Villere & Co. partner and portfolio manager, Sandy Villere, talks about her investment strategy for the current market.
The US stock markets were mixed on Friday morning, with the 10-year yield falling from its highest level in a year.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| I: DJI | DOW JONES AVERAGE | 31201.82 | -200.19 | -0.64% |
| SP500 | S&P 500 | 3823.32 | -6.02 | -0.16% |
| I: COMP | NASDAQ COMPOSITE INDEX | 13139.772544 | +20.34 | + 0.16% |
The Dow Jones Industrial Average was trading down 47 points, or 0.15%, while the S&P 500 and Nasdaq Composite were up 0.39% and 0.89%, respectively.
10-year Treasury in focus
Mixed trade comes with a 10-year yield dropping 4 basis points to 1.47%, a day after closing at 1.51%, its highest level in a year. The recent rise in bond yields has caused panic among investors concerned about a return to inflation. The strategists suggested that the 10-year move above the 1.5% level, which equates to the dividend yield of the S&P 500, could put more pressure on the shares.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| JNJ | JOHNSON & JOHNSON | 159.87 | -3.00 | -1.84% |
Looking at stocks, Johnson & Johnson’s one-shot COVID-19 vaccine is expected to receive approval from a Food and Drug Administration panel, paving the way for distribution to begin next week.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP | 128.99 | +19.84 | + 18.18% |
GameStop Corp. shares were indicated to open higher after shooting 142% in the previous two sessions. However, other stocks that are subject to high volatility, such as AMC Entertainment Holdings Inc., Bed Bath & Beyond Inc. and Koss Corp., were experiencing quieter trading activity.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| AMC | AMC ENTERTAINMENT HOLDINGS INC | 8.35 | +0.06 | + 0.78% |
| BBBY | BED BATH & BEYOND INC. | 26.20 | -0.09 | -0.34% |
| KOSS | KOSS | 19.26 | -2.27 | -10.54% |
Elsewhere, Twitter Inc. outlined plans to double revenue by 2023 with features like tips and paid subscriptions to “follow super” or access exclusive content from some accounts.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| TWTR | TWITTER INC. | 76.69 | +1.98 | + 2.65% |
In earnings, Salesforce.com Inc. reported earnings and earnings that exceeded expectations, but raised its full-year revenue forecast below what Wall Street expected.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| DKNG | DRAFTKINGS | 59.19 | +1.38 | + 2.38% |
| PENN | PENN NATIONAL GAMING | 113.24 | +3.55 | + 3.24% |
DraftKings Inc. reported pro forma revenue, increased 98% year over year in the three months to December, supported by a favorable sporting calendar and strong customer involvement. The sports betting platform raised its revenue forecast in 2021 to between $ 900 million and $ 1 billion, from $ 750 million to $ 800 million. Other gaming actions in focus.
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In commodities, West Texas Intermediate crude dropped 97 cents to $ 62.56 a barrel and gold, $ 16, to $ 1,759.40.
In Europe, Britain’s FTSE 100 was traded at less than 1.72%, while France’s CAC 40 and Germany’s DAX 30 were weaker at 0.89% and 0.31%, respectively.
The markets were hit hard in Asia, with Japan’s Nikkei 225 plummeting 3.99%, Hong Kong’s Hang Seng index losing 3.64% and China’s Shanghai Composite falling 2.12%.