Here is what you need to know on Wednesday, June 2:
It is Groundhog Day here on Wall Street again as another wave of AMC buyers pushes the stock to unimaginable levels. At the last check, AMC now has a market cap of $18 billion and rising. While this may seem grossly overvalued, the market has been known to stay irrational longer than you can stay solvent. Or in the words of the world's most famous investor, "The line separating investment and speculation, which is never bright and clear, becomes blurred still further when most market participants have recently enjoyed triumphs. Nothing sedates rationality like large doses of effortless money."
Back to the moon or wherever AMC is headed, the momentum behind the stock shows no sign of letting up despite new waves of short-sellers entering the fray. The long army is just too big and has too much firepower at the moment. Eventually, however, the music will stop, and it is important to be careful. It may be fun while it lasts, but no one wants the hangover. Goldman certainly seems to think so,s as its downgrades IMAX and Cinemark. In other news (is there any?), the main indices were curiously shy in sight of record highs on Tuesday. It might be a sign perhaps of the summer lull in progress as everyone takes a well-earned break. A nice low volatility summer could be on the cards given the lofty valuations in play being offset by the wall of money and unlimited Fed support to markets.
European markets are similarly disenchanted this morning and are marginally higher, the FTSE and EuroStoxx are +0.2%, while the Dax is pancake flat.
US futures are snoozing and all trade largely around flat, the notable move being a huge +0.1% gain from the Dow.
Over in the currency market, the dollar strengthens as US yields popped marginally on Tuesday. The euro/dollar is at 1.2178, gold is little changed at $1,898, and oil similarly flat at $68.40. Even Bitcoin volatility is dropping as the crypto leader is steady at $37,200.
Wall Street top news
Bank of Japan may respond to a yen spike if Fed tapering hits.
Parties to Iran nuclear agreement to meet in Vienna on Wednesday.
British PM says nothing in the data currently to suggest June 21 reopening will not go ahead.
Former New York Fed President William Dudley says inflation may become more persistent in coming years.
COINbase to allow Dogecoin trading for its pro users.
AMC surges above $40 in the premarket. Launches new portal on its website for retail investors offering free popcorn, etc.
IRythym (IRTC) says CEO to step down, reaffirms guidance.
Sorrento Therapeutics (SRNE) company's rapid antigen covid test added to Mexico's authorized usage list.
Zoom Video (ZM) Q1 EPS $1.32 v $0.99 estimate, sales 956.2m beat estimate. Guidance also raised.
Ambarella (AMBA) EPS $0.23 beats $0.17 est. Stifel raises price target.
Cinemark (CNK) and IMAX downgraded by Goldman, both shares drop 3% premarket.
VMEO initiated by Cowen as outperform and Jefferies as a buy.
CAT says rising commodity prices a positive for it.
LiAuto (LI) May deliveries up 101% YoY.
ETSY buying Depop for $1.62 billion.
Ups, downs and premarket movers
Premarket
Source: Benzinga
Economic releases
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