Short sales, J&J, Microsoft and AMD earnings, API – What’s happening in the markets? By

© Reuters.

Yazar: Geoffrey Smith – Pauses to breathe after fierce rivalry between retail investors and professional short sellers. Microsoft, General Electric There is a streak of earnings, including 3M and AMD. President Joe Biden pointed out that he intends to support the incentive schemes, and oil prices gained momentum again ahead of the American Petroleum Institute (API) stock data.

What you need to know in financial markets on Tuesday, January 26th:

1. Entertainment and Gamestop

The long-running war between retail investors and Wall Street short sellers erupted on Monday. GameStop, Blackberry (TSX 🙂 and Express – all largely short-sold stocks – apparently climbed higher on the call of the Reddit user dashboard called r / wallstreetbets.

GameStop (NYSE 🙂 ended the day, earning another 18% after gaining 141% earlier in the day, but still remains largely a short-traded stock: the increase is more professional investors versus the retail trade army that has dominated the market over the past year encouraged it to withdraw its resources.

Hedge fund giants Ken Griffin of Citadel and Steve Cohen of Point72 rushed to rescue Gabe Plotkin’s Melvin Capital, one of the few short sellers who went wrong with the short selling jam, according to Bloomberg. This year, they injected Melvin with a total of $ 2.75 billion, after losing about 30%.

GameStop shares rose 16% in pre-market trading. Blackberry gained 18% but Express lost 8.4%.

2. IMF will update its growth forecast; World trade has passed pre-pandemic levels

The IMF will update the growth forecast of the world economy this year. It is expected to lower their estimates due to the spread of a new strain of the Covid-19 virus, which has led governments to prolong and tighten quarantines.

However, other data show that at least part of the world economy is successful. According to data from the Dutch Bureau of Economic Policy Analysis, the volume of commodity trade rose 2.1% in November and exceeded the December 2019 level for the first time since the outbreak began in February.

Global industrial production has also risen to pre-pandemic levels thanks to consumers’ shift from services to goods.

3. Stock markets will be mixed; consumer confidence and housing price data will be announced

US stock markets will open mixed. Investors are showing concern about the bubble in certain individual stocks early in the earnings period.

Similarly, the Nasdaq decreased by 0.2%, while it increased by 16 points.

Comments made by President Joe Biden on Monday that he would be willing to make concessions on the $ 1.9 trillion incentive plan reduced market confidence somewhat, turning investors’ attention to a press release by Fed Chairman Jerome Powell after the Fed meeting on Wednesday.

The data calendar includes housing price data and the Conference Board consumer confidence index. Surveys from Richmond Fed (manufacturing) and Dallas Fed (service) regions will also be published.

4. Microsoft, AMD, GE, and J&J lead earnings streak

The earning period continues at full speed. There are reports from Silicon Valley of Microsoft (NASDAQ 🙂 and chip maker AMD, as well as a number of industrial giants.

General Electric (NYSE 🙂 submitted a report of 8 cents per share for the quarter, 10% below estimates. However, the market may be more interested in the company’s reports as Johnson & Johnson is close to announcing key test results of the Covid-19 drug. The disappointing news of Merck and Institut Pasteur about their own experimental vaccines increased the risks for other vaccine candidates.

NextEra Energy (NYSE :), Verizon (NYSE :), 3M, Lockheed Martin (NYSE:), Raytheon (NYSE:) ve DR Horton (NYSE:) da var.

Last in line are Starbucks (NASDAQ 🙂 and Texas Instruments (NASDAQ :).

5. Oil is recovering; API data on the way

Crude oil gained some momentum after capturing the general volatility seen in risk assets on Monday. Dutch global trade data offered some assurance as to the health of global demand.

prices rose by 0.6% to $ 53.07, while Brent rose 0.5% to $ 55.94.

The American Petroleum Institute (API) will share its weekly US oil stock report at its usual time.

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