Below are the most important news, trends and analyzes that investors need to start their trading day:
1. Stocks will fall after Tuesday’s change on Wall Street
Traders work on the floor of the New York Stock Exchange.
NYSE
US futures fell on Wednesday, a day after the wild Wall Street trip, which saw the Nasdaq regain almost all of a nearly 4% loss to close at just 0.5%. . The S&P 500 reversed a 1.8% drop to close slightly, breaking the five-session losing streak. The Dow Jones Industrial Average eliminated a 360-point drop, or more than 1%, to close slightly higher for the third straight session.
Tuesday’s change, especially in technology stocks, came after Federal Reserve Chairman Jerome Powell told the Senate Banking Committee that inflation remains “soft” and that the economic outlook is still “highly uncertain “due to the pandemic. This alleviated fears of a change in central bank policy. Powell appears Wednesday before the House Financial Services Committee in the second and final part of his six-month economic testimony in Congress.
Food and Drug Administration staff supported Johnson & Johnson’s Covid-19 vaccine for emergency use, a critical step in bringing a third shot to the U.S. market. The staff report is intended to inform the FDA’s 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 bounces and a fund manager with a hot hand may be the reason
In this photo illustration, you see a Tesla logo shown on a smartphone with the bag graphic in the background.
Omar Marques | LightRocket | Getty Images
Tesla’s recovery in the premarket trade moderated after a major recovery on Tuesday. At one point, as bitcoin prices plummeted, shares fell 13%. Tesla has recently revealed an investment in bitcoin. At the close on Tuesday, it recovered most of those losses to end with just 2.2%. However, Tesla’s four-session slide topped 11%, dragging large-flying stocks to red by almost 1% for 2021. Over the past twelve months, it still rose 287%. .
Cathie Wood of Ark Invest, who has had a hot hand recently, raised more than $ 120 million in Tesla shares during Tuesday’s defeat and subsequent comeback. The purchase of Wood may have helped bring about the change at Tesla, Jim Cramer reported on CNBC.
Wood told Bloomberg on Tuesday that it is particularly bullish on Tesla’s shuttle service as a bridge to autonomous driving. “We don’t think many analysts are giving credit to Tesla for being self-sufficient. If they were, the shares would be much higher,” he added.
3. Bitcoin bounces again exceed $ 50,000
Costfoto | Barcroft Media | Getty Images
Wood, also a bitcoin bull, told Bloomberg: “” We are very positive with Bitcoin, we are very happy to see a correct correction here, there is no up market. “Bitcoin rose again above $ 50,000 on Wednesday, after a big sale. Bitcoin has risen more than 70% to date and more than 400% in the last 12 months.
Square said Tuesday it bought bitcoin worth $ 170 million. The fintech company led by Twitter CEO Jack Dorsey last year bought the world’s largest cryptocurrency worth $ 50 million. Dorsey, one of Bitcoin’s best-known proponents, predicted that it would end up becoming the “single currency” of the Internet.
4. The GameStop CFO will cease after the Reddit-driven stock concentration
A GameStop store is shown in New York City on January 29, 2021.
Carlo AllegriI | Reuters
GameStop chief financial officer Jim Bell will step down next month. The video game retailer said Bell’s resignation was not due to any disagreement with the company regarding its operations, including accounting principles and practices. A source told Reuters that Bell’s exit was unrelated to the recent wild swings fueled by Reddit in GameStop shares. However, the source said GameStop started its exit, in a signal that was not considered appropriate as the retailer moves into a technology-oriented business.
5. Lowe’s earnings estimates exceed in-store sales
A Lowe’s hardware store in Philadelphia.
Mark Makela | Reuters
Lowe’s shares rose 1% in pre-market trading after home improvement retailer said on Wednesday that sales at the same store in the fourth quarter were up 28% as consumers spent more on projects of home during Covid. Adjusted quarterly earnings of $ 1.33 per share on revenue of $ 20.31 million exceeded expectations. Lowe’s reiterated the forecast it gave on an investors ’day in December, when its chief financial officer said home improvement sales are likely to decline in 2021 as more people are vaccinated and spend more time away from home.
– Reuters contributed to this report. Follow all developments on Wall Street in real time with the CNBC Pro Live Marketing Blog. Get the news about the pandemic with our coronavirus block.