Dow, S&P, Nasdaq rise over 1% each, GameStop falls 60%
GameStop posts biggest stock slide ever
U.S. equity markets rallied Tuesday as bipartisan COVID-19 relief talks appeared to be making headway on Capitol Hill.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 43750.86 | -207.33 | -0.47% |
| SP500 | S&P 500 | 5949.17 | -36.21 | -0.60% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19107.65077 | -123.07 | -0.64% |
The Dow Jones Industrial Average gained 476 points, or 1.58%, while the S&P 500 and the Nasdaq Composite advanced 1.39% and 1.56%, respectively.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP. | 27.36 | +0.90 | +3.39% |
| AMC | AMC ENTERTAINMENT | 4.58 | +0.00 | +0.10% |
| BBBY | NO DATA AVAILABLE | - | - | - |
| BB | BLACKBERRY LTD. | 2.41 | -0.03 | -1.23% |
GameStop Corp. shares fell for the second session as bulls and bears continue to do battle in the highly volatile stock. Shares plunged 60% to their largest one-day percentage drop ever. Other recent high flyers, including AMC Entertainment Group, Bed Bath & Beyond Inc. and BlackBerry Ltd. were also under pressure.
In Washington, President Biden met with 10 Republican Senators on Monday afternoon to discuss their approximately $618 billion COVID-19 aid package that would extend a third round of stimulus checks to some Americans, grant an additional $300 a week in supplemental unemployment benefits through June and provide $50 billion for small businesses. He lunched with U.S. Treasury Secretary Janet Yellen today who was also meeting with the Democratic caucus.
REDDIT TRADERS COULD KEEP TERRORIZING WALL STREET: GOLDMAN SACHS
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UPS | UNITED PARCEL SERVICE INC. | 132.65 | -1.07 | -0.80% |
| FDX | FEDEX CORP. | 292.29 | +0.21 | +0.07% |
Looking at corporate and earnings news, United Parcel Services Inc. said adjusted quarterly profit rose 27% year over year as the e-commerce boom fueled by the COVID-19 pandemic resulted in a surge in home-delivery demand. The company also received a boost from its role in delivering COVID-19 vaccines.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| PFE | PFIZER INC. | 26.02 | -0.70 | -2.62% |
Pfizer Inc. forecast $15 billion in sales from the COVID-19 vaccine it is producing along with BioNTech and raised its full-year outlook. Prior quarter sales from the vaccine were one-third of what was expected.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CVS | CVS HEALTH CORP. | 55.09 | +0.82 | +1.51% |
| COST | COSTCO WHOLESALE CORP. | 923.89 | -9.84 | -1.05% |
| WMT | WALMART INC. | 84.47 | -1.06 | -1.25% |
| WBA | WALGREENS BOOTS ALLIANCE INC. | 8.81 | -0.22 | -2.44% |
U.S. pharmacies including CVS, Costco, Walmart, Walgreens and others are expected to start receiving COVID-10 vaccines next week.
In deal news, Uber is buying alcohol delivery app Drizly for $1.1 billion.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| UBER | UBER TECHNOLOGIES INC. | 71.44 | +0.28 | +0.39% |
CEO Dara Khosrowshahi said the deal is an example of the company's push to diversify into new areas.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XOM | EXXON MOBIL CORP. | 120.57 | +0.09 | +0.07% |
| CVX | CHEVRON CORP. | 161.78 | +3.09 | +1.95% |
Exxon Mobil Corp. announced an additional $3 billion of expense reductions and reported its first annual loss in 40 years as the COVID-19 pandemic resulted in a sharp drop in demand for oil and gas. The oil giant also created a “Low Carbon Emissions” unit that will help reduce greenhouse gases by up to 20% by 2025. The oil giant reportedly held talks with rival Chevron during the height of the pandemic last year, as reported by the WSJ.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| HOG | HARLEY-DAVIDSON INC. | 32.65 | +0.72 | +2.27% |
Meanwhile, Harley-Davidson Inc. unveiled its five-year turnaround plan called “The Hardwire” as shipments to dealers plunged 32% from a year ago to their lowest level since 1997. Annual retail sales, meanwhile, sank 17% to the weakest since 1998.
Elsewhere, Tesla Inc. announced it would recall 134,951 Model S and Model X vehicles after a U.S. regulator warned their touchscreen displays could fail.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 311.18 | -19.06 | -5.77% |
Tech giants Alphabet Inc. and Amazon Inc. will report their quarterly results after the closing bell.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 211.48 | -2.62 | -1.22% |
| GOOGL | ALPHABET INC. | 175.58 | -3.30 | -1.84% |
In commodities, silver plunged $3.014, or 10%, to $23.38 an ounce a day after posting their largest gain in almost 12 years. Elsewhere in the space, gold fell $30.30 to $1,830.50 an ounce and West Texas Intermediate crude oil jumped $1.21 to $54.76 a barrel.
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Overseas markets were higher across the board with France’s CAC 40 leading the advance in Europe, trading up 1.86%, while Germany’s DAX 30 and Britain’s FTSE 100 climbed 1.56% and 0.78%, respectively.
In Asia, Hong Kong’s Hang Seng index gained 1.23%, Japan’s Nikkei 225 rallied 0.97% and China’s Shanghai Composite index added 0.81%.