Dan Flax, chief economist at the Milken Institute, and Dan Flax, senior research analyst at Neuberger Berman, discuss the market’s recovery from the pandemic.
US stock futures fell on Wednesday morning, with investors battling rising bond yields and Federal Reserve Chairman Jerome Powell’s assurances that the central bank would continue to support the economy.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| I: DJI | DOW JONES AVERAGE | 31588.34 | +50.99 | + 0.16% |
| SP500 | S&P 500 | 3881.04 | -0.33 | -0.01% |
| I: COMP | NASDAQ COMPOSITE INDEX | 13383.598747 | -81.60 | -0.61% |
The Dow Jones Industrial Average was trading lower by 80 points, or 0.25%, while the S&P 500 and Nasdaq Composite were weaker at 0.36% and 0.76%, respectively.
The sale takes place at a time when the 10-year reference yield reaches a maximum of 1.42% in one year. Wall Street strategists fear that a move above 1.5% will have a negative impact on stocks.
The rise in bond yields comes after Powell told the Senate Banking Committee on Tuesday that the Fed would continue its asset purchase program and that inflation would remain under control. Powell will continue his two-day testimony on Capitol Hill before the House’s Financial Services Committee on Wednesday.
Looking at stocks, Johnson & Johnson’s single-dose COVID-19 vaccine was considered safe and effective by US regulators. The inoculation may receive approval from the Food and Drug Administration for emergency use until the end of the week.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| JNJ | JOHNSON & JOHNSON | 162.01 | +1.44 | + 0.90% |
Lowe’s Companies Inc. reported that quarterly same-store sales increased 28% year-over-year, but do-it-yourself projects that became popular during the pandemic may lose popularity as the economy normalizes. Both earnings and revenues were above Wall Street estimates.
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| LOW | LOWE’S COMPANIES INC. | 163.82 | -4.77 | -2.83% |
| SQ | SQUARE INC COM | 237.42 | -19.16 | -7.47% |
Payments company Square Inc. bought an additional $ 170 million in bitcoins at an average price of about $ 51,235 a currency, according to a press release released late on Tuesday. The new purchases increase the company’s bitcoin holdings to more than 5% of its cash and cash equivalents.
The announcement accompanied Square’s quarterly report, which exceeded analysts’ expectations for earnings and revenue, however, indicated that growth may be slowing.
TESLA’S BITCOIN BUYS FRIEND AND ENEMY
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 711.73 | +12.89 | + 1.84% |
Tesla Inc. was in focus after Arkie funds from investor Cathie Wood increased its position in the company. Electric car maker shares fell on bearish territory on Tuesday, down 21% from January’s high.
GAMESTOP CFO RESIGNS
| Ticker | Safety | Last | Change | Change % |
|---|---|---|---|---|
| GME | GAMESTOP | 47.79 | +2.85 | + 6.33% |
Meanwhile, GameStop’s chief financial officer, Jim Bell, will step down next month as the video game retailer shifts its focus to e-commerce, the company said on Tuesday. The decision came almost a month after GameStop’s stock was at the center of a retail frenzy.
In commodities, West Texas Intermediate crude rose 74 cents to $ 62.41 a barrel and gold fell $ 16.40 to $ 1,789.50 an ounce.
GET FOX BUSINESS ON THE MOVE BY CLICKING HERE
In Europe, France’s CAC 40 was trading at less than 0.16 and Britain’s FTSE 100 was down 0.1%. Germany’s DAX 30 outperformed, gaining 0.38% after the country’s economy grew 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 trading. In the region, China’s Shanghai Composite index lost 1.99% and Japan’s Nikkei 225 fell 1.61%.