GDP Growth Challenges
By Fri, Jan 29, 2021
Hey Scoopers,
The lower than expected GDP growth dampened the market’s recovery from the previous day’s red zone. — More on that in the “Overall Market” section.
Beyond the overall market, one new IPO surged thanks to ARK Invest, while a robotic stock got tangled in between the short-squeeze drama and patent infringement. — More on that in the “What’s Up?” and “What’s Down?” sections.
Oh, by the way, the short squeeze drama continued for one more day. — More on that in the “Water Cooler” section.
But, first, here is a recap of what happened in the market yesterday:
Market Recap
- U.S. markets: The stock market indices finished the day in the green but much lower than how it started the day. Scroll down to the “Overall Market” section to read more.
- Cryptocurrency: Bitcoin’s price surged to more than $33,000 per coin, but warnings about the future potential have started to pour in again.
America’s #1 Stock Picker Reveals Next 1,000% Winner (free)
He’s found 40 1,000% or higher stock market winners. He beat 650 of the world’s most famous investors (including Bill Ackman and David Einhorn) in a trading contest. And today, he’s revealing the critical top trend to watch and his next potential 1,000% winner for free, right here. No credit card, email address, or subscription required.
Lower Than Expected GDP
TAll three indices started Thursday on an upward trend and gained more than 1%. However, by the end of the day, they’ve lost almost all the gain but still managed to stay above zero for the day.
The U.S. fourth-quarter GDP came in lower than expected, and once again, economic indicators proved that the overall economy is struggling despite the market’s giddiness.
The Ark Effect
So, what happened?
Shares of a new IPO called Hims & Hers Health Inc (Ticker: HIMS) were up more than 27% on Thursday. The company has started from erectile dysfunction medicine delivery. It is now expanding into Telehealth. Perhaps, the foray into telemedicine is why innovation-focused ETF run by ARK invest jumped in to invest in this new IPO on day one.
Former Mechanic Reveals His 3-Click, 6-Figure Trading System
$39,800…$66,500…$158,600…These are the kinds of profits that a former mechanic is making by following a simple, 3-click strategy…A strategy that requires less than 60 minutes a week to execute.
Click right here to view the free training video for more details.
(By clicking you agree to receive email updates and special offers from Market Traders Daily)
Patent Infringement
So what happened?
Shares of iRobot Corp (Ticker: IRBT) were down by more than 24% on Thursday. The company is one of those highly-shorted stocks, and the decline could be due to the drama that is unraveling around short-squeeze stocks. Moreover, the company has been dealing with patent challenges with competitions such as SharkNinja. It filed a new patent infringement lawsuit today, and the legal difficulties just gave investors reason that the company is struggling to compete.
The Short Squeeze Drama Continued
So what happened?
The inevitable happened, brokerage firms halted trading of the so-called short-squeeze stocks, which fell off the cliff first, and then the restrictions are being removed gradually. Some short squeeze stocks have already started recovering from the dip in the after-hours trading. The drama is not over yet, and even politicians are getting involved.
If you have any questions, or suggestions let us know by emailing us at members@tradestocks.com. We look forward to hearing from you.
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
