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What Did the Stock Market Do? Jan. 26, 2021

Latest Updates:

Prison Stocks Take a Hit From Biden

[Tuesday, January 26, 4:14 pm]
Contributed by Sarah Smith

President Joe Biden has encouraged many sectors in his first few days in office, especially leading to a rally in alternate energy plays. Just today, we saw such a rally in motion, with Workhorse (NASDAQ:WKHS) and its peers gaining big on hopes for the federal government electrifying its fleet. However, not all stocks are so lucky.

Today, Biden also shared that he will not renew contracts with private prisons as part of his plans to address racial inequality in the United States. This will come about through an executive order that directs the Department of Justice to not renew its private contracts. Biden signed an additional three executive orders today as part of his focus on racial injustices, including an order that will tackle housing discrimination and an order focusing on equitably including Asian Americans and Pacific Islanders in federal Covid-19 responses.

Investors should note that, unsurprisingly, prison stocks suffered as a result of the news. The GEO Group (NYSE:GEO) shares closed lower by 7.8%, while CoreCivic (NYSE:CXW) shares closed lower by 6.1%. As Adam Sarhan wrote for Forbes, these stocks have been in a longer-term downtrend despite the federal contracts.

Stocks End Tuesday in the Red

[Tuesday, January 26, 4:03 pm]
Contributed by Sarah Smith

  • The S&P 500 closed lower by 0.15%
  • The Dow Jones Industrial Average closed lower by 0.07%
  • The Nasdaq Composite closed lower by 0.07%
  • The Russell 2000 closed lower by 0.46%

Electric Vehicle Stocks Surge on Biden Plans

[Tuesday, January 26, 3:59 pm]
Contributed by Sarah Smith

Workhorse (NASDAQ:WKHS) was undoubtedly one of the big winners in the stock market today.

WKHS stock and its peers Lordstown Motors (NASDAQ:RIDE), Hyliion (NYSE:HYLN), Nikola (NASDAQ:NKLA) and a handful of other electric vehicle names were rallying thanks to President Joe Biden. Essentially, yesterday marked the start of a new era for electric vehicles that features federal backing. While signing an executive ordered focused on “Buy America,” Biden said he wanted to convert federal government vehicles to electric models. This will create approximately 1 million automotive jobs and spur demand for as many as 645,000 all-electric vehicles.

For Workhorse and other EV names, this is big news. For more, read the InvestorPlace.com brief on EV stocks here.

Afternoon Update: Stocks Remain Slightly Positive

[Tuesday, January 26, 2:17 pm]
Contributed by Sarah Smith

  • The S&P 500 is higher by 0.12%
  • The Dow Jones Industrial Average is higher by 0.17%
  • The Nasdaq Composite is higher by 0.18%
  • The Russell 2000 is lower by 0.3%

5 Reddit Stocks That Could Be the Next GameStop

[Tuesday, January 26, 1:31 pm]
Contributed by Sarah Smith

GameStop (NYSE:GME) is up another 40% today as it continues its incredible move higher. It looks like Reddit and its r/WallStreetBets community continues to stoke the fire, powering GME stock. As retail investors continue to hop on the bandwagon and confuse the pros, some traders are already looking for the next GameStop. What does that mean?

Well, there are a few factors about GameStop that make it stand out so much. When this all started, GME stock shares were trading for less than $10 and had high short interest. Fans were also betting on a turnaround story thanks to Chewy (NYSE:CHWY) founder Ryan Cohen. Sure, it was incredibly speculative, but it is the stuff $11 million dreams are made of for a day trader.

Looking at these factors as steps to a recipe, names like BlackBerry (NYSE:BB), Koss (NASDAQ:KOSS) and Nokia (NYSE:NOK) are making waves. For more on why these companies could be the next GameStop, check out our InvestorPlace.com brief on Reddit stocks here.

Etsy Tumbles After Elon Musk Incites Rally

[Tuesday, January 26, 12:53 pm]
Contributed by Sarah Smith

Tesla (NASDAQ:TSLA) CEO Elon Musk apparently has a soft spot in his heart for handmade goods. In fact, an announcement that Musk recently purchased a Marvin the Martian helmet for his dog sent Etsy (NASDAQ:ETSY) shares soaring this morning.

Etsy is an e-commerce hub for handmade and vintage goods, and the company has had a successful few months thanks to Covid-19. As many sellers turned to the platform for some extra cash, many consumers turned to the platform for handmade face masks. Because of this, Wall Street is a fan of the name, identifying ETSY shares as some of the best to buy for the future of retail. Musk has huge influence, so his endorsement furthered that success earlier this morning.

However, after gaining nearly 10% before the opening bell, shares have pulled back. ETSY stock is currently down less than 1% in intraday trading. For more, read the InvestorPlace.com brief on Etsy stock here.

Major Indices Launch Higher Tuesday

[Tuesday, January 26, 9:33 am]
Contributed by Sarah Smith

  • The S&P 500 opened higher by 0.33%
  • The Dow Jones Industrial Average opened higher by 0.27%
  • The Nasdaq Composite opened higher by 0.39%
  • The Russell 2000 opened lower by 0.25%

3 Big Stories to Watch Today

[Tuesday, January 26, 8:42 am]
Contributed by Sarah Smith

  1. Reddit. As Courtenay Brown wrote for Axios this morning, retail investors are beating the old guard with some bold bets. GameStop (NYSE:GME), a struggling brick-and-mortar video game retailer, has been in the spotlight. As hedge fund managers slash their ratings and outright cease coverage of GME stock, retail investors are profiting from a powerful short squeeze and cult-like devotion. Although there is a case for a legitimate turnaround via Chewy (NYSE:CHWY) founder Ryan Cohen, so much of the story comes from social media speculation alone. Today, it is clear just how powerful this narrative is. Investors are turning to other stocks to find the next GameStop. This has names like Koss Corporation (NASDAQ:KOSS), Clovis Oncology (NASDAQ:CLVS) and AMC Entertainment (NYSE:AMC) up big.
  2. Earnings, earnings, earnings. In all the mayhem of social media and post-inauguration politics, it may have been easy to forget that the corporate earnings season is still chugging along. Tuesday morning brings a quick reminder of that reality. On the docket today are earnings from 3M (NYSE:MMM), General Electric (NYSE:GE), Lockheed Martin (NYSE:LMT), Johnson & Johnson (NYSE:JNJ) and Microsoft (NASDAQ:MSFT).
  3. Impeachment. Yesterday marked another milestone in the second impeachment of former President Donald Trump. House impeachment managers delivered the article of impeachment to the Senate on Monday, setting the stage for a trial. In that trial, lawmakers will determine whether or not to convict Trump on the basis of inciting insurrection against the U.S. government. As Jacob Pramuk wrote for CNBC, the Senate trials will launch the week of Feb. 8.

Stock Market Futures Suggest Mixed Open

[Tuesday, January 26, 8:16 am]
Contributed by Sarah Smith

  • S&P 500 futures are higher by 0.16%
  • Dow Jones Industrial Average futures are higher by 0.26%
  • Nasdaq Composite futures are lower by 0.04%
  • Russell 2000 futures are higher by 0.59%
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Article printed from InvestorPlace Media, https://investorplace.com/stock-market-live-updates-tuesday-stock-market-today-news-01262021/.

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