Traders fancy Powerball chances as stocks continue to fall?
As turmoil in equity and commodities markets continue to batter investors get rich quick schemes are thin-on-the-ground, leaving only the Powerball!
The Powerball jackpot is now estimated at US$1.5bn (or US$930mln if the winner takes the upfront cash).
But, before fed up traders throw in the towel and swap stocks for lottery tickets, be warned, that even if you won the 1-in-292mln prize the man from the IRS will be lurking just behind the presenter of your big cardboard cheque.
The jackpot winnings would be subject to the maximum tax rate on income of 39.6%.
So, as miserable as the markets seem, perhaps its better traders stick to the day job.
Chinese investor makes Hollywood move
Dalian Wanda, the Chinese conglomerate steered by Wang Jianlin, has bought American movie studio Legendary Entertainment for a reported US$3.5bn.
Wanda, among many other things, owns America’s largest chain of cinemas AMC Theatres.
And, according to Jianlin, it is intended that the movie studio would be merged with Wanda’s existing movie production assets in China and would, subsequently, a portion of the company would be sold to investors via an IPO.
It is the latest step by Wanda to diversify from its core Chinese real estate businesses.
Tuesday’s stock movers:
Risers:
Recon Technology (NASDAQ:RCON) rallied over 40% to $1.73 despite the latest crude hit, as the small cap oilfield services group sealed an agreement to supply chemical agents to a PetroChina unit.
Silicon Graphics International (NASDAQ:SGI) surged 27% to US$6.01 after the computer hardware provider pre-announced higher-than-expected results for its fiscal second quarter.
Del Taco Restaurants (NASDAQ:TACO) jumped 11% to US$10.46 after the second largest Mexican-American fast food chain in the United States expected a 6.1% increase in fiscal fourth-quarter revenue, above market expectations.
Guided Therapeutics (OTCBB:GTHP) advanced 6.3% to US$0.0135 after the maker of a rapid and painless testing platform said fourth-quarter sales for the LuViva Advanced Cervical Scan was the highest since the launch of the product.
Fallers:
United Continental (NYSE:UAL) fell 2.6% to $50.29 after the Chicago, Illinois-based airline said its fourth-quarter passenger revenue may fall more than expected, following the November attacks in Paris and sharply lower oil prices.
Etsy (NASDAQ:ETSY) continued its plunge, touching $6.89, the lowest price in its nine-month history in intraday trade. On Monday, Etsy took a hit after a lockup agreement on about 21.9 million shares expired. Alcoa (NYSE:AA) plunged 9% to $7.27 after the New York-based company reported adjusted quarterly profit that topped Wall Street’s forecasts, but revenue trailed expectations.