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Greenwich, Connecticut, is home to many U.S. hedge funds.
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Global equities died on Thursday, reacting to the forced sale of hedge funds following unprecedented investment by retail investors to buy sharply short stocks. The main US stock indices were mixed, but fortunately quiet after a hard Wednesday.
Shortly after the opening, the
Dow Jones industrial average
rose 263 points, 0.9%, while the
S&P 500
gained 0.8% and the
Nasdaq Composite
added 0.7%.
In Asia, which has had a hot start until 2021, the
Nikkei 225
finished 1.5% lower and the
Hang Seng
fell 2.6%.
He
Stoxx Europe 600
rebounded due to previous strong losses to change 0.2%.
He
S&P 500
on Wednesday it finished 2.6% lower, the worst show since October.
The financial turmoil was caused by the organized purchase of companies, including video game retailers
GameStop
(ticker: GME), software company
BlackBerry
(BB) and movie chain
AMC Entertainment
(AMC), which have had problematic financial behavior that has led many institutional actors to downsize their actions.
“The retail purchase forced several large hedge funds to recover the shares as soon as possible to limit the damage. [GameStop] it was the value of the most quoted stocks in the U.S. for the second day in a row in the middle of profit season, ”said Marshall Gittler, head of investment research at BDSwiss.
GME resources
(GME.AU), the Australian mining company that shares nothing in common with GameStop other than its GME symbol, rose 13% in Sydney.
Mark Haefele, general director of investment for UBS’s global wealth management, said the outlook remains bright, noting the S&P 500’s 68% jump from the March 2020 lows.
“After a rise of this magnitude, and with values close to record highs, it is understandable that short-term uncertainty will lead to increased volatility. In our opinion, however, attention is likely to return. towards the gains, the stimulus and the launch of the vaccine. We believe that the market trajectory in the medium term is still superior, “he said.
GameStop-led frenzy overshadows a key day for profits and economic news.
Gross domestic product rose 4% in the fourth quarter, with no estimates of 4.3%, while unemployment claims improved to 847,000 from 900,000 last week and exceeded expectations by 875,000.
apple
Shares (AAPL) fell 2.2% after the company said it was earning $ 1.68 per share, compared to estimates of $ 1.41. The company earned revenue of $ 111 billion, exceeding expectations of $ 103 billion.
Tesla
Shares (TSLA) fell 5.3% after the electric vehicle maker recorded a mixed quarter. The company earned 80 cents a share for lack of estimates of $ 1.03, while recording revenue of $ 10.74 billion, compared to a forecast of $ 10.4 billion.
Facebook
Shares (FB) gained 4.9% after the company exceeded revenue and earnings expectations, with a profit of $ 3.88 per share compared to estimates of $ 3.22, with revenue of $ 28 billion of dollars, exceeding expectations of $ 26.4 billion.
McDonald’s
(MCD) rose 0.5%, even after the company failed to meet expectations. The fast food chain said it earned $ 1.70 per share, lower than the estimated share of $ 1.78, with revenue of $ 5.31 million, below expectations of $ 5.37 million .
Twitter
(TWTR) has risen 2.7% on a weak day for technology as KeyBanc has upgraded shares to overweight the weight of the sector.
Write to Steve Goldstein at [email protected] and Jacob Sonenshine at [email protected]