Here are today’s market moves:
S&P 500 down 0.15% to 3,849.62
Dow Jones down 0.074% to 30,937.04
Nasdaq down 0.073% to 13,626.06
Gold: $1,851.38
Bitcoin: $32,085
US10Y: 1.036%
What Happened?
U.S. stocks slipped on Tuesday, a day after stock indexes hit records. Investors are waiting for earnings results from major companies, including Microsoft, Apple, Facebook, and Tesla this week.
GameStop stock increased 92% to 147.98 as retail traders on Twitter and Reddit piled into the stock. It was the most traded equity in the market today, with $20 billion in volume.
GameStop short-sellers have lost $5 billion this year as the day-trading army over at Reddit’s Wall Street Bets squeezed their short positions.
Reddit traders are taking on Wall Street pros at their own game, claiming that stocks always go up and piling into stocks such as GameStop, AMC, and BlackBerry. During the pandemic, millions of people stuck at home with free time and extra cash have turned to apps such as Robinhood to day trade.
With more fiscal stimulus expected in the coming months, some traders are speculating that stocks have further room to run.
U.S. consumers’ outlook on the economy improved in January, according to The Conference Board. Consumer confidence rose to 89.3 in January, from 87.1 in December.
Yesterday, Janet Yellen was confirmed as the first female Treasury Secretary.
What Else?
This Week
Monday: Earnings expected from Kimberly-Clark.
Tuesday: Earnings expected from 3M, General Electric, Microsoft, Starbucks, Verizon, and Texas Instruments; Data on U.S. home prices and consumer confidence.
Wednesday: Earnings expected from Apple, Facebook, and Tesla; FOMC monetary policy decision and briefing by Chair Jerome Powell.
Thursday: Weekly jobless claims and fourth-quarter GDP released; Earnings expected from Altria, Mastercard, McDonald’s, and Visa.
Friday: Earnings expected from Chevron, Caterpillar, and SAP.