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Stocks open lower on Friday
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GameStop and AMD surge again
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Caterpillar released fourth-quarter results
Wall Street opened in negative territory on the final trading day of the week. Following some wild moves and short-selling frenzy in the past several days, US indices are now on track for worst week since October. According to CNBC, Robinhood raised $1 billion overnight from investors to shore up its balance sheet. As a result, the brokerage app is set to ease restrictions in the trading of certain volatile stocks. Nevertheless, the firm restricted crypto trading “due to extraordinary market conditions”. Meanwhile, GameStop and AMC Entertainment continue their rally, in both cases price rose roughly 50%.
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Open real account TRY DEMO Download mobile app Download mobile appHaving a look at a daily time-frame, US500 has tested the 50-day moving average in recent days. Investors witnessed similar situation in early-summer and the index managed to rebound back then. Nevertheless, US500 did fall below that threshold twice in the fall. Should a current pullback continue, investors’s attention might shift towards an upward trendline. Source: xStation5
Company News
AMC Entertainment (AMC.US) will look to raise more capital through yet another possible stock sale, reported CNBC citing people familiar with the matter. AMC reportedly seeks to take advantage of this week’s rally, which was fueled by Reddit. The company’s 1000-plus global movie theaters were strongly hit by the pandemic.
General Motos (GM.US) plans to achieve carbon neutrality by 2040. American car maker is set to phase out gasoline and diesel cars by 2035. The company announced that it would offer 30 all-electric models by mid-decade. "General Motors is joining governments and companies around the globe working to establish a safer, greener and better world," said Chairman and CEO Mary Barra.
Caterpillar (CAT.US) topped Q4 earnings forecasts. Sales amounted to $11.24 billion, above Wall Street projections of $11.18 billion. Adjusted profits came in at $2.12 per share, down 20% from the same period last year, but significantly above analysts’ expectations of $1.49 per share.
Caterpillar (CAT.US) gains amid better-than-expected Q4 results and tries to resume an upward move. However, should sellers regain control, key support may be found at $171. Source: xStation5
