GameStop shares are rising on NFT plans, Cathy Wood’s ARK Innovation fund is criticized by tech about-face, and Wall Street is awaiting December’s jobs report.
Here are five things you need to know for Friday, January 7:
1. – Stocks indicate higher openness ahead of jobs report
U.S. equity futures were showing a slightly higher open early Friday morning ahead of a key U.S. jobs report that is expected to show further job growth in December, despite the rising variant of the omicron.
Futures contracts linked to the Dow Jones Industrial Average show an opening gain of 45 points, while those linked to the S&P 500 are valued at a gain of 5.25 points. Futures contracts linked to the tech-driven Nasdaq Composite show a 4.5 point rise at the start of trading, with benchmark 10-year T-bill yields trading slightly at 1.725%.
Global benchmark Brent crude rose 0.7% to $ 82.54 a barrel, its highest level in more than eight weeks as oil supply is expected to be potentially weaker due to freezing conditions in the Midwest and Canada, and whether protests in oil-rich Kazakhstan continue.
Stocks ended lower on Thursday as the Federal Reserve was expected to withdraw economic stimulus measures to curb inflation earlier than expected.
Economists and investors have recalibrated their expectations on how inflation, which is currently well above the Fed’s 2% annual target, will be brought under control by the Fed, and what that will mean for companies that have relied on low interest rates during the pandemic.
Further guidance on whether wages are fueling the inflation equation will come at 8:30 a.m. ET when the Labor Department releases its latest job growth tally.
Economists polled by FactSet expect the U.S. economy to have created 422,000 new jobs last month, a lower figure than ADP’s tally of 807,000 released on Wednesday, though they also expect that the unemployment rate rose a notch to 4.2% against 4.1% in a context of tight hiring.
Average hourly wages, a key indicator of the cost to employers of keeping workers at work and a component of headline inflation, is expected to have reached 0.4% in December month-over-month and 4.2% From one year to another. .
2. – GameStop actions jump on NFT plans
GameStop (GME) – Get the Class A report from GameStop Corp. Shares continued to trade higher on Friday after a report was released that the games retailer is launching a division to develop a market for non-fungible tokens, or NFTs, making a foray into the crypto world. currencies and blockchain.
GameStop shares rose more than 30% in after-hours trading on Thursday after Wall Street announced the video game retailer hired nearly two dozen people to run an NFT platform, which is intended for use in trading virtual assets in video games. .
GameStop is said to be partnering with two crypto companies to “share technology and co-invest in the development of games using blockchain and NFT technology, as well as other NFT-related projects,” according to the Journal, citing people familiar with the plans. .
The report states that GameStop is asking certain game developers and publishers to list NFTs in its market when it plans to launch later this year.
GameStop Retail ‘Apes’ has been expecting news of an NFT market and a crypto game for months, saying it is a key part of the president’s recovery master plan company Ryan Cohen, and it’s been over a year to hear it since Cohen, as an activist investor, took a significant stake in the video game retailer and triggered the January 2020 short squeeze.
At one point last year, GameStop shares rose more than 500%, although they also fell below $ 20. It ended the regular trading session Thursday at $ 131.03 per share. At 6 a.m. ET on Friday, GameStop shares were up 18.1% to $ 154.74 in pre-market trading.
3 – Sale of Cathy Wood’s ARK Innovation fund reaches 48%
ARK Innovation, Cathie Wood’s flagship fund (ARKK) – Get the ARK Innovation ETF report remains caught in the epicenter of the tech sell-off this week as some of its biggest holdings dragged down the popular exchange-traded fund’s returns.
At its Thursday low on Thursday, the innovation-driven ETF was down more than 48% from its all-time intraday high of February 2021. That’s a worse drop than the fund has. experienced in March 2020 during the trough of the pandemic market debacle.
Of the 43 holdings in ARK Innovation, 36 are over 40% of their 52-week highs. You’re here (TSLA) – Get the Tesla Inc report, Year (YEAR) – Get the Class A report from Roku, Inc., Teladoc Health (TDOC) – Get the report from Teladoc Health, Inc. and video zoom (ZM) – Get the Class A report from Zoom Video Communications, Inc. are some of ARK Innovation’s main holdings.
“The performance of Cathie Woods ARKK is so excruciating that while it is not a hedge fund and cannot be shot, it is a veil on every asset. Trying to discuss opportunities but hard to find … It’s such a tough streak … “CNBC’s Jim Cramer said on Twitter Thursday.
Wood herself doesn’t let the tech wreck stop her from picking up what she thinks are potential bargains. Wood continued to buy down his favorite stocks, including DraftKings (DKNG) – Get the DraftKings Inc Class A report, Véracyte (VCYT) – Get the Veracyte Inc report and Roblox (RBLX) – Get the Class A report from Roblox Corp..
ARK Innovation closed 0.6% lower at $ 85.58 per share on Thursday.
4.- 2021 compensation package for Apple CEO Tim Cook: $ 100 million
Apple (AAPL ) – Get the Apple Inc.CEO Tim Cook received nearly $ 100 million in compensation in 2021, a year in which he completed 10 years as CEO of the company and led the iPhone maker to record profits for a year. global pandemic.
Cook’s $ 98.7 million salary was up more than 500% from the $ 14.8 million a year earlier, according to the tech giant’s annual proxy filing with the Securities and Exchange Commission. Cook’s base salary of $ 3 million remained unchanged.
Apple shares rose about 80% last year and have continued to rise in recent days, briefly pushing the tech giant’s market value to over $ 3 trillion this week. Apple reached $ 3 trillion about 500 days after first crossing the $ 2 trillion level. In August 2018, Apple became the first US company to be worth $ 1,000 billion.
Wedbush analyst Daniel Ives said earlier this week that while supply chain shortages dominated Wall Street conversations around Apple during the holiday quarter, he is instead focusing on the solid consumer demand looming for the iPhone 13 through 2022.
Based on his supply chain checks over the past few weeks, Ives said he believed demand exceeded Apple’s supply by around 12 million units in the December quarter. This will now add to favorable winds for the business in the March and June quarters, as supply chain issues ease in the first half of 2022.
Apple’s earnings and sales in fiscal 2021 broke past records for the company, with sales exceeding $ 365 billion.
5. – Google loses to Sonos in patent infringement case
Google (GOOGL) – Get the Class A report from Alphabet Inc. violated audio patents owned by Sonos (I AM) – Get the Sonos, Inc. and does not have the right to import some of its Nest speakers and other infringing products, a US trade agency ruled Thursday.
The U.S. International Trade Commission found that Alphabet-owned search giant violated five of Sonos’ patents relating to audio sync, volume control, and Wi-Fi connection. The court ruled that Google should stop importing products using these patents.
Sonos chief legal officer Eddie Lazarus told the Wall Street Journal the move was a “global victory” for the company and called on Google to “pay a fair royalty for the technologies it has hijacked.”
Google spokesman José Castañeda told the Journal that the tech giant will appeal the decision. “We will seek further scrutiny and continue to defend against Sonos’ frivolous claims regarding our partnership and our intellectual property,” he said.
Analysts expect the move to have a limited effect on Google’s product line, as the company redesigned some previously counterfeit products, such as its Pixel smartphones and Nest speakers. The court reviewed these changes and ruled that the revised products can be shipped without violating the import ban.
Sonos shares rose 5.65% in after-hours trading. Alphabet shares rose 0.3% after office hours.