Dow Jumps 250 Factors As Meme Shares Maintain Their Positive factors And Reddit Merchants Push Silver To An 8-12 months Excessive
For the first time since the Reddit-fueled trading frenzy last week, the broader stock market has made gains alongside the bulk of meme stocks, and while the chaos doesn’t seem far from over, the week ahead should provide much-needed clarity on the markets offer a broader economic front, with key business negotiations moving forward and key earnings being released.
GameStop stocks are roughly flat, but BlackBerry and AMC are among the meme stocks that are still making profits.
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Shortly after the market opened, the Dow Jones industrial averages rose 260 points, or 0.9%, while the S&P 500 and tech-heavy Nasdaq rose 1% and 1.1%, respectively.
International Flavors & Fragrances’ shares are up 12% after the company announced it would complete the previously announced merger with DuPont’s nutrition and life science businesses on Monday to create a combined company with annual sales of more than $ 11 billion.
After rising 400% and 275% over the past week, GameStop’s shares are down 10%, while AMC is up 20% on Monday as online brokerage Robinhood relaxes its trading restrictions on other Reddit stocks.
Meanwhile, some Reddit traders have drawn attention to silver and raised the price of commodities by 11% to an eight-year high in an attempt to make money out of Wall Street businesses again, but many on the discussion forum seem to believe that it will steer Only turn your attention away from meme stocks.
Other meme stocks are also doing well on Monday. BlackBerry, Virgin Galactic and Naked Group were up 5%, 8% and 11% respectively, while Bed Bath & Beyond were down 2%.
Global stocks also rallied after a lukewarm end last week. The Japanese Nikkei 225 closed 1.6% on Monday, while the British FTSE 100 rose 1.1% and the German DAX index rose 1.4%.
President Joe Biden will meet with a group of 10 centrist Republicans on Monday to discuss a non-partisan stimulus package. The group has proposed a slimmed-down $ 600 billion bill, well below the president’s $ 1.9 trillion bailout bill. Meanwhile, Democrats are preparing to push Biden’s haughty proposal this week through a special process called budget balancing, which would only require 51 votes to pass in the Senate.
“The big question about incentives is not so much whether Democrats use reconciliation for the first part of Biden’s financial agenda, but whether it jeopardizes the rest of his agenda, including infrastructure spending, and the answer to that is likely yes.” Adam Crisafulli, founder of Vital Knowledge Media, said Monday before dismissing GameStop, AMC and BlackBerry’s continued rise (and the recent surge in silver) as “nonsense”.
What to look for
It’s another big week for income and economic data. Alibaba reported Tuesday morning while Amazon and Alphabet made headlines after the close of trading. Then Spotify, eBay, PayPal and Qualcomm all report on Wednesday. The January job report will be released on Friday.
The bull market hit new highs in early January, largely thanks to high fiscal expectations, vaccination optimism and corporate earnings that continue to beat expectations. But stocks ended last week with their biggest losses since the election as uncertainty hit the markets in late October. Despite the short-term price volatility, the experts appear to be optimistic about the long-term outlook for the market. Apple, Microsoft and Tesla all beat earnings expectations last week. In addition to the fiscal stimulus plans that could be implemented as early as this week, Johnson & Johnson is likely to receive emergency approval for its one-off Covid-19 vaccine, Crisafulli notes that the candidate will have the total number of those in the US this month Coronavirus vaccines on the market increased to three.
GameStop FOMO? 9 Investment Sages Explaining Meme Stock Mania (Forbes)
How Robinhood and an Army of Reddit Traders Uncovered Riskiest Market in a Century (Forbes)
Dow fell 1,000 points this week after Reddit traders stormed the stock market – what happens next? (Forbes)