Did I miss what the hell is going on with the DOW today???? Down over 600 points now......

[a kennedy]

[samnsara]

1. time to buy!

[Bernardo de La Paz]

2. I'm not following any live biz news, but it might be a reaction to the Gamer stock short collapse

People have been using Reddit to pump up stocks lately.

[elleng]

4. Prolly

[soothsayer]

15. Fascinating story on it

https://www.vice.com/en/article/pkdvgy/send-this-to-anyone-who-wants-to-know-wtf-is-up-with-gamestop-stock

Snip

You have been sent here because your child, partner, or friend suggested that you invest your life savings into GameStop stock and you are curious what the fuck is going on. This post is long and thorough and mostly does not discuss memes and "the internet" until the end, but if you read it you will hopefully understand What Is Happening.

What is going on is that GameStop, a company that sells physical copies of video games next to Auntie Anne’s pretzel shops in dying malls, is the most highly traded asset in the United States, a “meme stock,” and currently the primary front in a micro class war. GameStop’s stock price jumped from $4 last summer to $20 at the end of 2020, to $40 two weeks ago. It was worth $100-ish at times on Monday and Tuesday, and as I write this it is worth close to $300. Essentially, many normal-ish people have made a huge bet against gigantic financial institutions and are currently winning. In practice this means we are seeing one of the largest wealth transfers from the financial ruling class to the middle and middle-upper classes in recent memory, so it is, understandably, the only thing anyone is talking about.

How did this happen? A bunch of Redditors in the r/WallStreetBets subreddit, led by a person going by "DeepFuckingValue," analyzed GameStop stock and concluded that its price was undervalued. They then, over the course of months, identified a weakness in the strategies of several giant hedge funds that had bet many millions of dollars that GameStop would fail.

These Redditors purchased huge numbers of GameStop stock at low prices (and then kept buying more as the prices rose), held it, and are currently forcing something known as a “short squeeze” that is driving the price up and is emptying these hedge funds in the process. These Redditors are diamond-handing (holding) their stocks, imploring each other to not be a weak-minded stock seller (paper hands) and are waiting for their messiah Ryan Cohen—the CEO of Chewy.com who invested millions in GameStop last year—to hitch them to his rocket and take them to the moon/sun/Mars (become very rich).

[kickitup]

21. Great explanation. Thanks for posting it.

My son apparently bought GameStop Stock at $40 a share. He called his father last night wanting to know if he should sell. I had no idea anything was even going on.

[Bernardo de La Paz]

24. Thanks. . . . nt

[dhol82]

3. It's recovered about 100 points but the whole market is on the skids.

Not quite sure why.

[FBaggins]

5. Biden's fault of course

/sarcasm

Seriously... it looks like a normal pullback triggered by the Fed opening their mouths.

[RAB910]

6. The feds had an announcement today

they are essentially standing pat. I guess some were excepting some sort of move by he feds

[True Dough]

7. I read that there's concerns over a slowdown in China

And China makes a lot of sectors move.

[FBaggins]

8. Biden's fault of course

/sarcasm

Seriously... it looks like a normal pullback triggered by the Fed opening their mouths.
We've had a serious runup in recent weeks.

[highplainsdem]

9. Marketwatch: Dow skids over 600 points lower near Wednesday's nadir as Fed's Powell says COVID 'adds

to economic uncertainty'


https://www.marketwatch.com/story/dow-skids-over-600-points-lower-near-wednesdays-nadir-as-feds-powell-says-covid-adds-to-economic-uncertainty-2021-01-27

[elleng]

10. Stocks are on track for their worst day since October ahead of a wave of earnings reports.

'Wall Street was headed for its sharpest daily decline in months on Wednesday, with the S&P 500 falling more than 2 percent, as investors awaited a number of earnings reports from large technology companies and as the Federal Reserve issued a glum assessment of the economy.

The sell-off came amid a speculative frenzy in some corners of the market that drove up shares of some mostly small, struggling companies. After the S&P 500 rallied more than 16 percent in 2020, hitting record after record despite the economic damage caused by the pandemic, investors have grown concerned that financial markets have become detached from reality.

Though the trading that grabbed Wall Street’s attention this week is only in a handful of stocks — including GameStop and AMC Entertainment — the level of speculation is reminiscent of trading during the dot-com bubble two decades ago. On Wednesday alone, GameStop more than doubled and AMC surged by some 250 percent.

Those gains, though, stood in stark contrast to a sell-off in the rest of the market. The S&P 500 was on track for its worst daily decline since late October.

The drop seemed to steepen as the Federal Reserve said it saw economic activity in the United States moderating, “with weakness concentrated in the sectors most adversely affected by the pandemic.”'>>>

https://www.nytimes.com/live/2021/01/27/business/us-economy-coronavirus?

[triron]

12. And so pukes will blame it on the Biden administration of course.

[soothsayer]

11. The stock market is prone to hysteria

It’ll pass

[James48]

13. It's fine.

It’s now at a level that was an all-time high just last week.

Up and down is just another buying opportunity..

[servermsh]

14. Keep in mind larger absolute value swings are more common because the DOW is at 30,000

600 points meant a lot more when the DOW was at 10,000.

[judesedit]

16. It's probably correcting after so many are actually out of work and in food lines

[jimfields33]

17. 600 is chump change in today's market.

A nice 20 percent correction is needed and hopefully beginning. It’s like a balloon. Let the air out a bit before it pops. Also buy buy buy!!!!

[orwell]

18. The market has been on a vertical rise...

...for almost 9 months straight since the Covid low.

It is due for a big pullback.

The valuations across the board are astronomical.

[lame54]

19. Someone returned a disk to Game Stop

[Johnny2X2X]

20. The Fed and Boeing

The economy is basically in shambles. The Fed changed the language in their outlook to reflect that.

Also, Boeing booked a $14.4B loss last year which they reported today. They're in troub;e.

[brooklynite]

22. PANIC!!!!!

BUY!!!

SELL!!!

GOLD!!!

SILVER!!!

OPTIONS!!!

(market is anticipating various earnings reports; it'll be up again.)

[cbdo2007]

23. Oh good lord, can we stop the daily stock market watching already?

Likely anything you read in the news about ups and downs in the market were already priced in weeks ago by the experts and daily swings of 2% are really not uncommon in todays market, in either direction.

[Olafjoy]

25. I also heard that investors who shorted the companies Redditors drove up

Are having to sell some of their blue chip stocks to cover their losses.

[elleng]

26. *Discussed on pbs newshour.