GameStop soars 104%, as Dow flirts with 32,000 for the first time
JPMorgan hit record high
U.S. stocks rallied Wednesday as investors shook off concerns over rising bond yields and continued to buy cyclical stocks sensitive to a recovering economy.
The Dow Jones Industrial Average rallied 425 points, or 1.35% to a fresh record, briefly touching the 32,000 level for the first time in histrory. While the S&P 500 and the Nasdaq Composite rose 1.13% and 1.35%, respectively.
The gains came as Federal Reserve Chairman Jerome Powell testified on Capitol Hill for a second day, reiterating that the central bank would continue to support the economy.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 44755.89 | -154.76 | -0.34% |
| SP500 | S&P 500 | 6046.65 | +14.27 | +0.24% |
| I:COMP | NASDAQ COMPOSITE INDEX | 19410.662282 | +192.50 | +1.00% |
JPMorgan hit a record high, helping lift financials, and energy stocks popped with ExxonMobil Corp. closing at its highest level in a year. This as West Texas Intermediate crude oil crossed above the $63 per barrel level.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JPM | JPMORGAN CHASE & CO. | 249.76 | -0.14 | -0.06% |
| XLF | FINANCIAL SELECT SECTOR SPDR ETF | 51.28 | +0.14 | +0.27% |
| XOM | EXXON MOBIL CORP. | 117.62 | -0.36 | -0.31% |
| XLE | ENERGY SELECT SECTOR SPDR ETF | 95.10 | -0.09 | -0.09% |
Continued interest in cyclical names came despite the benchmark 10-year yield settling at a one-year high of 1.388%. Wall Street strategists worry a move above 1.5% will have a detrimental impact on stocks.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP. | 27.27 | -1.78 | -6.13% |
Looking at stocks, late in the session, GameStop shares surged 104% and were halted on the New York Stock Exchange.
Chief Financial Officer Jim Bell will exit next month as the video game retailer shifts its focus to e-commerce, the company said late Tuesday. A Business Insider report said Bell was pushed out by Ryan Cohen, the founder of online pet food retailer Chewy, who's venture capital firm has amassed a nearly 10% stake in GameStop. The decision comes nearly a month after GameStop shares were at the center of a retail trading frenzy.
In healthcare, Johnson & Johnson's single-shot COVID-19 vaccine was ruled to be safe and effective by U.S. regulators. The inoculation could receive Food and Drug Administration approval for emergency use by week's end.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| JNJ | JOHNSON & JOHNSON | 154.81 | -0.27 | -0.17% |
Lowe’s Companies Inc. reported quarterly same-store sales spiked 28% year over year, but reiterated do-it-yourself projects that became popular during the pandemic could lose popularity as the economy normalizes. Both earnings and revenue were above Wall Street estimates.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LOW | LOWE'S COMPANIES INC. | 272.43 | -0.76 | -0.28% |
| SQ | BLOCK INC. | 88.55 | -0.23 | -0.26% |
Payment-company Square Inc. purchased an additional $170 million worth of bitcoin at an average price of around $51.235 a coin, according to a press release out Tuesday evening. The new buys increase the company’s bitcoin holdings to above 5% of its cash and cash equivalents.
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The announcement accompanied Square’s quarterly report which beat analyst expectations for both earnings and revenue, however, it indicated growth may be slowing.
TESLA'S BITCOIN BUY BOTH 'FRIEND AND FOE'
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 357.09 | +11.93 | +3.46% |
Tesla Inc. was in focus after investor Cathie Wood’s Ark Invest funds added to its position in the company. Shares of the electric-car maker slid into bear market territory on Tuesday, down 21% from their January high.
In Europe, France’s CAC 40 gained 0.31% and Britain’s FTSE 100 advanced 0.5%. Germany’s DAX 30 outperformed, up 0.8%, after the country’s economy grew at a faster than expected 0.3% in the fourth quarter.
Markets were hit hard across Asia with Hong Kong’s Hang Seng index falling 2.99% after the government raised the tax on stock trades. Elsewhere in the region, China’s Shanghai Composite index lost 1.99% and Japan’s Nikkei 225 fell 1.61%.