4:15 pm: GameStop stock loses 60%
The DJIA closed Tuesday up 475 points, 1.6%, at 30,687 in the index;s best day since November. The Nasdaq Composite gained 209 points, 1.6%, to 13,613, and the S&P 500 picked up 52 points, 1.4%, to 3,826.
The mania around GameStop Corp (NYSE:GME) may be dying down this week. The retaier's stock torpedoed 60% Tuesday to $90. Shares traded as high as $483 last week.
12:10 pm: Traders build on Monday's gains
The Dow surged more than 600 points, 2%, to 30,812 at midday. The Nasdaq Composite was 211 points, 1.6%, higher, at 13,614, and the S&P 500 gained 67 points, 1.8%, to 3,841.
Institutional traders may be looking beyond the GameStop Corp (NYSE:GME) rally that transfixed investors for some time. The video game retailer's stock sank another 44% to $125.13.
"The bulls are back in control as the fears of the retail-Reddit mob have dwindled," CMC Markets UK analyst David Madden wrote Tuesday. "One could argue that normal service has resumed as the established players are buying back into stocks. President Biden’s stimulus plans are in focus as US lawmakers are debating the scale of the relief package. A group of Republican senators back a $618 billion scheme, which is only a fraction of the $1.9 trillion that Mr Biden announced last month but the funds might be dished out in tranches."
10:10 am: Proactive North America headlines
BetterLife Pharma Inc (CSE:BETR) (OTCQB:BETRF) (FRA:NPAU) files patent protection for its newest compound TD-010 to treat anxiolytic-use disorder
Heritage Cannabis Holdings Corp (CSE:CANN) (OTCQX:HERTF) (FRA:2UE) files a preliminary prospectus for an upcoming equity financing
Mirasol Resources Ltd (CVE:MRZ) (OTCPINK:MRZLF) (FRA:M8R) commences new 2,700 metre drill program at Virginia silver project in Argentina
HempFusion Wellness Inc (TSX:CBD.U) (FRA:8OO) announces exclusive partnership with racing team Loenbro Motorsports for 2021 season
Mind Medicine (MindMed) Inc (NEO:MMED) (OTCQB:MMEDF) (FRA:MMQ) unveils changes at the top as it advances its psychedelic medicine strategy
Nabis Holdings Inc (CSE:NAB) (OTCMKTS:NABIF) (FRA:A2PL) provides update on its Arizona cannabis operations; settles lawsuit
Silvercorp Metals Inc (TSX:SVM) (NYSEAMERICAN:SVM) (FRA:S9Y) subsidiary acquires La Yesca silver project in Mexico
Fury Gold Mines Limited (TSE:FURY) (NYSEAMERICAN:FURY) (FRA:AUN1) aims to kick off 25,000m of drilling at Homestake Ridge gold-silver project this summer
African Gold Group Inc (CVE:AGG) (OTCMKTS:AGGFF) (FRA:3A61) says latest drilling at flagship Kobada gold project augurs well for expanding resources
NetCents Technology Inc (CSE:NC) (FRA:26N) (OTCQB:NTTCF) inks white label agreement for cryptocurrency exchange
9:40 am: Wall Street benchmarks higher
The main Wall Street indices were all higher at the opening bell on Tuesday as hopes for stimulus and the fading retail trading frenzy lifted sentiment.
In the early minutes of trading, the Dow Jones Industrial Average was up 1.02% at 30,519, while the S&P 500 climbed 0.98% to 3,810 and the Nasdaq rose 1.11% to 13,551.
Investors also seem optimistic ahead of earnings later from tech giants Amazon Inc (NASDAQ:AMZN) and Google parent Alphabet Inc (NASDAQ:GOOGL), with shares in the former up 2.2% at US$3,416 while the latter rose 2.1% to US$1,931.
Meanwhile, fellow big tech stalwart Tesla Inc (NASDAQ:TSLA) managed to rise 1.6% to US$835 despite the electric car maker announcing a recall of around 135,000 of its vehicles over failures in its touch screen technology.
7:50 am: Wall Street to open mixed
On another busy results day, the early indications are that US equities will open predominantly firmer.
The Dow Jones Industrial Average is set to rises 232 points – almost emulating yesterday’s advance – to 30,444 while the broader-based S&P 500, which yesterday jumped 60 points, is tipped to climb 30 points to 3,804.
The Nasdaq Composite, which comfortably outperformed the Dow and the S&P yesterday, is set to open more circumspectly, down 49 points at 13,354.
Some big names have already released results, including drugs company Pfizer Inc (NYSE:PFE), which is lower in pre-market trading after earnings came in below expectations.
Oil giant ConocoPhilips (NYSE:COP), on the other hand, declared a loss that was not as severe as feared.
On the macroeconomic front, sales data from chain stores is likely to show a slowdown in growth.
“Same-store chain-store sales growth rose to 3.9% last week, above the top of the recent range, so we expect a correction to perhaps 2% this week. Last week's increase might have been due to increased spending after the $600 stimulus payments were made, but the Redbook data are very noisy,” said Ian Shepherdson at Pantheon Macroeconomics.
Auto sales – that's sales of motor vehicles - figures for January are also scheduled for release.
Daiwa America chief economist Mike Moran expects the numbers will point to sales running just a touch below the 16.3mln pace set in December.
Four things to watch for Tuesday:
- Aside from the big tech earnings, other big hitters in the diary today include oil giant ExxonMobil Corp (NYSE:XOM) as well as delivery firm United Parcel Service Inc (NYSE:UPS) and video games maker Electronic Arts Inc (NASDAQ:EA)
- A few speeches from some of the Fed’s regional president’s may also garner some attention, with both Cleveland Fed president Loretta Mester and New York Fed boss John Williams scheduled to deliver remarks
- On commodities markets, silver prices may be eyed as the metal began to pull back after hitting an eight-year high on Monday in what many saw as a continuation of the GameStop Corp (NYSE:GME) frenzy last week
- Shares in Apple Inc (NASDAQ: AAPL) may also be in focus after the tech giant saw a surge of interest in its US$14bn debt offering announced last night