riends
The Robinhood war rages on, and while everyone seems to be focused on GameStop, the general market is definitely starting to show some cracks. Despite a series of very good earnings reports, stocks are selling off on the news as we appear to be confirming that stocks might have been a bit rich heading into 2021. Remember, the move higher from the March 2020 lows was historic, so a period of consolidation or backing and filling might not be a bad thing. All this on a day when we actually got more good news on vaccines from Johnson & Johnson. What can you do?
By the close, the Dow Jones Industrial Average was down 620 points to finish the day at 29,982. The S&P 500 was down 73 points to close at 3,714. The Nasdaq Composite Index was down 266 points to close at 13,070. Gold was up $8 to trade at $1,846 per ounce, while oil was down$.15 to trade at $52.19 per barrel WTI.
Back to the Gamestop and Robinhood situation, there is plenty of information online if you would like to read more about what is going on and the various explanations (it would be lengthy to disseminate here), but it surely appears that it is having a negative effect on the overall market-perhaps because leveraged hedge fund managers are being forced to sell, or simply because investors are growing uneasy with the disruption they are seeing on Wall Street. Whatever the case, it was a bad week for stocks and in the end a negative month to begin the year. Let’s see if this spills over into next week.
Have a great weekend everyone.
