Here are the top news, trends, and analysis investors need to get their trading day started:
1. Dow aims to contribute to Wednesday’s record high
Traders work on the trading floor of the New York Stock Exchange.
Dow futures rose Thursday, the day after the 30-stock average hit an intraday all-time high and closed on a record in a volatile session. The S&P 500 and Nasdaq failed to hold their all-time highs during the day on Wednesday and closed a little lower.
The Department of Labor reported 793,000 new claims for unemployment benefits for the past week on Thursday morning. That was less than the previous week’s revised upward of 812,000, but higher than estimated. The four-week moving average of initial jobless claims was 823,000 – a decrease of 33,500 from the previous period but still showing signs of a tough job market during the pandemic.
Federal Reserve Chairman Jerome Powell said monetary policy must remain “patiently accommodative” on Wednesday to support the economy, which is still facing labor market challenges. The employment picture is “far away,” said the central bank chief to the Economic Club of New York.
2. PepsiCo exceeds expectations; Uber has mixed results
Pepsi soft drinks are on display in a supermarket in San Francisco, California.
Justin Sullivan | Getty Images
Investors once again focused on the result. Disney tops the list of major companies reporting quarterly results after Thursday’s closing bell. Before the market opened, PepsiCo reported earnings of $ 1.47 per share for the fourth quarter, a penny better than estimated. Revenue rose 8.8% to $ 22.46 billion, exceeding expectations. The PepsiCo share increased slightly in the pre-market.
A traveler checks his phone next to an Uber sign at Los Angeles International Airport in Los Angeles, California on August 20, 2020.
Robyn Beck | AFP | Getty Images
Uber stock fell about 2.5% on the Thursday before going public after the company reported an unexpectedly small loss of 54 cents per share in the fourth quarter. However, sales fell 16% to a below-expected $ 3.17 billion. Uber’s hail business was slowly recovering from the pandemic, while delivery business was booming.
3. Cannabis stocks jump into a Reddit trade reminiscent of GameStop
Dry cannabis flowers in the packaging room at Aphria Inc.’s diamond factory in Leamington, Ontario, Canada on Wednesday, January 13, 2021.
Anne Sakkab | Bloomberg | Getty Images
Cannabis stocks rose as Reddit traders stepped in, like the recent one at GameStop. Tilray stock was up nearly 51% on Wednesday and is up more than 670% year-to-date. Tilray’s short interest wasn’t nearly as high as it was at GameStop at the end of January, and it was still 22.5% of the stocks available for trading, according to FactSet. Tilary gained another 10% on the Thursday before the market. The company is no stranger to a short squeeze rally. The stock gained more than 1,400% between July and September 2018, but those gains didn’t last.
4. Dating app company Bumble will start trading after going public
When 31-year-old Bumble CEO Whitney Wolfe Herd goes public with her dating app company on Thursday, she will be known not only for her youth, but also as one of the few founders to lead a company to an IPO. Bumble, whose board of directors is 73% women, valued its offering at $ 43 per share on Wednesday night, raised $ 2.2 billion, and valued Bumble at around $ 8 billion. The stock market reaction will serve as the litmus test for companies founded by women, which make up only 7.4% of Fortune 500 CEOs. That’s an all-time high, but still astonishingly low.
5. House Impeachment Managers press the case against Trump
The property managers are pushing for the case against former President Donald Trump in his second impeachment on Thursday. Trump’s lawyers are expected to start their defense by the end of the week. The terrifying security video of last month’s deadly riot in the U.S. Capitol, including scenes of rioters looking for House Speaker Nancy Pelosi and then Vice-President Mike Pence, was unveiled on Wednesday as a key exhibit by Democratic lawmakers pursuing the case, why Trump should be condemned to initiate the siege.
– The Associated Press contributed to this report. Follow CNBC’s blogs about the markets, the pandemic and Trump’s impeachment.
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