Global Market Square
The U.S. stock markets finished the session higher Thursday, rebounding from Wednesday’s close, which was the worst since October.
At the center of this crisis is the company GameStop (GME), a public company facing a speculatory battle between day traders and hedge funds that has made the stock rise from $17.37 on Jan. 5, 2021, to close Wednesday at $237.29.
Gamestop is a company whose fundamentals look quite unappealing, with $5.16 billion in revenue and -$274.8 million in income. The company also closed 462 stores last year and does not represent the kind of story that would warrant so much furor.
On economic news, we note the following,
- Real Gross Domestic Product (GDP) increased at an annual rate of 4 percent in the fourth quarter of 2020, according to the “advance” estimate released by the Bureau of Economic Analysis. The results missed expectations as worsening coronavirus trends slowed the recovery.
- U.S. Initial Claims for Unemployment Insurance fell to 847,000, down 7.33% from 914,000 last week.
- U.S. New Single-Family Houses Sold rose 1.57% to 842,000, up from 829,000 last month.
- U.S. Durable Goods New Orders MoM fell to 0.16%, compared to 1.21% last month. This is lower than the long term average of 0.31%.
Wall Street summary for January 28, 2021:
- The Dow Jones Industrial Average closed at 30,603.36, up 300.14 points, or 0.99%.
- The Standard & Poor’s 500 closed at 3,787.38, up 36.61 points or 0.98%.
- The Nasdaq Composite Index closed at 13,337.16, up 66.56 points, or 0.50%.
- The Birling Capital Puerto Rico Stock Index closed at 1,981.09, down 76.04 points, or 3.70%.
- The U.S. Treasury 10-year note closed at 1.07%
- The U.S. Treasury 2-year note closed at 0.12%