Here are the most important news, trends and analyzes that investors need to start their trading day:
1. Stocks are set to decline after Tuesday’s change on Wall Street
Traders are working on the floor of the New York Stock Exchange.
NYSE
US futures fell on Wednesday, a day after the wild Wall Street rally, which saw Nasdaq pull out almost all of its losses by almost 4% to close just 0.5%. The S&P 500 reversed a 1.8% decline to close slightly, breaking a five-session loss. The Dow Jones industrial average erased a 360-point drop, or more than 1%, to close modestly above for the third straight session.
Tuesday’s revolution, especially in technology stocks, came after Federal Reserve Chairman Jerome Powell told the Senate Banking Committee that inflation is still “mild” and that the economic outlook is still “extremely uncertain” because of the pandemic. This has allayed fears of a change in central bank policy. Powell appears before the House Financial Services Committee on Wednesday in the second and final part of his six-month economic testimony mandated in Congress.
Food and Drug Administration staff have approved Johnson & Johnson’s Covid-19 vaccine for emergency use, a critical step in bringing a third blow to the US market. The staff report is intended to inform the FDA Advisory Committee on Vaccines and Related Biological Products, which will meet Friday to review J & J’s application for emergency use authorization. J&J shares were higher.
2. Tesla jumped and a fund manager with a hot hand may be the reason
In this photo illustration, a Tesla logo seen displayed on a smartphone with the stock chart in the background.
Omar Marques | LightRocket | Getty Images
Tesla’s recovery in premarket trading moderated after returning to a major rebound on Tuesday. At one point, as bitcoin prices fell, shares fell 13%. Tesla recently unveiled an investment in bitcoin. By Tuesday’s bell, it had recovered most of those losses to end with just 2.2%. However, the Tesla slide in four sessions totaled more than 11%, pulling the flight stock in the red by almost 1% for 2021. In the last 12 months, it has increased by another 287%.
Cathie Wood of Ark Invest, who had a hot hand recently, amassed more than $ 120 million worth of Tesla shares on Tuesday and the subsequent return. Wood’s purchase could have helped trigger the change in Tesla, Jim Cramer of CNBC posted on Twitter.
Wood said Tuesday that Bloomberg is particularly optimistic about Tesla’s service as a bridge to self-driving. “We don’t think many analysts are giving Tesla credit for autonomy. If it were, the stock would be much bigger,” she added.
3. Bitcoin return, returning over 50,000 USD
Costfoto | Barcroft Media | Getty Images
Wood, also a bitcoin bull, told Bloomberg: ““ We are very positive about Bitcoin, we are very happy to see a healthy correction here, there is no direct market. “Bitcoin rose over $ 50,000 on Wednesday, after a big sale Bitcoin has grown by over 70% so far and over 400% in the last 12 months.
Square said Tuesday it bought $ 170 million worth of bitcoin. The fintech company led by Twitter CEO Jack Dorsey bought the world’s largest cryptocurrency worth $ 50 million last year. Dorsey, one of bitcoin’s best-known supporters, once predicted that it would eventually become the “single currency” of the Internet.
4. GameStop CFO to give up after the Reddit-led stock rally
A GameStop store is illustrated in New York, January 29, 2021.
Carlo AllegriI | Reuters
GameStop CEO Jim Bell will step down next month. The video game retailer said Bell’s resignation was not due to any disagreement with the company over its operations, including accounting principles and practices. A source told Reuters that Bell’s exit has nothing to do with the recent wild swings fueled by Reddit from the GameStop stock. However, the source said its departure was initiated by GameStop, in a sign that it was not seen as the right fit as the retailer moves into a technology-oriented business.
5. Lowe’s is the best income of estimates, while sales in the same store increase
A Lowe’s hardware store in Philadelphia.
Mark Makela | Reuters
Lowe’s shares rose 1% in premarket trading after the home improvement retailer said Wednesday that its sales in the same store in the fourth quarter rose 28% as consumers spent more on housing projects during Covid. Adjusted quarterly earnings of $ 1.33 per share on revenue of $ 20.31 billion exceeded expectations. Lowe’s reiterated the forecast he gave on an investor day in December, when the chief financial officer said home improvement sales are likely to fall in 2021, as more people will be vaccinated and spend more time in outside their homes.
– Reuters contributed to this report. Follow all the developments on Wall Street in real time with CNBC Pro’s live marketing blog. Get the latest pandemic information with our coronavirus blog.