Dow edges up after Fed’s Beige Book, AMC soars 95%
AMC share surged over 100% prompting an NYSE trading halt
UBS Managing Director and Senior Portfolio Manager Jason Katz argues 2021 earnings could be 40 percent higher than the previous year.
U.S. equity markets ticked higher Wednesday as investors digested the Federal Reserve's latest assessment of the U.S. economy.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 41794.6 | -257.59 | -0.61% |
| SP500 | S&P 500 | 5712.69 | -16.11 | -0.28% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18179.984429 | -59.93 | -0.33% |
The Dow Jones Industrial Average added 25 points, or 0.07%, while the S&P 500 and the Nasdaq Composite ticked up 0.15% and 0.14%, respectively as all three of the major averages inched closed to all-time highs.
The quiet session came as the Federal Reserve's Beige Book showed optimism over the outlook for the U.S. economy while noting pricing pressures and the difficulties companies were having in finding workers.
This as West Texas Intermediate crude oil topped $69 for the first time in nearly three years before paring its gains. The energy component closed up $1 at $68.71 per barrel.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND - USD ACC | 74.29 | +2.27 | +3.15% |
| XLE | ENERGY SELECT SECTOR SPDR ETF | 89.57 | +1.54 | +1.75% |
BIDEN SUSPENDS ALASKA OIL, GAS LEASES IN ARCTIC NATIONAL WILDLIFE REFUGE
In stocks, JBS SA says the "vast majority" of its nine U.S. plants will be up and running on Wednesday after the meat producer took them offline following a cybersecurity attack. The company produces about 25% of U.S. beef supplies.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JBSAY | JBS | 12.37 | +0.39 | +3.26% |
AMC Entertainment Holdings Inc. shares hit a record following news that hedge fund Mudrick Capital on Tuesday flipped the 8.5 million shares it had acquired earlier in the day for a profit. AMC’s stock has soared 165% since the beginning of last week. The company also announced new perks for retail investors including a communication portal and free popcorn and screenings. The stock was briefly halted by the New York Stock Exchange.
Another so-called meme stock, BlackBerry Ltd., also saw huge gains.
AMC THROWS RETAIL INVESTORS A BONE
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMC | AMC ENTERTAINMENT | 4.35 | -0.16 | -3.55% |
| BB | BLACKBERRY LTD. | 2.25 | -0.02 | -0.88% |
In earnings, Zoom Video Communications Inc. reported earnings and revenue that blew past Wall Street estimates but warned the strong growth experienced during the pandemic was set to slow.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ZM | ZOOM VIDEO COMMUNICATIONS INC. | 75.54 | -0.06 | -0.08% |
| AAP | ADVANCE AUTO PARTS INC. | 37.45 | +1.20 | +3.31% |
Advance Auto Parts Inc said quarterly profit nearly tripled versus a year ago as sales grew by a record 23.4%. The company raised both its full-year sales and full-year same-store sales outlook.
In deals, Etsy Inc. agreed to acquire privately-owned fashion marketplace Depop for $1.63 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ETSY | ETSY INC. | 52.27 | -0.50 | -0.95% |
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Overseas bourses were mixed.
European markets rallied across the board with Germany’s DAX 30 rising 0.23%, Britain’s FTSE 100 advancing 0.39% and France’s CAC 30 climbing 0.49%.
In Asia, Japan’s Nikkei 225 jumped 0.46% while Hong Kong’s Hang Seng index and China’s Shanghai Composite fell 0.58% and 0.76%, respectively.