Federated Hermes CIO Stephen Auth says the GameStop big squeeze is not the ‘first time we’ve seen a get rich scheme’ and there is still a ‘buying opportunity’ in the broader market.
U.S. equity markets were lower Friday morning as a wild week of trading on Wall Street draws to a close.
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The Dow Jones Industrial Average was lower by 205 points, or 0.67%, in the opening minutes of trading while the S&P 500 and the Nasdaq Composite were weaker by 0.55% and 0.31%, respectively.
The early selling comes after the major averages on Thursday recouped a portion of their losses that followed the biggest single-day decline since October. Equity markets have traded skittishly in recent weeks amid mounting concern of a stock bubble.
CITADEL SHOOTS DOWN ROBINHOOD LINK
Looking at stocks, GameStop Corp. shares more than doubled early Friday after the trading app Robinhood eased some restrictions on trading a day after preventing customers from entering buy orders. Other stocks that were also subject to the measures, including AMC Entertainment Holdings, BlackBerry Ltd. and Bed Bath & Beyond Inc. were also seeing big moves to the upside.
Elsewhere, Johnson & Johnson said a large trial found its COVID-19 vaccine was 72% effective in the U.S. and 66% effective overall.
In earnings, a trio of Dow members released their quarterly results on Friday morning.
Chevron Corp. reported its first annual loss in four years as the COVID-19 pandemic curtailed travel, resulting in a sharp drop in demand for oil and gas.
Caterpillar Inc. reported quarterly earnings fell 29% from a year ago, but outpaced estimates, as demand for its equipment was hurt by the lingering economic slowdown caused by the pandemic.
Honeywell International Inc. posted quarterly profit and sales that topped expectations as all business segments were stronger than anticipated. The technology and manufacturing company issued an inline forecast for fiscal year 2021.
Meanwhile, Eli Lily Co. said quarterly profit rose 42% year over year, bolstered by demand for its cancer and diabetes drugs. The company said sales of its COVID-19 therapy also provided a lift.
In commodities, West Texas Intermediate crude oil climbed 89 cents to $53.23 per barrel and gold jumped $37.10 to $1,875 an ounce.
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European markets were trading lower across the board with Germany’s DAX 30 down 1.1%, France’s CAC 40 sliding 1.31% and Britain’s FTSE 100 declining 1.46%.
In Asia, China’s Shanghai Composite index lost 0.63%, Hong Kong’s Hang Seng index fell 0.94% and Japan’s Nikkei 225 sank 1.89%.
