline was less than analysts had forecast 0.4% and better than the 0.7% decline in November.
Meanwhile, shares in GameStop Corp () started to go even further, at $ 345 from the previous close of $ 193.60, as the Reddit-inspired rally showed no signs of slowing.
07:52: Wall Street lower
After bouncing back yesterday, US markets are expected to return some of the profits today.
Offers for spread betting indicate that the Dow Jones industrial average will drop 153 points to be around 30,450. The broader-based S&P 500 is expected to dive 24 points to 3,763 and the Nasdaq Composite will tumble 258 points to 13,079.
No US market report seems complete these days without mentioning GameStop Corp (), the stock that has become a stock market football.
The stock is up 60% in pre-market trading after falling 44% yesterday after trading app Robinhood restricted trading in the stock. The movement of today is of course the result of zero corporate news flow of the company.
However, there are some earnings updates from big names like Colgate Palmolive and Eli Lilly.
Adjusted earnings per share (EPS) for the fourth quarter of $ 2.07 surpassed the consensus forecast by seven cents.
Colgate-Palmolive shares eased during the reading of the market after saying they expect high uncertainty in 2021 and volatile commodity prices.
Eli Lilly went higher than screen-based trading before the clock after its sales and profit numbers exceeded analysts’ forecasts.
The drug company delivered 950,000 doses of bamlanivimab, its treatment for the coronavirus (COVID-19), to the U.S. government and agreed to deliver another 500,000 doses before the end of the quarter.
The Johns Hopkins database reported 165,000 new U.S. COVID-19 cases yesterday, 14.5% lower than Thursday last week.
‘This is the fourth decline below 20% after a week in which cases fell by 22%. Cases are still declining fairly rapidly, but if the shift seen in recent days continues, new daily business will flatten out at around 135K per day in mid-February, about 45% lower than the peak, but still well above the peak in the second wave , last summer, ”said Inah Shepherdson at Pantheon Macroeconomics.
‘We’re been arguing for some time that the current restrictions across the US are not strong enough to keep things going indefinitely. The tightening in many states and cities between October and December was significant, but no part of the US is under exclusion in the UK, so it is not realistic to expect US business to continue to decline, ‘Shepherdson claims.
In terms of macroeconomic issues, the US economic diary is a busy day, according to Daiwa Capital Markets.
“The personal income and spending report for December will shed light on the monthly profile of consumer spending which supports the weaker than expected increase in private consumption in the fourth quarter reported in yesterday’s national accounts (spending will definitely have fallen in the month ) of September). The core PCE deflator for December will also be important, with the 1.4% increase in the fourth quarter stronger than expected (which explains part of the negative surprise for actual consumer spending), Said Daiwa.
“Today, the employment cost index for the fourth quarter (probably a moderate growth in light of slack in the labor market) and pending house sales for December (also important in light of the modest decline reported in the previous three months) will also take place. is). In addition, we are also receiving the Chicago PMI for January and the final result of the University of Michigan’s consumer sentiment survey for January, ”he added.
Three things to note Friday:
- Big names in the earnings diary for Friday include oil giant Chevron Corp (), while investors will also view shares in pharmaceutical group Eli Lilly & Co () and digger manufacturer Caterpillar Inc () after earnings fell short of both expectations.
- The macro calendar takes into account US revenue for December, as well as the Chicago PMI data for January and Michigan’s consumer confidence for the first month of 2021
- Bitcoin is also likely to attract attention after a Twitter approval from Elon Musk raised the price by 16.4% to about US $ 36,824 on Friday morning.