Major indexes open broadly higher; GameStop, AMC crumble
Stocks were broadly higher in early trading Tuesday, but shares of closely watched companies like GameStop and AMC Entertainment were trading sharply lower.
The S&P 500 and the Dow Jones Industrial Average each rose 1.2% as of 10 a.m. Eastern. The Nasdaq rose 1.1%. Big Tech companies were among the early winners, as were several energy companies including Exxon Mobil and Marathon Petroleum, both of which reported better results than analysts were expecting. UPS rose after reporting record revenue. Treasury yields rose, as did crude oil prices.
While the broader market was solidly higher, most of Wall Street’s attention is on a set of beaten-down companies who have seen their shares surge due to intense online interest.
GameStop dropped 50%, and AMC Entertainment lost 40%. Both companies have in the spotlight for more than two weeks as an online community of investors pushed the stocks to astronomical levels. Trading in those and several other stocks have been restricted by the popular online trading platform Robinhood since last last week following the bouts of extreme volatility.
Uber rose 7% after the company said it would buy liquor delivery service Drizly for $1.1 billion in cash and stock.
Investors continue to focus on Washington. President Biden invited 10 moderate Republicans to the White House to discuss his proposed $1.9 trillion economic aid plan. Republicans earlier countered with an offer of $600 billion, or less than one-third of Biden’s proposed amount.
Investors bid up stocks heading into 2021 in expectation the rollout of coronavirus vaccines would allow global business and travel to return to normal. That optimism has been dented by infection spikes and disruptions in vaccine deliveries.
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