Federated Hermes CIO Stephen Auth says that GameStop’s big squeeze is not the ‘first time we’ve seen an enrichment scheme’ and there is still a ‘buying opportunity’ in the broader market.
U.S. stock markets plummeted on Friday as a wild week of trading on Wall Street ended amid a large volume driven by unusual trades in a handful of stocks, including GameStop and AMC.
LIVE UPDATES: AMC, GAMESTOP IN PLAY
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| I: DJI | AVERAGES DOW JONES | 29982,62 | -620.74 | -2.03% |
| SP500 | S&P 500 | 3714.24 | -73.14 | -1.93% |
| I: COMP | NASDAQ COMPOSITE INDEX | 13070,69452 | -266.46 | -2.00% |
The Dow Jones Industrial Average fell 620 points or 2%, while the S&P 500 and Nasdaq Composite were weaker at approximately the same value.
CITADEL SHOOTS AT ROBINHOOD LINK
The sale comes after Thursday’s top averages recovered part of their losses that followed the biggest single-day drop since October. The stock markets have traded unsteadily in recent weeks amid growing concern about a stock bubble and an increase in short sales.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP CORP | 325.00 | +131.40 | + 67.87% |
| AMC | AMC ENTERTAINMENT HOLDINGS INC | 13.26 | +4.63 | + 53.65% |
| BB | BLACKBERRY LIMITED | 14.10 | -0.55 | -3.75% |
| BBBY | BED BATH & BEYOND INC. | 35.33 | +1.69 | + 5.02% |
Looking at the shares, the shares of GameStop Corp. more than doubled on Friday morning after the Robinhood trading app eased some restrictions on trading, the day after preventing customers from entering “buy” orders. Other shares that were also subject to the measures include AMC Entertainment Holdings, BlackBerry Ltd. and Bed Bath & Beyond Inc., which also recorded major upward movements.
Robinhood raised the limits on additional shares on Friday, including Starbucks and Moderna.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| SBUX | STARBUCKS CORPORATION | 96.81 | -1.34 | -1.37% |
| MRNA | MODERNA INC. | 173.16 | +13.61 | + 8.53% |
Elsewhere, Johnson & Johnson said a large study found that its COVID-19 vaccine was 72% effective in the U.S. and 66% effective overall.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| JNJ | JOHNSON & JOHNSON | 163.13 | -6.03 | -3.56% |
In earnings, a trio of Dow members released their quarterly results Friday morning.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| CVX | CHEVRON CORP. | 85.22 | -3.79 | -4.26% |
| CAT | CATERPILLAR INC. | 182.64 | -1.66 | -0.90% |
Chevron Corp. reported its first annual loss in four years, when the COVID-19 pandemic reduced travel, resulting in a sharp drop in demand for oil and gas.
Caterpillar Inc. reported quarterly gains that were down 29% from the previous year, but exceeded estimates as demand for its equipment was hampered by the prolonged economic slowdown caused by the pandemic.
| Ticker | Safety | Last | change | Change % |
|---|---|---|---|---|
| HON | HONEYWELL INTERNATIONAL INC. | 195.37 | -7.47 | -3.68% |
| LLY | ELI LILLY & COMPANY | 207.97 | -2.15 | -1.02% |
Honeywell International Inc. recorded quarterly earnings and sales that exceeded expectations as all business segments were stronger than expected. The technology and manufacturing company released an online forecast for fiscal year 2021.
Meanwhile, Eli Lily & Co. said that quarterly profit grew 42% year over year, driven by the demand for its cancer and diabetes drugs. The company said sales of its COVID-19 therapy have also increased.
In commodities, West Texas Intermediate crude rose 14 cents to $ 52.20 a barrel, and gold jumped $ 9.40 to $ 1,847.30 an ounce.
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