Latest Updates:
- Stocks Close Monday Out Higher
- Jefferies: 5 Short-Squeeze Stocks to Buy
- 3 SPAC ETFs to Buy for the Red-Hot Trend
- Midday Update: Major Indices Remain in the Green
- Silver Stocks Soar Amid Reddit Debate
Stocks Close Monday Out Higher
[Monday, February 1, 4:10 pm]
Contributed by Sarah Smith
- The S&P 500 closed higher by 1.61%
- The Dow Jones Industrial Average closed higher by 0.76%
- The Nasdaq Composite closed higher by 2.55%
- The Russell 2000 closed higher by 2.63%
Jefferies: 5 Short-Squeeze Stocks to Buy
[Monday, February 1, 4:04 pm]
Contributed by Sarah Smith
It should be no surprise now that short-squeeze stocks like GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC) dominated the market last week. And it should be no surprise that this week, many investors want to get ahead of the curve and find the next opportunities.
Analysts at Jefferies want to help you do just that. Analyzing the potential in short-squeeze stocks, the firm said that another factor to consider is liquidity. As the thinking goes, smaller-capitalization stocks tend to have less liquidity. This category would include names like GameStop, AMC and several other recent high-flying companies. Then, once you find small-cap stocks that have low liquidity, the short-squeeze potential is high. That is because, as Jefferies argues, lower liquidity can amplify the power of a short squeeze.
If you like the way that sounds, keep these five stocks on your radar (subscription required):
- Sleep Number (NASDAQ:SNBR)
- TreeHouse Foods (NYSE:THS)
- Teradata (NYSE:TDC)
- Unisys (NYSE:UIS)
- Hostess Brands (NASDAQ:TWNK)
3 SPAC ETFs to Buy for the Red-Hot Trend
[Monday, February 1, 2:44 pm]
Contributed by Sarah Smith
Are Redditors and day traders moving en masse to the world of blank-check companies? Perhaps.
After riding GameStop (NYSE:GME) and the stocks of other old-school retailers to new heights, some think that special purpose acquisition companies make a lot of sense for the r/WallStreetBets crowd. SPAC stocks are speculative, and offer exposure to high-growth themes like electric vehicles, fintech, telehealth and so much more. While this shift is still in progress, especially as much focus remains on GameStop, it is something for investors to consider.
As interest in these special purpose acquisition companies continues to grow, exchange-traded funds are debuting to keep up. In fact, another SPAC ETF just started trading last week.
For a look at three SPAC ETFs to watch, read the InvestorPlace.com roundup here.
Midday Update: Major Indices Remain in the Green
[Monday, February 1, 1:36 pm]
Contributed by Sarah Smith
- The S&P 500 is up 1.68%
- The Dow Jones Industrial Average is up 0.91%
- The Nasdaq Composite is up 2.56%
- The Russell 2000 is up 1.5%
Silver Stocks Soar Amid Reddit Debate
[Monday, February 1, 1:28 pm]
Contributed by Sarah Smith
Some of the biggest winners on Wall Street today are silver stocks. Allegedly fueled by posters on r/WallStreetBets, a handful of top names like iShares Silver Trust (NYSEARCA:SLV) and First Majestic Silver (NYSE:AG) are thriving. This comes alongside a short squeeze in silver and a rise in retail investors who are looking for the next opportunity to profit.
However, the silver stocks story is not perfect. Some Redditors are actually encouraging their peers not to invest. Why? Some would rather r/WallStreetBets maintain its devout focus on GameStop (NYSE:GME). Others think the focus on silver stocks is a conspiratorial push from hedge funds.
No matter the reason for the rally, silver stocks are gaining. For more, read the InvestorPlace.com brief here.
3 Big Stories to Watch Today
[Monday, February 1, 10:17 am]
Contributed by Sarah Smith
- A silver surge. What do bars of silver and an old-school video game retailer have in common? Both are winners of coordinated Reddit rallies. Today, it appears that r/WallStreetBets has its sights on silver stocks, and a rally is already underway. Prices of top equities like Pan American Silver (NASDAQ:PAAS), Avino Silver & Gold (NYSEMKT:ASM) and the iShares Silver Trust (NYSEARCA:SLV) are soaring on Monday. Plus, various retailers are warning that they cannot meet demand for silver bars and coins as the #SilverSqueeze takes hold.
- Trade war, meet Biden. President Joe Biden will begin to review the phase-one trade deal between the United States and China, in addition to other national security measures. As we shared earlier in 2021, data shows that China is not fulfilling its side of the bargain. According to the latest report, China missed its import target by 42%. That fact leads Dion Rabouin to write for Axios that Biden will likely find out that the trade deal is a “debacle.” What comes next should have investors paying close attention. For much of 2019 and early 2020, the trade war was a top story. Investors feared the repercussions on equities like Alibaba (NYSE:BABA), and on more obscure markets like that for soybeans.
- SPAC attack. Where should investors look next? We have seen the market move from GameStop (NYSE:GME) to Dogecoin (CCC:DOGE) to silver stocks and XRP (CCC:XRP). But with the Reddit rally still captivating Wall Street, retail investors will continue to look for the next opportunity to profit. As Amrith Ramkumar wrote for the Wall Street Journal, that next avenue may very well be special purpose acquisition companies. According to Ramkumar, SPACs are delightfully speculative for day traders. That has resulted in massive gains for leading blank-check companies, even prior to merger announcements. One example of this power is Churchill Capital IV (NYSE:CCIV), which has been powering higher without a confirmed acquisition target.
Robinhood Maintains Restrictions on 8 Popular Stocks
[Monday, February 1, 9:44 am]
Contributed by Sarah Smith
Despite blowback over its decisions, Robinhood will continue to limit trading on eight popular stocks. That list includes top r/WallStreetBets names GameStop (NYSE:GME) and AMC Entertainment (NYSE:AMC), as well as six others. As a result of the restrictions, investors will able to open a limited amount of new positions in these stocks. They will also face restrictions on options trading and on purchasing fractional shares.
For more, read the InvestorPlace.com brief here.
Dow Adds 200 Points to Start Monday
[Monday, February 1, 9:32 am]
Contributed by Sarah Smith
- The S&P 500 opened higher by 1.07%
- The Dow Jones Industrial Average opened higher by 0.92%
- The Nasdaq Composite opened higher by 1.25%
- The Russell 2000 opened lower by 1.57%
Stock Market Futures Climb to Start February
[Monday, February 1, 8:13 am]
Contributed by Sarah Smith
- S&P 500 futures are up 0.96%
- Dow Jones Industrial Average futures are up 0.72%
- Nasdaq Composite futures are up 1.07%
- Russell 2000 futures are up 1.02%
