Some arcade-type episodes of corrective price adjustments on big tech giants like Amazon and Netflix are targeted but local sell-offs on some particular retail assets looks more like the result or sum of money management efforts taken by the market crowd. Individual investors and funds are trying to do it in a smart way by shedding particular shares which they have decided are too expensive to hold.
The stocks of Walmart Inc, which is the biggest retail corporation in North America, are nervously awaiting for tomorrow's Q4 earnings report. Its revenue and equity per share (EPS) figures are scheduled to be released before the Wall Street's open on Thursday, February 18, as well as the CEO's letter containing the forward guidance on the company's business plan and prospects for the rest of the year. Walmart operates a chain of budget hypermarkets, discount department and grocery stores with a very simple motto “Save Money, Live Better”.
Traditionally one of the major indicators for how the U.S. Dollar may move is the movement in U.S. Treasuries, but the connection between the two has been seen to weaken lately.
Such a correlation between the two is evident as Treasuries are a “Gold standard” for safe haven bonds with an ultimate security level. Any investments in Treasuries could be compared with having cash in your hands. So, any rise of Treasuries’ yields that enable for the creation of additional profits without any seeming risks could ignite additional demand for the Greenback and that could lead to its strengthening.
The U.S. stock market is closed this Monday because of Presidents' Day, while the whole of China celebrates its Lunar New Year vacations. By the way, the Year of the Metal Ox or Bull begun on February 12. The Chinese hieroglyphic symbol 牛 is attributed to the very same Bull, and it is pronounced similar to "niu" in English transliteration, which in turn sounds similar to "new". Even the intonation of the sound is phonetically similar to the ascending tone of the word "new" in the "new year" combination.
The hot season of corporate reports is going on, and Coca-Cola, the largest producer of soft drinks in the world, with more than $36.6 billion in sales last year, is planning to release its Q4 earnings today. Obviously, the results were under pressure during the pandemic. Numerous cafes, eatery pit stops and restaurants were initially closed and then reopened to invite a very limited number of customers to their establishments and, as a result, the usual volumes of beverages were not ordered. However, the food retailers and delivery networks allowed Coca-Cola to get $7.
Yesterday Bitcoin, a leading digital currency, posted a new all-time high above $48,000 a coin. It may seem remarkable that 25% of the gains were accumulated over the period of two days from $38,000, and after famous business magnate Elon Musk claimed that Tesla has invested $1.5 billion in Bitcoin.
Such news in itself could spark investors’ attention to the asset. But this could be seen as an expandable reason.
The set of major U.S. stock indexes, including the S&P500 and the Dow Jones Industrial Average (DJIA), not only quickly recovered from temporary and very limited losses in response to the release of a weaker-than-expected labour market release on Friday, February 5, but also updated their historical peaks again in early hours of Monday.
While the cool down of volatility on the part of flash mob retail traders from Reddit's WallStreetBets during this week raised the confidence of many market participants that the situation could become more stable, there was a lack of fresh and clear drivers.
One of the drivers could be the particular statistical fact cited by Bloomberg that the number of Americans who received at least one dose of the vaccine is now more than 26.5 million, which exceeded the 26.3 million who have been diagnosed with the disease so far.
The oil market seems to be awakening to a cloudy beginning of February and, as a result, it cannot see its shadow. Just like a groundhog, who knows that such a circumstance signals an early spring, the oil market may also assume a turnaround is on its way. Such an analogy may seem fitting as Brent crude benchmark prices topped $57.7 per barrel on February 2, which was exactly the same level that was recorded on the same day last year. A true celebration of another Groundhog Day with hopes of an early economic recovery.
A handful of turbulent welters shuffled the deck of cards in a rather freakish style in both the United States and European markets over the past two days and nights. The populist flash mob of private, small traders' has originated or organised over online forums, such as Reddit, to force short-selling hedge funds to reverse their big short positions on a series of roadside stocks.