GameStop’s Wall Street Following Has Dwindled Amid Reddit Frenzy
Katrina Lewis – Bloomberg
GameStop Corp. is heading into its first-quarter earnings report with half the number of analysts covering the stock than before retail traders helped fuel a quadruple-digit surge in shares.
The video-game retailer is currently covered by four analysts tracked by Bloomberg, down from nine analysts at the beginning of the year. As of Wednesday, GameStop has two hold and two sell ratings, according to data compiled by Bloomberg.
GameStop’s New Chairman Tells Shareholders to ‘Buckle Up’
Connor Smith – Barron’s
GameStop answered one of the key questions that have been puzzling investors, naming a new chief executive and finance chief as it disclosed its results for the fiscal first quarter on Wednesday.
Matt Furlong, who oversaw Amazon.com’s Australia business, starts as CEO on June 21. Mike Recupero, who was most recently Amazon’s chief financial officer for the North American Consumer business, starts as CFO on July 12.
GameStop has had a wild ride in 2021, but the stock is still up 1,600% heading into its latest quarterly financial report
Carla Mozée – Markets Insider
Investors committing money toward seeing GameStop shares advance have helped propel them up by more than 1,600% so far this year, keeping the rally going despite massive volatility in 2021.
GameStop will release its quarterly report after regular-session trading closes Wednesday. It headed into the report with a new chairman as Ryan Cohen, its largest individual shareholder and co-founder of Chewy.com, was elected to the post by shareholders earlier in the day.
Meme stocks stumble after GameStop discloses SEC probe into the frenzy
Thornton McEnery – MarketWatch
Looks like Gary Gensler might be doing more than just watching meme stocks.
GameStop Corp. disclosed late Wednesday that the U.S. Securities and Exchange Commission has asked for its cooperation with an investigation into the unprecedented volatility its stock has seen in recent months. The company also suggested it’s not the only one being probed.
Here’s what sparked the latest talk over $100 oil prices
Myra P. Saefong – MarketWatch
A rise in oil prices to $100 a barrel isn’t likely anytime soon, analysts say, but traders still are placing bets on a price spike that tallies as much as 30% by the end of 2022.
There is a belief that demand will outstrip supply in 2022, with limited production increases among U.S. producers, as well as limited investment in longer-term oil plays, spurring projections for triple-digit prices, says Regina Mayor, global energy leader at KPMG.
AMC July 30th Options Begin Trading
Investors in AMC Entertainment Holdings Inc. (Symbol: AMC) saw new options begin trading today, for the July 30th expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the AMC options chain for the new July 30th contracts and identified one put and one call contract of particular interest.
Record profits for CMC Markets after online trading surges
Daniel Thomas – Financial Times
CMC Markets posted record profits after a surge in spread betting and online trading in stocks as many people were stuck at home during a year of market volatility.
The FTSE 250 company said net operating income more than doubled to GBP410m for the year to March, up from GBP158m in the previous year. Pre-tax profit rose to GBP224m, from GBP99m, while it announced a final dividend of 21.4p a share.
Regulation & Enforcement
SEC to Review Market Structure as Meme Stocks Stir Frenzy
Dave Michaels and Alexander Osipovich – WSJ
The Securities and Exchange Commission is considering changes to some of the stock market’s most fundamental rules in light of the surge in trading over the past year by individual investors in meme stocks such as AMC Entertainment Holdings Inc. and GameStop Corp.
Speaking to an industry conference Wednesday, SEC Chairman Gary Gensler outlined a broad examination of market structure, including the role high-speed traders play in executing many small investors’ orders and the rise of online brokers, whose technology can entice people to do more trading.
DASH Expands Product Suite with the Launch of Risk, Allocation Tools; With DASH360 Risk and DASH360 Allocations, industry-leading technology provider further supports trading firms throughout the full trade lifecycle
DASH Financial Technologies
DASH Financial Technologies (“DASH”), the leading U.S. options technology and execution provider, today announced the launch of DASH360 Risk and DASH360 Allocations. The highly customizable new products – which allow traders to dynamically manage their 15c3-5 market access requirements and post-trade option and equity trade allocations, respectively – are the latest additions to the award-winning DASH360 suite of analytics, reporting and risk tools.
Investors Can Still Extract Income from the Nasdaq-100
Tom Lydon – Nasdaq Investment Intelligence Channel
Although 10-year Treasury yields have steadied a bit in recent weeks, the prior rise by those yields has hindered technology stocks.
The tech-heavy Nasdaq-100 Index (NDX) is in the green on a year-to-date basis – an impressive feat when considering tech was the sector most inversely correlated to 10-year yields in the first quarter.
In more upbeat news, investors can still extract healthy levels of income from the Nasdaq-100 via the Global X Nasdaq 100 Covered Call ETF (QYLD). The $3 billion QYLD, which turns eight years old in December, tracks the CBOE Nasdaq-100 BuyWrite V2 Index.
Electricity derivatives will offer power offtake certainty for renewable investors
PV Magazine – India
An Institute for Energy Economics and Financial Analysis (IEEFA) report says the sale of power in the futures market will benefit renewable energy developers and distribution companies alike.
The introduction of derivatives to India’s short-term power market will make it easier for renewable project developers to enter into offtake arrangements with the state-owned distribution companies (discoms), according to a new briefing note from the Institute for Energy Economics and Financial Analysis (IEEFA).
PBOC mulls more support for small companies
The People’s Bank of China, the central bank, will strive to ensure continued financial support for small businesses with low interest rates under the reformed benchmark system.
In its regional financial operation report released on Tuesday, the PBOC said it would continue to strengthen credit support for small and micro enterprises, including increasing unsecured loans. The access threshold for getting risk compensation funds will be moderately lowered for the fresh and unsecured loans of small and micro enterprises. The measure helps increase bank lending via financing guarantees from the government, the report said.
…The PBOC also said that it will explore derivatives, including LPR swaps and options, which can provide risk-hedging measures for commercial banks.