Gamestop share continues to collapse: Corona aid gives Wall Street a boost

Thursday, February 04, 2021

Gamestop share continues to collapse
Corona aid gives Wall Street a boost

The US stock exchanges continue to rise – in New York the most important indices are gaining momentum. The prospect of massive corona aid from the state prepares a good mood. Figures from the US labor market also provide confidence. The recently massively pushed Gamestop share suffers heavy losses.

Wall Street remains on the road to recovery. The leading US index Dow Jones gained 1.1 percent to 31,055 points. The technology-heavy one Nasdaq advanced 1.2 percent to 13,777 points and the broad one S&P 500 gained 1.1 percent to 3871 points. "The market is processing company balance sheets and focusing on what the government stimulus deal will look like," said Robert Pavlik, chief investment strategist at asset manager Slatestone.

In order to get the necessary approval of the Republicans in Congress, US President Joe Biden offers to narrow the reference group for checks in the amount of 1,400 dollars each. However, he does not allow himself to be talked about when it comes to the amount of the payout. Biden's parallel efforts, the additional ones, are another mood enhancer Corona state aid to bring it through Congress without the approval of opposition Republicans, said Neil Wilson, chief analyst at online broker Markets.com. "Biden wants to act quickly and not spend his first 100 days in office horse-trading with the Republican Party."

Investors also encouraged that the number of Initial jobless claims in the USA fell unexpectedly significantly. A surprisingly strong increase in orders received by US industry also gave the stock market an additional boost. Against this background, the dollar index, which reflects the exchange rate to major currencies, temporarily rose to a two-month high of 91.583 points.

In return it became cheaper gold 2.2 percent to $ 1,793 a troy ounce (31.1 grams). An appreciation of the world's reserve currency makes the precious metal less attractive for investors outside the USA. The price for the USWTI crude oil rose by 0.7 percent to 56.36 dollars a barrel (159 liters). The prospect of a breath of fresh air for the global economy and the holding of Opec + on the subsidy brake are driving the courses, said stockbrokers. Because this means that there is a prospect that the high global stocks will be reduced in the coming months.

Ebay and Paypal with full surcharges

Among the favorites in the US stock market were Ebay and Paypal. The paper of the online merchant closed 5.4 percent firmer at 61.15 dollars, those of the payment service provider rose seven percent to 269.62 dollars. The boom in online trading during the pandemic resulted in surprisingly high growth for both companies. The business forecasts were also pleasantly surprised, commented analyst Trevor Williams of the investment bank Jefferies.

The papers of Canada Goose recorded an increase of almost 22 percent. Thanks to booming online sales, the luxury parka supplier's quarterly sales grew by a good 39 percent. Meanwhile, the titles took off Gamestop istopped falling again and fell by 42 percent. The volatile course of the US video game retailer and other stocks have called the regulatory authorities on the scene. The new US Treasury Secretary Janet Yellen does not want to draw any conclusions from the case for the time being. Before that, she wanted to "understand exactly" how the rally, which at times exceeded 2000 percent, at Gamestop could come about.