GameStop, AMC gyrations hit Charles Schwab, TD Ameritrade with outages
TD attributed its app outage to 'unprecedented volumes' of activity
Reddit army doesn't have wherewithal to sustain big market losses: Portfolio manager
Jason Katz, UBS managing director and senior portfolio manager, argues that GameStop stock trading has created an atmosphere 'completely and utterly divorced from fundamentals.'
Mobile brokerage apps TD Ameritrade and Charles Schwab experienced outages early Wednesday amid early-morning market chaos -- some of it tied to heavy trading and short-selling in shares of AMC, GameStop and Blackberry.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMC | AMC ENTERTAINMENT | 4.45 | +0.11 | +2.54% |
| GME | GAMESTOP CORP. | 28.43 | +0.86 | +3.14% |
| BB | BLACKBERRY LTD. | 2.32 | -0.03 | -1.07% |
| SP500 | S&P 500 | 5917.11 | +0.13 | +0.00% |
"Please be aware that unprecedented volumes today may be causing limited access to the TD Ameritrade Mobile app. Please consider using our website or other platforms," TD tweeted Wednesday morning.
The issue was resolved later on and TD apologized for "the inconvenience," saying the company takes "the performance [and] reliability of our trading platforms very seriously."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| SCHW | THE CHARLES SCHWAB CORP. | 80.45 | +0.26 | +0.32% |
Charles Schwab, which owns TD, similarly said in a since-deleted tweet that "some clients are experiencing issues with online trading" due to a "technical issue."
US DURABLE GOODS ORDERS SHOW MODEST 0.2% DECEMBER GAIN
"We’re working to resolve the issue as quickly as possible," the company said. "Please do not place trades again, as duplicate orders may be created. We apologize for any inconvenience."
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Others on social media reported outages on the Robinhood app known for attracting new day traders.
Amateur investors contributed to a short squeeze that has boosted GameStop Corp. shares by 642% since Jan. 12.
AMATEUR INVESTORS TARGET GAMESTOP
Hedge fund Melvin Capital, which received a $2.75 billion infusion from other funds, covered its losing position on Tuesday afternoon, founder Gabe Plotkin told CNBC.
The investment includes $2 billion from Ken Griffin's Citadel and its partners and $750 million from Steven Cohen's Point72. Both are taking a non-controlling revenue share in Melvin, according to a company statement.
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Fox Business' Jonathan Garber contributed to this report.