Dow Jones fell more than 300 points in early trading, GameStop, AMC continued to rise | Anue Juheng-US Stocks

The Wall Street battle between retail investors and hedge funds, coupled with the recent outbreak of disputes over the supply of vaccines in Europe, reduced market risk sentiment. US stocks opened lower on Friday (29) and the Dow Jones Industrial Average fell by more than 300 points or almost 1%, the Nasdaq index fell 0.5%, the S&P 500 index fell 0.8% and the rate fell 0.04%. After the brokerage opened limited transactions, GameStop and AMC continued to increase.

Since earlier this week, Wall Street has been harassed by villagers on social media sites like Reddit. The army of retail investors has rallied and destroyed hedge funds, forcing hedge funds to hedge short positions in companies like GameStop and AMC.

In order to ease the frantic trading atmosphere, several brokerages once announced Thursday that they would impose trading restrictions on popular stocks like GameStop and AMC. After being criticized by retail investors, they opened limited operations. Popular stocks continued to rise. Friday, GameStop (GME-US) and AMC (AMC-US) opened higher 80% and 60% respectively.

News about vaccines. Recently, Germany, France, Spain and other European Union countries have run out of vaccine stocks. The European Union, the UK and AstraZeneca (AZN-US) have continued to escalate tensions over vaccine shipments.

On the other hand, the pharmaceutical company J & Johnson (JNJ-US) announced this Friday the results of the clinical trials, showing that its single-dose vaccine has 72% protection against the new coronavirus and 66% protection against virus variants. Johnson & Johnson (JNJ-US) fell more than 3% at the open.

Affected by news of the new crown’s global vaccine supply and tighter restrictions, the VIX panic index, which measures market pressure, rose more than 10%.

In terms of economic data, US personal spending in December decreased 0.2% compared to the previous month, although the contraction was less than market expectations, it still fell for two consecutive months.

From Friday (29) at 22 o’clock, Taipei time:

• The Dow Jones index fell 301.82 points or -0.99%, temporarily reporting 30301.54 points
• Nasdaq fell 61.78 points, or -0.46%, to 13,275.38 temporarily
• The S&P 500 Index fell 30.15 points or -0.80%, temporarily to 3.57.23 points
• Commissions and a half fell 1.09 points, or -0.04%, to 2934.03 points temporarily
• TSMC ADR fell 2.41% to $ 122.80 per share
• Yield on 10-year US Treasuries increased to 1,096%
• New York light crude oil rose 1.38% to $ 53.06 a barrel
• Brent crude oil rose 1.03% to $ 56.10 a barrel
• Gold rose 2.03% to $ 1,878.60 an ounce
• The US dollar index fell 0.06% to 90.37 points

Focus actions:

SKWS-US was up 15.68% to $ 184.84 in early trading.

F2021 First Quarter Financial Report Data:

• Revenue: $ 1.51 billion, a 69% annual increase, better than the $ 1.06 billion expected by FactSet survey analysts
• Non-GAAP diluted EPS: $ 3.36, a 100% annual increase, better than the $ 2.09 expected by FactSet survey analysts
• Non-GAAP operating profit ratio: 41.2%
• Operating cash flow for the quarter: $ 485 million

F2021 Second Quarter Financial Forecast:

• Revenues ranged from $ 1.125 billion to $ 1.175 billion, better than the $ 920 million that FactSet survey analysts expected.
• Non-GAAP Diluted EPS: $ 2.34, better than the $ 1.71 expected by FactSet survey analysts
• The gross profit margin is between 50.5% and 51%

Novavax (NVAX-US) rose 43.68% in early trading to $ 192.55.

The American pharmaceutical company Novavax announced Thursday that the results of its phase 3 clinical trial showed that its new corona vaccine is as effective as 89.3%, but is slightly less effective against the British variant of the virus, reaching 85 , 6% and has the lowest protection against the South African virus variant, only less than 50%.

Caterpillar (CAT-US) was up 1.55% to $ 187.20 in early trading.

Key figures for Q4 2020 earnings:

• Revenue: USD 11.2 billion, an annual decrease of 15%, in line with market expectations.
• Adjusted EPS: $ 2.12, an annual decrease of 22%, which is higher than Refinitiv’s consensus estimate of $ 1.49

2020 full year:

• Revenue: $ 41.7 billion, an annual decrease of 22%
• Adjusted EPS: $ 6.56, a 42% annual reduction

Daily key economic data:

• The annual growth rate of the US PCE index in December reported 1.3%, expected 1.2% and 1.1% earlier.
• The annual growth rate of the basic US PCE index in December registered 1.5%, which is expected to be 1.3% and 1.4% earlier.
• The monthly growth rate of personal spending in the United States in December reported-0.2%, the previous value was revised downward from-0.4% to-0.7%

• At 10:45 p.m. Taipei time, the Chicago PMI for January will be announced, which is expected to be 58.3 and the old value is 59.5
• At 23:00 Taipei time, the final value of US consumer confidence in January will be announced, which is expected to be 79.2 and the previous value is 79.2

Wall Street Analysis:

Deutsche Bank (Deutsche Bank) analysts said that after this week, all hedge funds will carefully study all short positions, and regulators will study individual collective transactions very carefully.

Luc Filip, chief investment officer at SYZ Private Banking, believes that GameStop’s plot cannot be ignored, and hedge funds lack key ties to those stocks in some way.

Seema Shah, chief strategist at Principal Global Investors, said hedge funds that have been hit have no choice but to sell their favorite holdings to raise cash to level their short positions. She believes that any downtrend is an opportunity to buy tech stocks.