S&P 500 Update: GameStop really dumps, Bitcoin, Oil and Equities jump
Update 1130EST/1530GMT: Equity markets are stronger in the morning session as the Dow and S&P lead with near 1% gains. The Nasdaq drags as Amazon is the only big tech name ahead. Gamestop really suffers post results and is down over 20% now at $142 in a meme stock sell-off. Oil continues to be boosted by the stuck Suez as earlier reports that it may be reopening appear to be delayed.
Sectors: Energy clearly the winner +3%, Financials +1.4% Consumer Staples +0.1% and Tech +0.2%.
Selected movers: Imperial Oil +7%, Applied Materials +7%, PG&E +6%, Royal Caribean and Carnival +5%, BP,Chevron, Exxon all +3%, Gamestop -21%, ViacomCBS -18%, Tencent -18%, XPeng and LiAuto -7%, General Mills -4%.
-637521963950400664.png)
Gamestop
Here is what you need to know on Wednesday, March 24:
Asian markets suffered as European lockdowns worried investors. Bitcoin got a boost as Tesla said you can now pay for Tesla autos in Bitcoin. Gamestop dumped in after-hours and pre-market as earnings were mixed and the company hinted at a share sale.
The US 10-year yield continues to slide, now under 1.65%, as the Fed doves flew onto the wires on Tuesday.
Oil popped to $60 as the Suez Canal was blocked by a learner driver executing a three-point turn! Actually, a ship ran aground, but reports this morning say it has been refloated. The dollar firmed as Europe locked down again, reaching 1.1820 versus the euro.
Stay up to speed with hot stocks' news!
European markets are mostly positive with the Dax disappointing with a 0.6% loss as Germany locks down for Easter but then changes its mind! The FTSE is up 0.2% and the EuroStoxx up 0.4%.
US futures are higher, Nasdaq up 0.7%, Dow up 0.4%, and S&P up 0.4%.
-637521891467185303.png)
S&P 500 top news
Germany decides a lockdown is in order for Easter but then changes its mind! You could not make this up! Angela Merkel to her credit said, "This mistake is mine alone."
Oil popped as a ship ran aground in the Suez Canal, blocking the canal for several hours. The ship has been refloated, and the canal should reopen later on Wednesday, according to Reuters.
EU announces plans for covid 19 vaccine export controls.
The Yellen and Powell double dove act continues to testify in Washington on Wednesday.
Fed member James Bullard sees inflation at 2.55% in 2021 and similar in 2022.
US durable goods orders fell 1.1% in February versus expectations for a 0.8% rise.
GameStop drops as results cannot justify the crazy valuation, and GME hints at a share sale in SEC filing.
Pfizer BioNTech: Hong Kong has stopped use of a batch of Pfizer's COVID-19 vaccine, citing defective packaging.
AMC, Disney: Disney delays the Black Widow movie and plans to release it on Disney+ on the same day as theaters.
ExxonMobil's debt was downgraded by Moody's, citing dividend payments.
General Mills missed earnings estimates. Shares down 5% pre-market.
Royal Caribbean announced a note offering to raise $1.25 billion. Shares up 1.3% pre-market.
Adobe beat estimates and issued strong guidance after the close on Tuesday. Stock up 1% pre-market.
Winnebago popped 6% in pre-market after it posted strong results. Hey, we cannot go abroad, so might as well buy one!
Intel CEO says the old Intel is back and announces plans for two new chip plants in the US. Shares up 4% in pre-market.
Boeing, Lockheed and Northrop: All win separate contracts to make interceptor missiles for the US missile network.
Ups and downs
Adobe: Jefferies raises price target.
Nike: Cowen & Co cuts price target.
GameStop: Wedbush raises price target to $29! Telsey lowers price target to $30. Jefferies raises price target from $15 to $175!! Reuters reports that Jefferies was given a $100 million ATM stock sale program in December, according to SEC filing. Jefferies may have been precluded from updating its target due to this and Q4 results being due.
Intel: Needham raises price target.
Economic releases
-637521890798476158.png)
The author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
This article is for information purposes only. The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice. It is important to perform your own research before making any investment and take independent advice from a registered investment advisor.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to accuracy, completeness, or the suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. The author will not be held responsible for information that is found at the end of links posted on this page.
Errors and omissions excepted.
Premium
You have reached your limit of 3 free articles for this month.
Start your subscription and get access to all our original articles.
Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
