- Nasdaq at record highs, Dow Jones subdued
- US to extend travel restrictions
- GameStop (GME.US) shares surge more than 50% in premarket trade
US indices launched today's session in mixed moods as investors brace for a busy week of corporate earnings, Federal Reserve meeting and set economic data. Nasdaq rose more than 1.0% while Dow Jones fell 0.20% and S&P 500 is trading slightly higher. Traders are still confident that President Joe Biden’s $1.9 trillion coronavirus relief proposal will be approved, despite opposition from some Republican lawmakers and the formal start of Donald Trump’s second impeachment trial. On Wednesday Fed will provide its interest rate decision and is expected to reinforce its commitment to a highly accommodative monetary policy and to clarify it won't taper anytime soon. This week will be the busiest of the corporate season to date, with more than one-fifth of the S&P 500 index and a third of Dow Jones listed companies will release their quarterly figures. Particular attention will be focused on the technology sector where Apple, Microsoft, Facebook and Tesla will announce their earnings results.
The US is likely to maintain the restrictions on travel from Brazil, UK, Ireland and 26 countries in Europe and extend it to South Africa to prevent the spread of new Covid-19 strains. Meanwhile US reported 132,537 new infections on Sunday, while the total number of cases surpassed 25 million. Since March at least 419,000 people have died from the disease in the US. At the moment 22.4 million doses of the Covid-19 vaccine have been administered, of which 3.3 million people have completed the two-dose vaccination regimen.
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US30 does not share the enthusiasm we can observe in tech sector. Index broke below the lower limit of the ascending channel on Friday. Today, one can see that the downward move is being continued after US open. If the current sentiment the sell-off may be extended to the support at 30350 pts which coincides with the 50 SMA (green line). Source: xStation5
GameStop (GME.US) stock jumped 50% in premarket trading, continuing its recent upward movement. Shares of a video game dealer are worth about 3-1 / 2 times more than at the beginning of January as bullish traders maintained their upper hand over short sellers. GameStop is also benefiting from a higher demand for video game demand amid the pandemic.
Shares of GameStop (GME.US) soared another 50% in premarket trading on Monday, following a 51% advance in the previous session as epic short squeeze continues. Only in January stock soared 245%, skyrocketing above $90 a share from just about $6 few months ago. Video game retailer has been a popular short target among investors and many still believe that stock will fall to $20 per share. If sellers will manage to regain control, then nearest key support lies at previous all-time high at the $63.42 level. Source: xStation5
Kimberly-Clark (KMB.US ) stock rose 1.6% in the premarket after the company posted quarterly earnings of $1.69 per share, above market expectations of $1.60 per share. Revenue also beat analysts' projections. The consumer products company will increase its quarterly dividend to $1.14 per share from $1.07 a share.
NCR (NCR.US) is willing to acquire ATM operator Cardtronics for $1.7 billion, or $39 per share, according to The Wall Street Journal citing people familiar with the matter. Earlier Investment firms Apollo Global and Hudson Executive Capital made an offer of $35 per share , but WSJ said that both companies are not willing to pay more for Cardtronics. NCR shares fell1.5% in the premarket.
Merck (MRK.US) stock fell more than 1% in premarket after the drugmaker announced that will close its Covid-19 vaccine program, due to inferior immune responses generated by its vaccine candidates. Company will still work on treatments for the Covid-19 virus. Merck shares fell 1.1% in premarket trading.
Moderna (MRNA.US) announced today that it’s accelerating work on a Covid-19 booster shot for recently discovered variant in South Africa, as the current vaccine provides only some protection.
