Dan Flax, chief economist at the Milken Institute, and Dan Flax, senior research analyst at Neuberger Berman, discuss market recovery during a pandemic.
US stock futures were lower on Wednesday morning as investors grappled with rising bond yields and assurances from Federal Reserve Chairman Jerome Powell that the central bank would continue to support the economy.
| Ticker | Safety | Last | Change | Change% |
|---|---|---|---|---|
| I: DJI | DOW JONES AVERAGE | 31588.34 | +50.99 | + 0.16% |
| SP500 | S&P 500 | 3881.04 | -0.33 | -0.01% |
| I: COMP | NASDAQ COMPOSITE INDEX | 13383.598747 | -81.60 | -0.61% |
The Dow Jones Industrial Average traded 80 points or 0.25% lower, while the S&P 500 and Nasdaq Composite were 0.36% and 0.76% weaker, respectively.
The sale comes when the 10-year benchmark return hit a one-year high of 1.42%. Wall Street strategists fear that a move above 1.5% will adversely affect stocks.
The rise in bond yields comes after Powell told the Senate Banking Committee on Tuesday that the Fed would continue its asset purchase program and that inflation would remain under control. Powell will continue his two-day testimony on Capitol Hill before the House Financial Services Committee on Wednesday.
Looking at the stock, Johnson & Johnson’s one-time COVID-19 vaccine was considered safe and effective by US regulators. The vaccination could get Food and Drug Administration approval for emergency use by the end of the week.
| Ticker | Safety | Last | Change | Change% |
|---|---|---|---|---|
| JNJ | JOHNSON & JOHNSON | 162.01 | +1.44 | + 0.90% |
Lowe’s Companies Inc. reported that quarterly sales at the same store were up 28% year over year, but repeated DIY projects that became popular during the pandemic could lose popularity as the economy normalizes. Both revenues and revenues were above Wall Street estimates.
| Ticker | Safety | Last | Change | Change% |
|---|---|---|---|---|
| LOW | LOWE’S COMPANIES INC. | 163.82 | -4.77 | -2.83% |
| SQ | SQUARE INC COM | 237.42 | -19.16 | -7.47% |
Payment company Square Inc. bought an additional $ 170 million worth of bitcoin at an average price of about $ 51,235 per coin on Tuesday night, according to a press release. The new purchases increase the company’s bitcoin holdings to more than 5% of its cash and cash equivalents.
The announcement accompanied Square’s quarterly report, which exceeded analyst expectations for both earnings and earnings, but it indicated that growth may be slowing.
TESLA’S BITCOIN BUY BOTH ‘FRIEND AND FOE’
| Ticker | Safety | Last | Change | Change% |
|---|---|---|---|---|
| TSLA | TESLA INC. | 711.73 | +12.89 | + 1.84% |
Tesla Inc. gained attention after investor Cathie Wood’s Ark Invest funds increased its position in the company. Shares of the electric car manufacturer slid into bear market territory on Tuesday, down 21% from their January high.
GAMESTOP CFO Acts
| Ticker | Safety | Last | Change | Change% |
|---|---|---|---|---|
| GME | GAMESTOP | 47.79 | +2.85 | + 6.33% |
Meanwhile, GameStop’s Chief Financial Officer Jim Bell will step down next month as the video game retailer shifts its focus to e-commerce, the company said late Tuesday. The decision comes nearly a month after GameStop stock became the center of a retail trade.
In commodities, West Texas Intermediate crude oil rose 74 cents to $ 62.41 a barrel and gold fell $ 16.40 to $ 1,789.50 an ounce.
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In Europe, the French CAC 40 traded down 0.16 and the UK FTSE 100 down 0.1%. The German DAX 30 outperformed 0.38% as the country’s economy grew faster than expected at 0.3% in the fourth quarter.
The markets in Asia were hit hard with a Hong Kong Hang Seng index falling 2.99% after the government increased taxes on stock trading. Elsewhere in the region, China’s Shanghai Composite Index lost 1.99% and Japan’s Nikkei 225 lost 1.61%.