Stocks are mostly higher Monday, especially the Dow which is up over 600 points, but tech stocks fell as Treasury bond yields rise.
TheStreet's Katherine Ross and Jeff Marks discussed breaking news in the stock market. Marks spoke about GameStop's surge, the tech selloff in the Nasdaq, and rising oil prices.
GameStop: Buy Or Sell?
Shares of GameStop (GME) - Get Report have spiked over 50% Monday during trading after Bloomberg reported that the videogame retailer would ask Chewy.com (CHWY) - Get Report Founder Ryan Cohen to lead its e-commerce strategy.
Cohen will lead the group's shift towards e-commerce and online sales, a move that follows the announcement last month that Chief Financial Officer Jim Bell would step down.
Marks said the news today supports the believers and enthusiasts in GameStop and what they wanted which is Cohen changing up the company's e-commerce business. "We still need to learn more about what Cohen's initiatives are to fully cement this thesis."
Tech Selloff
Marks said it is all about discounted cash flow analysis. "As interest rates go up, you're discounting future cash flows out at a higher interest rate which brings down the net present value of that cash flow. And that's what is hurting tech companies and basically any other hyper-growth company. But a lot of analysts have stuck their neck out today and said look at these pullbacks as a buying opportunity."
Oil Prices
Brent crude, the global benchmark, traded above $70 a barrel for the first time since January 2020 after Saudi Arabia said its oil infrastructure came under missile and drone attack from Iran-backed Houthi rebels.
Marks said this is going to help a lot of oil producers, cyclical stocks and industrials with their cash flow and profits. "Higher oil can also be a headwind to things, especially retailers because consumers will have less money in their discretionary budgets when they are spending more dollars to fill up their tanks. That's important to keep in mind as well."
None of these are key holdings in Jim Cramer's Action Alerts PLUS charitable trust. Want to be alerted before Jim Cramer buys or sells any stock? Learn more from Cramer and his membership team now.
"stock" - Google News
March 09, 2021 at 02:53AM
https://ift.tt/3cfjKe6
Stock Market Today: GameStop, Oil and the Tech Selloff - TheStreet
"stock" - Google News
https://ift.tt/37YwtPr
https://ift.tt/3b37xGF
Bagikan Berita Ini
0 Response to "Stock Market Today: GameStop, Oil and the Tech Selloff - TheStreet"
Post a Comment