The Dow Jones index is 1% higher at 30,602.54 points. The S&P 500 is trading 1%, the Nasdaq is up 0.5%.
Chief strategist Olaf van den Heuvel of Aegon Asset Management attributes the increase, after losses before stock exchange, to the great turbulence. The market is in the ecstasy of a classic bubble, he says.
The United States reported a fourth-quarter growth rate of 4% versus an expectation of 4.3%. That is the second period in a row with growth.
The number of unemployment claims in the United States reached 847,000 last week, according to the Department of Labor. A windfall, the market surveyed by Dow Jones was counting on 875,000 requests for financial support.
New hunting area
Shares moved wildly. New Concept Energy became worth 933% more.
American Airlines initially rose 28% thanks to the new attention, partly due to good quarterly results, and closed 9.5% higher.
Thousands of private investors, who have been gathering for weeks via social media such as the Wall Street Beets section of Reddit.com, have been targeting short sellers in US airlines using call options since last night.
Thanks to built-in levers in their investments, they push the share exponentially higher, forcing short sellers who expect a loss to buy the shares they do not own in order to cover their losses.
The purchases are made at a higher price than the short sellers had foreseen: a substantial loss for the funds, but huge profits for the investors.
In the Netherlands, such investment activities became a retail property fund Unibail Wednesday pushed 19% higher, Thursday recorded a 1.5% loss.
The group approach worked first GameStop, game seller. The stock closed 33% lower. On Wednesday, the share doubled, this year it gained 1750%.
As the ‘comrades’ on Reddit announced on Wednesday, collective share buybacks from about 2.5 million users also get the shares AMC (-55%), Bed, Bath & Beyond (-37%) and Koss (-28%) a push from investors who turn against the ‘stock market sharks’ of Wall Street. Initially that worked.
The change came when the popular investor app Robinhood in the US stopped purchases in, among others, the shares GameStop, AMC, BlackBerry and Nokia. Trading in options was also limited. The app only allowed sales of those shares. Interactive Brokers also followed with such measures.
To the anger of users: they could not propel the price with mere sales. Subsequently, more and more shares plunged into loss.
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On Thursday, investors then went to silver. That price rose sharply.
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Snap, the parent company of Snapchat, increases 8.5%. Analysts became “very bullish” about the app service.
Investors also respond to the quarterly results of Apple, which posted its largest quarterly revenue ever at $ 111.4 billion. The share falls 3.5%.
Battery dispenser Tesla goes back 3.3%. His quarterly results disappointed the market. The group expects to grow 50% this year.
Facebook lost 2.6%. It trumped expectations with quarterly figures.
Hamburger chain McDonald’s (-0.1%) missed expectations of $ 1.78 EPS with its quarterly results.
Network company Comcast (+ 6.6%), parent company of CNBC and NBCUniversal, was 8 cents above consensus for the quarter at $ 0.58 earnings per share.
Jeansmaker Levi Strauss (-5.8%) reported higher earnings per share on its three-month reporting.
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