5 issues it is best to know earlier than the inventory market opens on January 29, 2021
Here are the top news, trends, and analysis investors need to get their trading day started:
1. Dow futures fell as Wall Street’s volatile week continues
American flags hang on the facade of the New York Stock Exchange (NYSE) building in New York on January 28, 2021.
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2. J&J says the vaccine is less effective against some variants of Covid
Illustration of the Johnson & Johnson coronavirus vaccine
Given Ruvic | Reuters
J & J’s highly anticipated vaccine results were based on 468 confirmed Covid cases among the more than 43,000 volunteers in the Phase 3 study, including those infected with the new, highly contagious strain in South Africa. J&J also said the vaccine was 85% effective in preventing serious illness in all adults four weeks after vaccination. If the J&J vaccine is approved by the FDA, it will be the third emergency approved in the US after Pfizer BioNTech and Moderna’s. Both require two doses.
US-based biotech company Novavax said late Thursday that its vaccine was more than 89% effective against the coronavirus. In its Phase 3 clinical trial conducted in the UK, the two-shot vaccine appeared to be 85.6% effective against the new strain originally found in that country. In a phase 2 study in South Africa, however, the Novavax was only 49.4% effective compared to the new variant found there. Novavax’s shares were up nearly 60% on the Friday before going public.
3. Robinhood raises $ 1 billion and uses lines of credit to facilitate GameStop trading
An epic battle takes place on Wall Street in which a number of characters argue over the fate of GameStop, a struggling chain of video game retail stores. The conflict has put GameStop on an upset stomach, with amateur investors taking over the financial institution in the mindset of the Occupy Wall Street movement that began a decade ago.
Olivier Douliery | AFP | Getty Images
Robinhood raised $ 1 billion from investors overnight to prop up its balance sheet as the brokerage app eased restrictions on trading certain volatile stocks, according to CNBC’s Andrew Ross Sorkin. The money raised was on top of the $ 500 million that the broker had accessed through lines of credit to ensure it had the capital it needed to keep its clients trading stocks like GameStop and AMC Entertainment. Robinhood CEO Vlad Tenev told CNBC that using the credit lines was a proactive move and denied it due to a liquidity problem. After tripping the day before, GameStop and AMC stocks rose 90% and 60% respectively in the premarket on Friday.
4. Elon Musk’s tweets about cryptocurrencies trigger rallies
Elon Musk, CEO of Tesla, will be on the construction site of the Tesla Gigafactory in Grünheide near Berlin on September 3, 2020.
Patrick Pleul | Image Alliance | Getty Images
Robinhood restricted cryptocurrency trading on Friday when the price of bitcoin and a meme-inspired token spiked after Elon Musk tweets.
Bitcoin surged up to 20% to around $ 38,100 early Friday after Musk added #bitcoin to his Twitter bio. The Tesla CEO also sent out a cryptic tweet: “In retrospect, this was inevitable.” The world’s most valuable cryptocurrency hit an all-time high of $ 41,940 earlier this month, before falling sharply a week later.
Dogecoin, originally founded as a joke about a dog meme, rose 800% Thursday after a Reddit board talked about making it the cryptocurrency equivalent of GameStop. Musk tweeted a picture of a track from “Dogue” that plays on the popular fashion track “Vogue” Thursday night.
5. Democrats reject GOP attempts to break the Biden bailout
U.S. President Joe Biden signs Executive Orders to improve access to affordable health care at the White House in Washington on January 28, 2021.
Kevin Lamarque | Reuters
Democrats on Capitol Hill and the White House turned down a Republican pitch to break President Joe Biden’s coronavirus bailout plan into smaller pieces. Democrats seemed ready to push through the measure without GOP help. The success would bring Biden a stellar accomplishment in his first 100 days in office, raising money to expand vaccinations and reopening schools, paying $ 1,400 direct payments to households, and other priorities including a gradual increase in the federal minimum wage 15 USD per hour, released. Failure to begin his presidency would be a major setback.
– 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.