White House press secretary Jen Psaki answers reporters’ questions about Janet Yellen and the increase in GameStop shares.
US stock markets rebounded on Thursday morning, as investors digested the fourth quarter’s gross domestic product reading online and another batch of technology heavyweight profits.
The Dow Jones Industrial Average was up more than 400 points, or 1.6%, while the S&P 500 and Nasdaq Composite were up by 1.5% and 1%, respectively. The gains come after Wednesday’s S&P 500 fell into negative territory for the year.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| I: DJI | DOW JONES AVERAGE | 30752.49 | +449.32 | + 1.48% |
| SP500 | S&P 500 | 3803.1 | +52.33 | + 1.40% |
| I: COMP | NASDAQ COMPOSITE INDEX | 13397.591781 | +126.99 | + 0.96% |
They also struggled with online brokers who were cracking down on trades with high-profile names like GameStop Corp., who witnessed extreme volatility amid a slight squeeze.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP | 395.00 | +50.01 | + 14.50% |
| AMC | AMC ENTERTAINMENT HOLDINGS INC | 10.45 | -9.43 | -47.43% |
| NOK | NOKIA CORP. | 4.91 | -1.72 | -25.94% |
| BB | BLACKBERRY LIMITED | 17.37 | -7.55 | -30.30% |
The video game retailer dropped sharply on Thursday morning after Robinhood and other online brokers prevented users from buying shares due to recent volatility. The stock rose 1,642% from January 12 to Wednesday, with short sellers struggling to close their losing bets.
The shares of other companies that saw their shares rise, including BlackBerry Ltd., Bed Bath & Beyond Inc. and AMC Entertainment, were also under pressure.
In economic data, GDP grew at an annualized rate of 4% in the three months to December, according to a preliminary reading from the Department of Commerce. The reading came in line with the expectations of analysts consulted by Refinitiv.
Elsewhere, initial claims for unemployment benefits dropped to 847,000, from 914,000 revised upward the previous week. The Wall Street analysts polled by Refinitiv predicted a decline to 875,000. Continuous claims fell to 4.771 million, down from the expected 5.054 million.
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| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| AAPL | APPLE INC. | 139.64 | -2.42 | -1.70% |
| TSLA | TESLA INC. | 823.39 | -40.77 | -4.72% |
| FB | FACEBOOK INC. | 273.25 | +1.11 | + 0.41% |
Looking at the shares, Apple Inc., a component of Dow, reported that strong demand for the iPhone 12 resulted in the company’s first quarter of $ 100 billion in revenue in history. Sales in all product categories increased by double digits, as profit increased 35% over the previous year.
Meanwhile, Tesla Inc. reported its sixth consecutive quarter of profitability, but profits were well below Wall Street estimates. The electric car maker expects deliveries to grow at least 50% a year going forward.
Facebook Inc. announced that quarterly earnings and sales reached a record high in the last quarter of the year, driven by the home work environment caused by the COVID-19 pandemic and online Christmas shopping. However, the social media giant has also warned that its business faces some uncertainties in the form of regulatory investigations and changes to Apple’s operating system that could impact its advertising business.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| AAL | AMERICAN AIRLINES GROUP INC. | 18.80 | +2.24 | + 13.53% |
Meanwhile, American Airlines Group shares took off on Thursday, after the airline reported a lower than anticipated quarterly loss. The stock was launched as the next possible short-term candidate, following names like GameStop Corp.
In commodities, West Texas Intermediate crude rose 58 cents to $ 53.43 a barrel, and gold rose $ 12.70 to $ 1,842.20 an ounce.
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European markets traded lower, with France’s CAC 40 falling 0.06%, Germany’s DAX 30 weakening 0.83% and Britain’s FTSE 100 falling 1.12%.
In Asia, Japan’s Nikkei 225 fell 1.53%, China’s Shanghai Composite lost 1.91% and Hong Kong’s Hang Seng 225 fell 2.25%.