5 issues it is best to know earlier than the inventory market opens on February 1st, 2021
Here are the top news, trends, and analysis investors need to get their trading day started:
1. Wall Street will bounce back on the first day of February
Traders work on the trading floor of the New York Stock Exchange.
February trading started where January left off, with stocks volatile as the Dow futures surged from over 200 points overnight to over 200 points on Monday morning. With the start of a new week and month, Wall Street had concerns about the Reddit-sparked retail frenzy surrounding GameStop, while also focusing on Covid’s Washington economic talks.
For January, the Dow fell 2%; the S&P 500 fell 1%; and the Nasdaq was up 1.4%. All three benchmarks recorded losses of around 2% on the last trading day in January.
2. Biden to meet with GOP senators over Covid stimulus
President Joe Biden speaks in the Oval Office of the White House in Washington, DC on January 29, 2021.
Nicholas Comb | AFP | Getty Images
President Joe Biden will meet 10 Republican senators on Monday who have proposed spending about a third of the $ 1.9 trillion the White House needs on coronavirus aid. However, the democratically controlled House and Senate are on the right track to vote this week on a budget resolution that would lay the foundation for the adoption of Biden’s stimulus package under rules that only require a simple majority in the narrowly divided Senate.
3. GameStop volatile Monday after last week’s surge
A woman walks past a closed GameStop store in Stephen’s Green Shopping Center in Dublin.
Artur Widak | NurPhoto | Getty Images
GameStop shares, which were boosted 400% last week by private investors on the Reddit WallStreetBets forum, barely changed on Monday’s pre-market after previously identifying strengths and weaknesses. Since the start of the year, the stationary video game retailer’s stock has risen more than 1,600% and more than 8,100% in the past 12 months.
Robinhood and other trading apps continue to restrict the purchase of GameStop stocks and options contracts, as well as other heavily shortened names.
4. The Reddit retail craze seems to be turning into silver
A stack of silver bars & bullion
TooTH_PIK | iStock | Getty Images
5. Elon Musk talks about Robinhood, Bitcoin in the clubhouse
SpaceX owner and Tesla CEO Elon Musk poses when he arrives on the red carpet for the Axel Springer Awards in Berlin on December 1, 2020.
Britta Pedersen | AFP | Getty Images
Elon Musk, CEO of Tesla, brought up Robinhood boss Vlad Tenev in a far-reaching appearance late on Sunday at the Clubhouse, the popular social media audio app, and explained to Tenev why the commission-free trading platform had decided to trade with GameStop to restrict. “We had no choice in this case,” said Tenev. “We had to meet our regulatory capital requirements.”
During Sunday’s clubhouse session, Musk, who also runs SpaceX, confirmed that he supports Bitcoin after adding #bitcoin to his Twitter profile on Friday. Bitcoin gained 3% in the pre-market.
Clubhouse, which is “pre-launch” for millions of users, is working to open its platform to everyone, Paul Davison co-founder and CEO told CNBC on Monday.
– The Associated Press contributed to this report. Follow all developments on Wall Street in real time with CNBC Pro’s live market blog. Find out about the latest pandemics on our coronavirus blog.