Monday , January 24 2022

New price cuts at Gamestop: Bond market sends Wall Street down



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New course hacks at Gamestop
The bond market is sending Wall Street down

The US stock markets are closing in red. One of the reasons for this is inflation problems. Meanwhile, Tesla stock is on a sharp downward trend, while the hype about Gamestop continues.

Significantly higher bond yields have sent Wall Street down. The background to this was rising inflation expectations and, at the same time, continued loose monetary policy in the US. Positive U.S. economic data provided inflation concerns in this environment. Incoming orders for January, the weekly labor market data as well as the second reading of the GDP data for the fourth quarter were better than expected.

“The market is booming. The rise in bond yields is putting stocks, especially growth stocks, under pressure,” said market strategist Sebastien Galy of Nordea Asset Management. After the record level of the previous day, the willingness to make a profit increased. The Dow Jones index lost 1.8 percent to 31,402 points, the S&P 500 lost 2.4 percent. The technology-heavy Nasdaq indices fell by 3.5 and 3.6 percent, respectively.

GameStop Corporation
GameStop Corporation 111.40

Among the individual values ​​was again the Gamestop Action in focus. After rising by 103 percent the previous day, it has now risen by a further 18.6 percent. The video game retailer announced that the chief financial officer would leave the company on March 26. According to the company, this step has nothing to do with a disagreement within the company. However, according to a report, the chief financial officer was put under pressure from investors, particularly shareholder Ryan Cohen, who recently joined the board of directors.

The American computer manufacturer HP Inc. benefited from the increased demand for computers during the corona pandemic and performed better than expected in the first quarter. The group had actually announced the business card after the US market closed, but then published the numbers at trade. After initially higher premiums, the price climbed 0.8 percent.

Tesla
Tesla 560.20

Tesla fell 8.1 percent. In the trade, reference was made to a report in which the production of the electric car manufacturer for the important Model 3 at a location in California is suspended for about two weeks. Chief Financial Officer Zach Kirkhorn recently warned that the shortage of semiconductors and difficulty in ports could temporarily affect the company.

Nvidia fell by 8.2 percent. The maker of digital graphics cards had presented strong results for the fourth quarter. The outlook for the key business with data centers is disappointing in the margin, a stockbroker said. Due to the first deliveries of vaccines against the corona virus, the American vaccine manufacturer Moderna had significantly more sales in the fourth quarter than in the previous year. However, the loss was also exacerbated by higher spending on research and development. Investors forgave the company for this, the share gained 2.5 percent.

Merck (+0.1 percent) takes over the US biopharmaceutical company Pandion Therapeutics for about 1.85 billion US dollars. Pandion is developing therapies for autoimmune diseases.

WTI oil price at 21-month high

After the strong plus of the previous day, oil prices are moving only moderately. A barrel of American diversity WTI rose 0.5 percent to its 21-month high of $ 63.53. The European Brent variety, on the other hand, just kept them in late trade. All eyes are already on the Opec + group meeting next week. It has about 8 million barrels per day of free production capacity and, according to one report, is considering reducing production cuts.

Crude oil (WTI)
Crude oil (WTI) 63.17

Of the Dollar index lost initially 0.4 percent after a seven-week low, but then recovered significantly. The euro then rebounded its premiums to $ 1.2168 from the previous evening. Market participants saw the first dollar weakness in connection with statements reiterated the day before by Federal Reserve President Jerome Powell that monetary policy would remain loose until there was substantial progress towards inflation and employment targets.

Ten years back about 1.50 percent

Yields on the U.S. bond market increased sharply. The ten-year yield on paper rose by 14.5 basis points to 1.53 percent, an annual high. Commerzbank noted that the growing yields of the US also reflected the legitimate assumption of the market that US government debt would continue to rise and that a higher supply of US government bonds could therefore be expected. In addition, an auction of seven-year-old treasure chests last night was extremely weak.

The price of gold fell significantly despite rising inflation concerns – weighed down by higher yields and the recovery of the dollar. The interest-free precious metal will become less attractive, it said. The troy ounce fell 1.9 percent to $ 1,772.

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