Thursday, January 28 - Latest Situation in the Markets

What is the latest situation on the markets on Thursday, January 28? What developments do the markets point to?

The conflict between Wall Street hedge funds and retail investors continues. The US's first GDP reading for the fourth quarter and weekly unemployment claims will be announced. Despite the strong results, Apple, Tesla, and Facebook shares seem problematic, and it is noted that there is a tight physical market resisting the sale in stocks.

1. Great Stock Market Rebellion

It is stated that there will be another wild day for the Great Stock Market Rebellion of 2021. Monday and Tuesday recorded one of the biggest gross drops seen by hedge funds, according to Morgan Stanley (NYSE:MS). The reason for this is the defeat inflicted on hedge funds and other professionals by the army of retail merchants organized on social media. There is no prediction as to how long this will take.

2. GDP and Unemployment Applications Will Be Announced

The US will announce its fourth quarter gross domestic product (GDP) pre-reading. According to analysts, the economy may have grown 4 percent annually after falling 33 percent in the third quarter. FED's inflation measurement core personal consumption expenditures are expected to increase by 1.5 percent on an annual basis. In addition, data on the labor market will be released. Initial unemployment claims are estimated to be as high as 875,000 last week. New housing sales for December will also be announced.

3. Stock Markets Will Have a Mixed Start

It is stated that the stock markets in the USA will open in a mixed course on Tuesday after the hardest one-day drop in weeks. Dow Jones rose 10 points, while the S&P 500 fell 0.2 percent and the Nasdaq fell 0.8 percent. The earnings list is Mastercard (NYSE: MA), Visa (NYSE: V), Comcast (NASDAQ: CMCSA), McDonald's (NYSE: MCD), Altria (NYSE: MO), Dow (NYSE: DOW), Stanley Black & Decker ( NYSE: SWK) and American (NASDAQ: AAL), JetBlue (NASDAQ: JBLU) and Southwest (NYSE: LUV) airlines.

4. Tesla and Apple Shatter High Expectations

Electric vehicle manufacturer Tesla recorded its first full year with profits, while Apple earned $ 100 billion for the first time in the quarter. However, despite this, both companies failed the extremely high expectations seen in current stock prices. Tesla (NASDAQ: TSLA) dropped 4.9 percent with only 50 percent growth forecast for the next two years, while Apple (NASDAQ: AAPL) lost 2.3 percent despite raising the iPhone's average selling price from $ 803 to $ 879. Facebook (NASDAQ: FB), the other company expected to report on Wednesday, lost 0.5 percent as a result of warnings of legal difficulty to Apple's dominance in the online advertising market, along with criticism of Mark Zuckerberg.

5. There Is Not Much Risk in Oil

Selling pressure in the stock market had little to do with crude oil prices, backed by a robust drop in global supply with the Energy Information Agency's (EIA) announcement of a decline in US stocks. West Texas type (WTI) crude oil fell 0.2 percent to $ 52.77 a barrel, while Brent oil traded at $ 55.41.     Source: Investing.com