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Global Market Square

By on January 27, 2021

The U.S. stock market closed Wednesday with huge losses when compared to Tuesday. The market is also suffering from increased stock speculation in several high-flying stocks, notably Gamestop, which has risen more than 1,000% in the past weeks.

All sectors closed with a notable weakness:

  • Sector                          Chg Wednesday
  • Basic Materials             -3.38%    
  • Consumer Cyclical      -4.66%    
  • Consumer Defensive   -2.32%    
  • Energy                            -1.72%   
  • Financial Services        -3.28%   
  • Healthcare                     -3.80%   
  • Industrials                      -1.88%  
  • Technology                     -2.34%  
  • Utilities                            -3.84%  

While we expect the economy to increase its recovery with the massive rollout of vaccines, the Biden administration has promised 300 million vaccines, signifying that the “Herd Immunity” percentages will be realized.   

The Federal Reserve Bank held its current interest rates close to zero and its asset purchases at the same steady pace as the U.S. economy continues to be impacted by the pandemic.

“We have not won this yet,” Fed Chairman Jay Powell said, which clearly defines his views.

Some Wall Street stalwarts reported earnings. We highlight two:

  • Apple (AAPL) reported its biggest-ever net profit as its revenues increased $111.4 billion, and its net profits rose 29% to $28.8 billion; this figure surpassed analysts’ expectation of 6.3%. Apple stock closed at $141.60, down $1.56.
  • Tesla (TSLA) blew past the Street’s expectations for revenue growth in the fourth quarter of 2020, but it did not reach the earnings forecast, impacting its shares immediately. It showed better than forecast revenue of $10.74 billion for the quarter, rising 46%, and its quarterly income increased $270 million from $105 million the year before, and Wall Street had been expecting $1.01 per share. Its stock closed at $823.58, dropping $59.51.

Wall Street summary for January 27, 2021:

  • The Dow Jones Industrial Average closed at 30,303.17, down 633.87 points, or 2.05%.
  • The Standard & Poor’s 500 closed at 3,750.77, down 98.85 points, or 2.57%.
  • The Nasdaq Composite Index closed at 13,270.60, down 355.47 points, or 2.61%.
  • The Birling Capital Puerto Rico Stock Index closed at 2,057.13, down 55.53 points, or 2.63%.
  • The U.S. Treasury 10-year note closed at 1.04%
  • The U.S. Treasury 2-year note closed at 0.12%

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