During Market hours Yesterday — (Thursday – 08.07.2021):
- The Dow (Symbol: DIA) dropped 0.73%. The S&P 500 (Symbol: SPY) went down 0.81% and the Nasdaq (Symbol: QQQ) slid 0.6%.
- Charles Schwab (Symbol: SCHW)— Shares of the online broker dipped 3.04% after Goldman Sachs downgraded the stock to neutral from buy. The Wall Street firm said investors should back away from the brokerage after a surge in customer trading activity helped to push the stock close to its fair value.
- Didi Global (Symbol: DIDI)— The Chinese ride hailing company’s shares slid 5.88% on Thursday as it undergoes a security review from regulators in its home country. The Chinese government has blocked downloads of the company’s app, stifling further growth. The stock is now down nearly 28% for the week.
- Railroad stocks — The share prices of major railroads took a hit on Thursday after the Wall Street Journal reported that the Biden administration is targeting consolidation among railroads and ocean shipping companies. Kansas City Southern (Symbol: KSU) is trading 7.87% lower, while Norfolk Southern (Symbol: NSC) shares fell 7.16%. CSX (Symbol: CSX) is down 6.16% and Union Pacific (Symbol: UNP) is down 4.38%.
- Banks — Banks are under pressure Thursday amid growing concern about the pace of the economic recovery. Financial institutions like banks are typically viewed as cyclical stocks whose performance is tied to the path of the economy. JPMorgan Chase (Symbol: JPM) fell 1.7%, and Bank of America (Symbol: BAC) dropped 2.44%. Wells Fargo (Symbol: WFC) is down 2.5%, and Citigroup (Symbol: C) shares tumbled 1.77%.
- Coinbase (Symbol: COIN)— Coinbase shares fell 3.05% Thursday in tandem with the price of bitcoin, which tumbled about 6% to approximately $32,000. Coinbase’s business is closely tied to the price of bitcoin and ether, though that may change in the future as it expands.
- The RealReal (Symbol: REAL)— Shares of The RealReal added 5.36% after Needham initiated coverage of the authenticated luxury consignment stock with a buy rating. The firm said it sees “upside earnings revisions” for the retailer. Needham also noted “there is pent-up demand, as evidenced by spending on apparel and accessories climbing almost 70% YTD through May.”
- Advanced Micro Devices (Symbol: AMD), Nvidia (Symbol: NVDA)— Chip stocks are in the red, amid concern about global growth. The declines came despite Oppenheimer raising its price target on Nvidia and Goldman Sachs raising its price target on Advanced Micro Devices Thursday morning. Advanced Micro Devices is down 0.88% and Nvidia is down 2.3%.
During Premarket hours today – (Thursday – 09.07.2021):
- Levi Strauss (Symbol: LEVI) — The denim maker added about 3% after reporting quarterly earnings Thursday night that crushed Wall Street expectations. Levi reported adjusted earnings of 23 cents per share, on revenue of $1.28 billion. That beat analyst expectations of 9 cents per share on revenue of $1.21 billion, according to Refinitiv.
- General Motors (Symbol: GM) — The automaker’s stock rose more than 3% in premarket trading, after Wedbush rated it as an outperform and said its stock could jump more than 50%. As the company proves out its vision for electric vehicles in the coming years “the stock will be re-rated more as a disruptive technology and EV play, rather than its traditional auto valuation,” the Wedbush analyst said.
- Bank of America (Symbol: BAC), Citigroup (Symbol: C), JPMorgan(Symbol: JPM), Wells Fargo (Symbol: WFC)— Bank stocks traded higher as bond yields bounced back up Friday morning, easing concerns about a global economic slowdown that were heightened when yields fell Thursday. Bank of America and Citigroup shares are higher by about 1.6%. JPMorgan and Wells Fargo are trading about 1% higher. The sector’s profitability is closely linked to the level of rates and generally increases as long-term rates rise.
- Delta (Symbol: DAL), United (Symbol: UAL), American (Symbol: AAL) Airlines — Airline stocks are moving higher after dipping on Thursday amid concern about the global economic recovery from the pandemic. American Airlines is trading almost 2% higher, and Delta and United shares rose 1.2%.
- Norwegian Cruise Line (Symbol: NCLH), Carnival (Symbol: CCL) — Cruise lines are also bouncing back after sliding Thursday in response to concerns about the economy slowing down. Norwegian Cruise added 2.2% in premarket trading and Carnival rose 2.5%.
- Didi Global (Symbol: DIDI), Tencent Music Entertainment (Symbol: TME), Pinduoduo (Symbol: PDD), Baidu (Symbol: BIDU), Alibaba (Symbol: BABA) — The U.S. traded shares of several Chinese companies bounced after their big declines earlier in the week, set off by the Chinese government’s crackdown on stocks that trade on U.S. exchanges. Didi shares rose 3.4% in premarket trading and Tencent Music is up 2.4%, while ecommerce platform Pinduoduo has gained more than 3% and search giant Baidu gained 2.3%. Tech giant Alibaba is also up 1.5%.
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