The S&P 500 erased earlier losses and rose slightly to a record on Monday as investors prepared for a busy week of earnings featuring reports from the largest tech companies.
 | MON, JAN 25, 2021 | | | | DOW | | NAME | LAST | CHG | %CHG | | AAPL | 142.92 | +3.85 | +2.77% | | INTC | 55.44 | -1.22 | -2.15% | | MSFT | 229.53 | +3.58 | +1.58% | |
| | S&P 500 | | NAME | LAST | CHG | %CHG | | AAPL | 142.92 | +3.85 | +2.77% | | F | 11.29 | -0.23 | -2.00% | | GE | 10.99 | -0.12 | -1.08% | |
| | NASDAQ | | NAME | LAST | CHG | %CHG | | AAPL | 142.92 | +3.85 | +2.77% | | INTC | 55.44 | -1.22 | -2.15% | | AMD | 94.13 | +1.34 | +1.44% | |
| |
Trading in GameStop is not for the faint of heart — the company's shares more than doubled and within two hours turned red amid a battle between short sellers and an army of retail investors. Shares of the brick-and-mortar videogame retailer soared as much as 145% to a record high of $159.18 amid extreme trading volume and multiple halts. Enthusiastic retail investors active in online chat rooms continued to encourage each other to pile on and squeeze out short sellers.  One post Monday on the popular "wallstreetbets" Reddit forum said, "IM NOT SELLING THIS UNTIL AT LEAST $1000+ GME." The post quickly drew more than 5,000 comments. Other heavily shorted names, including Bed Bath & Beyond, also jumped higher on Monday amid the retail buying frenzy. However, GameStop briefly turned negative in midday trading and eventually ended up 18%, way off its session high. Highly speculative action intensified worry that parts of the market had detached from fundamentals and could cause the broader market to take a hit when the mania ends.
"It would not be obscene to see this pull back more," Jake Wujastyk, chief market analyst at TrendSpider, wrote in a note. "It's like gravity – if you throw a ball into the air really hard, it will go high but eventually come back to earth." |
Post a Comment