US Stock Futures Rise After Turbulent Week On Wall Street
The U.S. stock futures may have slipped on early Sunday, but they are now pointing upwards following last week’s heavy losses, the worst since October. Last week, all three major averages fell more than 3%. Several days of profit-taking sent Wall Street lower on Friday. That prompted some to believe that the anticipated long-overdue correction in the stock market has finally arrived. January was a negative month for the Dow and S&P, the first in four months. The Nasdaq however, managed to eke out a gain for the month.
“We were due for some type of decline. We’ve been straight up since October. It’s not unusual that we’re backing off a bit,” said Steve Massocca, managing director at Wedbush Securities.
U.S. stock futures are moving higher along with the Asian and European markets today. While we will have a busy week ahead, the brinkmanship between Wall Street and Reddit investors is likely to stay on the minds of market participants. Investors are also beginning to wonder if the stock market could rebound this week after last week’s heavy losses. The Dow, S&P 500, and Nasdaq 100 futures were all in the positive territory, moving 0.82% and 1.07% and 1.14% respectively at 6:36 a.m. ET.
“We think that the vulnerabilities are there, and while we do not know precisely which catalysts might emerge or their exact timing (including some of the recent retail-oriented pushes against heavily shorted stocks), we suspect that they would derail the current rally and provide entry points that may be 10% lower,” – Tobias Levkovich, Citigroup’s chief U.S. equity strategist.
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Silver Surges As Reddit Army Turns To Commodities
Silver prices are jumping to a five-month high on Monday after calls on social media to purchase the metal. It appears some may be hoping for a repeat of the GameStop (NYSE: GME) rally. Meanwhile, a number of small silver miners listed in Australia also rose. Silver is now a popular topic on Reddit forum r/WallStreetBets. Silver futures were up 8% shortly after the futures market opened. That marked the biggest move in the futures since at least 2013. The contract has since made further gains, last seen up more than 10.2% as of 6:37 a.m. ET.
Cameron Winklevoss, the co-founder of cryptocurrency firm Gemini, said on Twitter that, “The ramifications of a #silversqueeze cannot be underestimated. If it’s exposed that there are more paper claims on silver than actual silver, not only would the payoff be enormous, but gold would be next. #Bitcoin fixes this.”
Robinhood Narrows Restricted List To Eight Stocks
Robinhood has narrowed its stock trade restrictions from 50 to eight companies on Sunday. The current list includes GameStop, AMC Entertainment (NYSE: AMC), BlackBerry (NYSE: BB), Express (NYSE: EXPR), Genius Brands (NASDAQ: GNUS), Koss (NASDAQ: KOSS), Naked Brand Group (NASDAQ: NAKD) and Nokia (NYSE: NOK).
According to the company’s support page, investors will be limited to 10 shares and 10 options contracts of AMC, 700 shares and 700 options contracts of BlackBerry, 20 shares and 20 options contracts of Express Inc., 1 share and 5 options contacts of GameStop, 600 shares and 600 options contracts of Genius Brands International, 2 shares of Koss Corp., 600 shares of Naked Brands Group and 2,000 shares and 1000 options contracts of Nokia Corp.
“It was not because we wanted to stop people from buying these stocks,” Robinhood added in a blog post. “We did this because the required amount we had to deposit with the clearinghouse was so large—with individual volatile securities accounting for hundreds of millions of dollars in deposit requirements—that we had to take steps to limit buying in those volatile securities to ensure we could comfortably meet our requirements.“- Robinhood co-founder Vladimir Tenev
Chinese EV Companies Report January Delivery Numbers
After the earnings miss from Tesla (NASDAQ: TSLA), the next thing on the mind of electric vehicle stock investors may be the delivery numbers from Chinese EV companies. These include none other than NIO (NYSE: NIO), Xpeng (NYSE: XPEV), and Li Auto (NASDAQ: LI). All four EV stocks took a breather last week along with the broader market. If you are looking for reasons to buy these EV stocks, this week’s delivery numbers may be the catalyst to lit up these stocks.
NIO delivered 7,225 vehicles in January 2021, a new monthly record representing a strong 352.1% year-over-year growth. As of January 31, 2021, cumulative deliveries of the ES8, ES6 and EC6 reached 82,866 vehicles. It’s not just Nio that has reported their delivery numbers this morning. Xpeng joined the party as well, releasing strong deliveries for the month of January. This signals an extension of the sales momentum the company has been witnessing in recent months. Xpeng said it delivered 6,015 vehicles in January, a 470% increase from the same period last year.
“The record-breaking delivery results reflect the strong market appeal of XPeng’s products and services as the Company accelerates its delivery capabilities and launch of new smart features, expanding brand awareness and marketing efforts,” Xpeng said in a statement.
Big Tech Earnings Continue
Last week was one busy week for Wall Street. Tech giants Apple (NASDAQ: AAPL), Microsoft (NASDAQ: MSFT), and Facebook (NASDAQ: FB) reported their earnings for the most recent quarter. This week, another round of big tech names are reporting, namely Amazon (NASDAQ: AMZN), Alphabet Inc. (NASDAQ: GOOGL) and Alibaba Group (NYSE: BABA), and Qualcomm (NASDAQ: QCOM). There are also other notable names from other sectors. They include Pfizer (NYSE: PFE), PayPal (NASDAQ: PYPL), ExxonMobil Corp. (NYSE: XOM), and Vertex Pharmaceuticals (NASDAQ: VRTX). So, whether it is the silver futures, another week of retail stocks frenzies, Chinese EV delivery numbers, or corporate earnings, there is a lot to digest as we start the week.