GameStop stock took a hit on Thursday as several brokers, led by the likes of Robinhood restricted trading of the equity on their platforms.
The move comes after an army of retail traders flooded the market, raising the company’s share price by as much as 500%, this week alone. Thursday’s volatility was extreme with an intraday range of $112.25 – $483.00.
Robinhood and some other brokers responded to this volatility by only allowing traders to close existing positions as opposed to taking new ones.
This has led many to take to social media where #Freemarket and #DeleteRobinhood are trending in protest of the restrictions.
The company announced that “We continuously monitor the markets and make changes where necessary. In light of recent volatility, we are restricting transactions for certain securities to position closing only, including $AAL, $AMC, $BB, $BBBY, $CTRM, $EXPR, $GME, $KOSS, $NAKD, $NOK, $SNDL, $TR and $TRVG. We also raised margin requirements for certain securities”.
As of writing, $GME was down 35% on yesterday’s close as it was announced that the U.S. Senate would hold a hearing on trading in so-called “Meme Stocks” amid the GameStop stock frenzy.
S&P 500 rebounds as Jobless Claims fall
The S&P 500 and other major U.S. indices rallied on Thursday, as data released showed that weekly jobless claims had fallen.
Figures revealed that the number of Americans seeking unemployment benefits had fallen to 847,000 for last week, which is better than the 875,000 expected.
Thursday’s rally also comes as Speaker of the House Nancy Pelosi moved to begin a process that would allow Democrats to approve a coronavirus relief bill without Republican votes.
Pelosi stated the move was merely in event that Joe Biden’s $1.9 trillion rescue package is not approved by Republicans.
Both the S&P 500 and Dow Jones were up as much as 1.8% as of writing.
Earnings Season: Tesla, Apple and Facebook report earnings
Tesla, Apple and Facebook all released their Q4 earnings figures last night, receiving contrasting fortunes in the process.
Tesla, which recorded its first ever year of profits, was down close to 2.25% on Thursday as it reported earnings of 80 cents per share vs estimates of $1.03 per share.
Apple on the other hand recorded its first ever $100 billion quarter, with earnings of $1.68 per share on $111.4 billion in revenue. Despite achieving this milestone Apple’s shares were down 1.86% to $139.42 in afternoon trading.
Meanwhile Facebook saw earnings of $3.88 per share vs the expected $3.22 per share, with revenue beating estimates at $28.07 billion vs forecasts of $26.44 billion. Afternoon trading saw the Company fall 1.75% to $267.37 per share.
Despite the declines in these tech bellwethers the NASDAQ was up 1.35% as of writing.
Quote of the day – “Stocks are bought not in fear but in hope. They are typically sold out of fear.”Justin Mamis
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