This is the web version of the Bull Sheet, The Washington City Times’s daily no-BS newsletter in the markets. Sign up here to receive it in your inbox.
Happy Friday, Bull Sheeters. It’s a risk day as investors try to extend the week’s rally. Broad gains in technology, automobiles and pharmaceuticals are pushing global equities closer to historic highs. US stocks hit that milestone yesterday.
Today’s calendar features a large salary report. Elsewhere, investors are paying close attention to the pace of vaccinations and rewarding those countries that emerge as the first leaders.
Let’s see what investors are putting their money into.
- The major Asia indexes are usually higher, with Japan’s Nikkei up 1.5%.
- Her IPO day for TikTok rival Kuaishou, and investors have every reason to post party video clips on the platform. The stock rose 200% at the open in Hong Kong.
- Nickel-rich Indonesia Tesla has been asking for some time to invest in the land. According to The Washington City Times, the EV maker is finally listening, a development of particular interest to those following the race to find a cheaper, more abundant raw material for electric batteries.
- The European stock exchanges were humble from the gates. The Stoxx Europe 600 used to be 0.3% higher at the open.
- Daimler shares closed 2% on Thursday after the German automaker said it will split the company into two parts: the flagship Mercedes-Benz auto division and Freightliner, the creator of major platforms.
- Regulators of Brussels to Beijing still needs to opt out of Nvidia’s Acquisition of $ 40 billion from chip giant Arm. It all adds up to one of the most researched deals in recent memory.
- The American futures point to another strong open. Yesterday, the S&P 500 closed at an all-time high as stimulus talks and slightly improved unemployment claim data excited investors.
- Ford shares are up 1% in pre-market trading after the carmaker said it was a combined $ 29 billion On EV and autonomous vehicles until 2025. Unfortunately, a shortage of chips has confused the outlook for 2021.
- In “Close the Barn Door” news: Now GameStop has bombed over 80% this week, and AMC Entertainment is more than shut down 50%, Robin Hood has lifted all restrictions and restrictions on trading in the shares. Get them, day traders!
- gold has had a terrible week. It is acting Below $ 1,800, down 2.7% in the past seven days.
- The dollar is flat, but it’s had a heckuva week.
- Rough is higher, with Brent trade just below $ 60 / barrel.
- Bitcoin is down 1.2% at 10am Rome time, trading around $ 37,750.
By the numbers
All eyes are on today’s jobs report for the bell. Economists estimate that the US economy has been added to it 100,000 jobs in January. A reminder: December’s report was cruel with 140,000 jobs lost in the month. Why is this report such an important bell? Because, as USB chief economist Paul Donovan points out, the US job market appears to be stalling. That’s confusing and frustrating given the amount of helicopter money Washington has been dumping into the economy in recent quarters. So here’s what to look for in today’s report: “Structural problems will affect unemployment,” Donovan begins. ‘The negative is that long-term unemployment in dying industries is on the rise. On the positive side, employment figures may underestimate the boom in business start-ups… Quarantine can prevent workers from working. There is a labor shortage in some sectors. This is likely to be reflected in overtime and earnings data. In other words, don’t get distracted by the overall unemployment rate. The bigger story is in scouring the data to see which industries are growing and which are not.
$ 24 billion
Is the GameStop Rally Really Over? The diehards on WallStreetBets would tell you, No way! They continue to advise their peers to stay on a leash. But enthusiasm fades. The stock collapsed 42% yesterday, so the market capitalization is below $ 4 billion. A week ago, when the stock was trading above $ 400, it was the most valuable stock on the Russell 3000. That trade calmed down quickly, and in a spectacularly damaging way. Investors have wiped out $ 24 billion of its market capitalization in just five trading sessions. I sincerely hope the YOLO traders have learned a lesson from this day trading adventure.
10 million +
Let’s give credit to our friends in the UK. Britain has provided at least one dose of the COVID-19 vaccine to 10 million residents, which are exciting investors. The British pound has soared and investors have plunged into British bonds, while the country is at the forefront of the all-important vaccination leader. Its success begs the question: should you invest in countries that properly vaccinate the population, the ultimate recovery game? Here’s what a successful vaccination campaign looks like: Infections decrease as vaccinations increase. This chart is provided by Berenberg Bank:
Have a great weekend everyone … But first there is more news below.
Bernhard.Warner@The Washington City Times.com
As always, you can write to email@example.com or reply to this email with suggestions and feedback.