Copper is soaring again, gaining 2.1% even as overnight data from China was mixed. Industrial production beat expectations (6.7% vs street 5.5%), but retail sales disappointed (2.3% vs street 3.8%), and house price declines worsened (-3.1% vs previous -2.2%). Crude oil is up 0.1%. With commodity inflation pressures still building, Gold and Silver are up 0.3% and 0.5% respectively this morning. Cryptocurrencies are also having a good day so far with Bitcoin up 1.7% and Ether up 3.3%.
This week we have seen a demonstration of how increased demand for some stocks can drive an increase in supply. Earlier this week, meme stocks like GameStop and AMC Entertainment spiked upward for a couple of days and then drifted back downward. AMC immediately used the situation to raise $250 million in new equity to pay down debt. Last night Gamestop announced plans to sell shares to raise capital and also posted sales guidance of $872-$892 for the current quarter, a significant slowdown from the $1.23B it generated in the same quarter last year. Gamestop is down 24.8% in premarket trading, adding to yesterday’s 30.0% loss.
Friday trading finds US index futures flat with Dow Futures near 40,000 and S&P futures just above 5,300. Major European indices like the Dax, CAC and FTSE are down 0.3%-0.5%. The US 10-year treasury note yield has crept back up toward 4.4%, while the German 10-year Bund yield is back up to 2.50%. There are three Fed officials speaking today with five more on Monday giving investors a chance to see if the party line on higher for longer interest rates has changed at all.
Copper is soaring again, gaining 2.1% even as overnight data from China was mixed. Industrial production beat expectations (6.7% vs street 5.5%), but retail sales disappointed (2.3% vs street 3.8%), and house price declines worsened (-3.1% vs previous -2.2%). Crude oil is up 0.1%. With commodity inflation pressures still building, Gold and Silver are up 0.3% and 0.5% respectively this morning. Cryptocurrencies are also having a good day so far with Bitcoin up 1.7% and Ether up 3.3%.
This week we have seen a demonstration of how increased demand for some stocks can drive an increase in supply. Earlier this week, meme stocks like GameStop and AMC Entertainment spiked upward for a couple of days and then drifted back downward. AMC immediately used the situation to raise $250 million in new equity to pay down debt. Last night Gamestop announced plans to sell shares to raise capital and also posted sales guidance of $872-$892 for the current quarter, a significant slowdown from the $1.23B it generated in the same quarter last year. Gamestop is down 24.8% in premarket trading, adding to yesterday’s 30.0% loss.