Technology stocks fall with increasing bond yields, GameStop skyrockets

US stock markets changed little on Thursday morning, with traders assessing the continued improvement in the US economy and a sharp increase in bond yields.

Ticker Safety Last Change Change %
I: DJI DOW JONES AVERAGE 31779.89 -181.97 -0.57%
SP500 S&P 500 3891.88 -33.55 -0.85%
I: COMP NASDAQ COMPOSITE INDEX 13432.670813 -165.30 -1.22%

The Dow Jones Industrial Average rose 31 points, or 0.1%, while the S&P 500 and Nasdaq Composite fell 0.32% and 0.61%, respectively. Any gains for the Dow Jones would increase Wednesday’s record close, just below the 32,000 level.

Durable goods orders, excluding transportation, increased 1.1% month-on-month in January, outpacing the 0.7% growth that analysts surveyed by Reinfitiv were anticipating, and initial claims for unemployment benefits dropped to 730,000 last week of 841,000 revised down from the previous week.

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Meanwhile, a second estimate for the fourth quarter’s gross domestic product showed that the US economy expanded at a robust annual rate of 4.1%, above the initial 4% impression.

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The signs of an improving economy helped to boost 10-year earnings by more than 8 basis points, to above 1.46%, its highest level in a year.

That is as the House of Representatives prepares for a vote, possibly on Friday, on President Biden’s $ 1.9 trillion COVID-19 aid package.

WHY GAMESTOP’S ACTIONS INCREASED 104% WEDNESDAY

Ticker Safety Last Change Change %
GME GAMESTOP 132.53 +40.83 + 44.53%

In stocks, GameStop Corp. shares continued to climb after doubling on Wednesday after news that CFO Jim Bell was forced out by Ryan Cohen, founder of online pet food provider Chewy, whose venture capital firm has accumulated nearly 10% of actions. The New York Stock Exchange caused a halt in trading shortly after opening due to volatility.

Ticker Safety Last Change Change %
AMC AMC ENTERTAINMENT HOLDINGS INC 9.93 +0.82 + 9.00%
BBBY BED BATH & BEYOND INC. 27.47 +0.09 + 0.33%
KOSS KOSS 30.05 +11.61 + 62.96%

Other shares that have recently been subject to short-squeezes, including Bed Bath & Beyond Inc., AMC Entertainment Holdings Inc. and Koss Corp. they were also trading high.

Ticker Safety Last Change Change %
TSLA TESLA INC. 717.59 -24.43 -3.29%

Elsewhere, Tesla Inc. has informed workers that it will temporarily halt production of its Model 3 sedan at its plant in Freemont, California, Bloomberg said, citing a person familiar with the matter.

Ticker Safety Last Change Change %
BBY BEST BUY 105.89 -7.35 -6.49%

In earnings, Best Buy Co. reported mixed quarterly results and warned that comparable sales could drop by up to 2% in the current fiscal year, as demand slows down from levels induced by the pandemic.

Ticker Safety Last Change Change %
BUD ANHEUSER-BUSCH INBEV 60.98 -4.20 -6.44%

Anheuser-Busch InBev reported better-than-expected earnings and revenues, but margins were under pressure because the company used more higher-priced disposable cans as domestic consumption increased during the pandemic.

Ticker Safety Last Change Change %
SUN n / a n / a n / a n / a

Domino’s Pizza lost earnings and revenue because same-store sales growth slowed to 11.2%, from 17.5% in the previous quarter. The pizzeria chain projects a global growth in retail sales of 6% to 10% in the next two to three years.

In commodities, West Texas Intermediate crude dropped 35 cents to $ 62.87 a barrel, while gold fell $ 18.60 to $ 1,779.30 an ounce.

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European markets traded mixed with Britain’s FTSE 100 up 0.31%, France’s CAC 40 up 0.11% and Germany’s DAX 30 down 0.1%.

In Asia, China’s Shanghai Composite index rose 0.59%, Hong Kong’s Hang Seng index rose 1.2% and Japan’s Nikkei 225 rose 1.67%.

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