Short Squeezes, J&J, Microsoft and AMD Earnings, API – What’s New in the Markets


Short Squeezes, J&J, Microsoft and AMD Earnings, API - What's New in the Markets

By Geoffrey Smith – The stock market takes a break after an explosive standoff between retail investors and professional short sellers. There are earnings galore, including from Microsoft, General Electric , 3M (NYSE πŸ™‚ and AMD. President Joe Biden says he’s ready to give way on his stimulus plans and oil prices pick up momentum ahead of the release of the API inventory. Here’s what you need to know about the financial markets on Tuesday, January 26e.

1. Fun and Gamestop

The long-running war between retail traders and Wall Street short sellers exploded on Monday, as GameStop (NYSE :), Blackberry (TSX :), and Express – all heavily shorted stocks – were pressed for more. high, apparently at the behest of Reddit users. board named r / wallstreetbets.

GameStop (NYSE πŸ™‚ stock ended the day with an 18% gain after rising 141% earlier in the day, but it remains a heavily shorted stock: the rebound has encouraged more professional investors to pitting their resources against the retail army. which has dominated the market over the past year.

According to Bloomberg, hedge fund giants Ken Griffin of Citadel and Steve Cohen of Point72 have come to the rescue of Melvin Capital of Gabe Plotkin, one of many short sellers plagued by the short-term pressure. They injected a total of $ 2.75 billion into Melvin after losing about 30% this year.

GameStop stock increased 16% in pre-market trading. The blackberry stock was reported up 18%, but Express was down 8.4%.

2. The IMF updates its growth forecasts; Global trade exceeds pre-pandemic levels

The International Monetary Fund will update its growth forecast for the world this year at 8:00 a.m. ET (1:00 p.m. GMT). He is expected to revise his estimates downwards due to the spread of new strains of the Covid-19 virus that have prompted governments around the world to extend and tighten the lockdowns they put in place at the end of the year. last.

However, other data suggests that at least part of the global economy is booming. The volume of goods traded rose 2.1% in November, according to data from the Netherlands Bureau for Economic Policy Analysis, leaving it above its December 2019 level for the first time since the outbreak of the pandemic in February.

Global industrial production has also returned to pre-pandemic levels, as consumers shifted spending from services to goods over the past year.

3. Mixed ready-to-open stocks; consumer confidence, house price data due

US equity markets are expected to open mixed up, with investors showing signs of concern over the scum in some individual stocks at the start of the earnings season.

As of 6:30 a.m. ET, were up 16 points, or less than 0.1%, while they were down a similar amount and down 0.2%.

Comments from President Joe Biden on Monday saying he would be prepared to compromise on his $ 1.9 trillion stimulus packages have dented market confidence somewhat, putting investors on the lookout for any changes guidance in comments from Fed Chairman Jerome Powell. when he explains the Fed’s latest policy decisions at his press conference on Wednesday.

The data schedule is dominated by house price data at 9:00 am ET and the index at 10:00 am. Regional surveys of (manufacturing) and the Fed (services) are also due.

4. Microsoft, AMD, GE and J&J (NYSE πŸ™‚ lead the results parade

Earnings season is in full swing with pre-bell updates from a slew of industrial giants, as Microsoft (NASDAQ πŸ™‚ and chipmaker Advanced Micro Devices (NASDAQ πŸ™‚ update Silicon Valley after the fencing.

General Electric (NYSE πŸ™‚ has already reported earnings of 8 cents per share for the quarter, about 10% below consensus expectations, although the main cash flow indicator is better than expected. The market may be more interested in the Johnson & Johnson (NYSE πŸ™‚ update, however, given that the company is reportedly set to announce the results of key trials for its drug Covid-19. Disappointing news from Merck (NS πŸ™‚ and the Institut franΓ§ais Pasteur regarding their experimental vaccines on Monday upped the ante for other vaccine candidates.

NextEra Energy (NYSE :), Verizon (NYSE :), 3M and the defense giants are also reporting Lockheed Martin (NYSE πŸ™‚ and Raytheon (NYSE :), as well as restaurateur DR Horton (NYSE :).

The late lineup includes Starbucks (NASDAQ πŸ™‚ and Texas Instruments (NASDAQ :).

5 Oil rebounds; API data due

Crude oil picked up momentum after being caught up by general volatility in risk assets on Monday, as Dutch global trade data reassured the health of global demand.

As of 6:30 a.m. ET, prices were up 0.6% to $ 53.07 per barrel, while crude was up 0.5% to $ 55.94 per barrel.

The American Petroleum Institute will release its weekly data for the United States at 4:30 p.m. ET, as usual.


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