U.S. markets closed mixed on Tuesday, with the Dow Jones industrials up less than 1%, while the S&P 500 dipped by 0.1% and the Nasdaq slipped by 1.3%. The Dow and the S&P 500 posted new intraday highs, and the Dow closed at another all-time high. The upcoming release of the minutes from the December FOMC meeting has traders and investors ready to scour the document for any hint that expectations may change. Premarket trading indicated a lower start.
Crude oil traded settled at around $77 a barrel on Tuesday and traded up about 0.3% early Wednesday. Bitcoin remains above $46,000 but down slightly from the most recent close. The yield on 10-year Treasury notes closed at around 1.65% Tuesday, up 13 basis points since the end of December. The expected increase in interest rates is weighing on growth stocks in the tech sector especially, but also in health care and consumer cyclicals. The spread between 10-year and two-year yields widened by four basis points to 0.89 at Wednesday’s close.
One meme stock we have heard little about in the past couple of months is Senseonics Holdings Inc. (NYSEAMERICAN: SENS). The company’s latest continuous glucose monitoring (CGM) system for people with diabetes has been stuck in the long FDA queue of COVID-19-related filings. Late Tuesday, the company said that the FDA’s review of its 180-day Eversense CGM system is “nearing completion” and that the company is expecting to begin the transition from the current 90-day Eversense system in the second quarter of this year. Senseonics also reiterated its 2021 revenue guidance in the middle of a $12 million to $15 million range. Shares traded up by around 18% in Wednesday’s premarket.
Bakkt Holdings Inc. (NYSE: BKKT) dropped by nearly 10% on Tuesday to close at $7.53, after setting a new 52-week low of $7.41. The company had no specific news, but the glow from earlier deals with Visa and Fiserv for Bakkt’s cryptocurrency custody accounts have pretty much dimmed, and investors are waiting for more news of the what-have-you-done-for-me-lately variety.
AMC Entertainment Holdings Inc. (NYSE: AMC) slipped by nearly 4% on Tuesday and traded down more than 1% in Wednesday’s premarket session. The OG meme stock had no specific news, but this WallStreetBets post may offer a clue to the falling share price:
Also AMC to sell Red Vines locally through Girl Scouts of America
MOON TIME BOIS!!!!! 🚀🚀🚀🚀🚀
CEO Adam Aron’s plan to refinance AMC’s debt is not altogether a hit with Reddit’s AMC apes.
Tesla Inc. (NASDAQ: TSLA) dropped more than 4% on Tuesday and traded down by more than 1% in Wednesday’s premarket session. It could be that investors want the company’s fourth-quarter earnings report (due out later this month) to verify the strong deliveries report. Then add to that Tuesday’s announcement by Sony that it plans to establish a mobility company to focus on EVs. The company even showed off prototypes of its Vision-S EVs at the Consumer Electronics Show. While Sony does have deep pockets, it is hard to see how a maker of electronic gadgets is going to bust into the EV market. Stay tuned.