Dow Futures Rise After Strong Sell Wave on Wall Street; GameStop underscores market foam concerns

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Stock futures were mixed on Thursday, fighting for direction a day after heavy losses for major indices linked to concerns about a slowdown in the economic recovery. Investors continued to monitor a rise in GameStop Corp. shares that underscored concerns about speculative glut. Meanwhile, shares of big tech companies were down in pre-market trading after Tuesday night gains from Apple Inc. AAPL, -0.77%, Tesla Inc. TSLA, -2.14% and Facebook Inc. FB, -3.51%. What are the main landmarks doing? Futures on the Dow Jones Industrial Average YM00, + 0.15% were up 49 points, or 0.2%, to 30,238. S&P 500 ES00 futures, -0.01% were little changed, down 0.2 points to 3,744. Nasdaq-100 NQ00 futures, -0.44%, fell 62.75 points, or 0.5%, to 13,042.75. Benchmarks fell sharply on Wednesday, with the Dow DJIA, -2.05% falling 633.87 points, or 2.1%, while the S&P 500 SPX, -2.57% and Nasdaq Composite COMP, -2.61% fell each 2.6%.

What drives the market? Stocks gave up on 2021 earnings as investors worried that the rally in stocks had gone too far as the economy continues to reel from the COVID-19 pandemic. Concerns over speculative foam were underscored by the surge in GameStop shares, which has been the top-traded stock on Wall Street for two days, as part of a battle between an army of individual investors organized on platforms like Reddit and hedge funds. short sale coverage. . Analysts said the weakness in equities also reflected fears that some hedge funds were struggling to exit long positions in an attempt to offset losses on short positions against stocks such as GameStop and AMC Entertainment Holdings Inc. AMC, + 301.21%. GameStop shares rose another 32% in volatile pre-market trading on Thursday. GameStop’s saga of short shrinkage has sparked concerns that certain investment firms are rushing out to get cash to cover the painful losses they are enduring. In the last 24 hours, the mood has changed a lot as there is now a feeling that stocks overall will suffer further losses as some distributors are adopting a cut and run mentality, ”said David Madden, analyst at market. at CMC Markets UK, in a note. Although overshadowed by the GameStop saga, analysts said Wednesday’s remarks by Federal Reserve Chairman Jerome Powell, which underscored that the economy remains a long way from recovery and that some sectors already damaged by the coronavirus pandemic they were experiencing another round of pain they were also a drag on the market. . A first estimate of economic growth for the fourth quarter should be made at 8:30 am ET. Economists surveyed by MarketWatch, on average, expect gross domestic product to show an annualized growth of 4.3%. Weekly data on jobless claims will provide investors with an insight into the state of the job market. First-time claims are expected to drop to 875,000 from 900,000 a week earlier. Business data must also be submitted by 8:30 a.m. M., While the December New Home Sales and December Leading Economic Indicators report are due at 10 a.m. M. What companies are you focused on? Apple shares were lower in premarket trading after reporting its highest total quarterly revenue yet, as the new iPhone 12 propelled the company to its first quarter of $ 100 billion in sales. Tesla shares fell 5% in premarket trading after the electric vehicle maker reported its sixth consecutive quarter of earnings and a hit in sales, but fell short of Wall Street expectations and disappointed investors. investors who expected a clear sales target for the year. Facebook shares were weaker in pre-market trading after the social media giant posted better-than-expected fourth-quarter results, but warned of “significant uncertainty as we handle a series of cross-flows in 2021 “. McDonalds Corp. MCD, shares of -3.89% fell slightly in premarket trading after falling short of Wall Street’s earnings and revenue forecast. Shares of Southwest Airlines Co. LUV, -3.62%, rose slightly in pre-market trade after the airline reported its first annual loss since 1972 and offered grim guidance for the first few months of the year as the pandemic continues. affecting travel activity. American Air Lines Group Inc. AAL, shares of + 6.63% soared after the airline reported a lower-than-expected fourth-quarter loss, and revenue and load factor exceeded expectations.