Today is Wednesday, January 19, 2022.
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Meme Stock AMC Gives Up Past Gains
Shares of AMC Entertainment (NYSE: AMC) fell 8.41% on Tuesday, erasing all the gains that the popular meme stock made last spring.
Catalyst: One potential reason for AMC’s recent downfall is CEO Adam Aron selling another $7 million in shares last week. That’s $40 million in shares that Aron sold in the last three months. Aron says that he is done selling shares for now.
Bigger Picture: AMC wasn’t the only meme stock to drop on Tuesday, as shares of GameStop (NYSE: GME) fell 6.6% as well.
Trending: The hashtag #AMCSqueeze trended on Twitter yesterday as people pleaded for investors to stay long in the hopes that there would be another short squeeze.
Final Thoughts: It is possible that AMC will continue to tumble. However, some investors might think another run is possible and decide to buy the dip.
Notables
Notable Earnings Today: Bank of America (NYSE: BAC), UnitedHealth Group (NYSE: UNH), Morgan Stanley (NYSE: MS), Discover Financial Services (NYSE: DFS), Fastenal (Nasdaq: FAST), U.S. Bancorp (NYSE: USB), Wintrust Financial (Nasdaq: WTFC), ASML Holding (Nasdaq: ASML), Procter & Gamble (NYSE: PG), Alcoa (NYSE: AA), Comerica (NYSE: CMA), Kinder Morgan (NYSE: KMI), State Street (NYSE: STT), H.B. Fuller (NYSE: FUL), PacWest Bancorp (Nasdaq: PACW), FNB Corporation (NYSE: FNB).
Notable IPOs Today: NSTS Bancorp, Inc. Common Stock (Nasdaq: NSTS), Exelon Corporation Common Stock Ex-Distribution When-Issued (Nasdaq: EXCVV), AIB Acquisition Corporation Unit (Nasdaq: AIBBU).
Notable Equity Crowdfunding Campaigns Ending Today: Mira Zaki Photography (SMBX), ASK Education (NetCapital), American Stories Entertainment (TruCrowd), Serenity Cafe (Honeycomb), Dope Pieces (HoneyComb), Gamestar+ (Wefunder), Scooterson (StartEngine).
Notable Economic Events Today: Building Permits (8:30 a.m. ET), Housing Starts (8:30 a.m. ET).
Energy Stocks Jump As Oil Reaches 7-Year High
Crude oil reached its highest price since 2014, which helped several stocks in the energy space.
Catalyst: Oil prices jumped mainly due to geopolitical risks, including issues in the Middle East. Supply and demand concerns also pushed oil prices higher.
Numbers: Shares of BP (NYSE: BP) increased 1.08% on Tuesday, with Occidental Petroleum Corporation (NYSE: OXY) soaring 1.49% and Exxon-Mobile jumping (NYSE: XOM) 1.68%.
Going Green: Exxon also benefited from a pledge on Tuesday to go carbon neutral by 2050. Investors should take notice of other energy stocks that also embrace similar environmental goals.
Final Thoughts: Reports of an explosion at an oil pipeline in Iraq emerged on Tuesday night. This could impact the price of oil on Wednesday.
Will a Spot Bitcoin ETF Arrive This Year?
Experts say that 2022 will finally be the year when the United States Securities and Exchange Commission (SEC) finally approves of a spot Bitcoin exchange-traded fund (ETF).
Definition: A spot Bitcoin ETF is an investment vehicle that tracks the price of the actual cryptocurrency. It is different than other ETFs that track Bitcoin futures contracts.
History: In 2021, the SEC approved the first Bitcoin futures ETFs. There is now some expectation that the SEC will approve of a spot Bitcoin ETF this year, which would give investors a new option for cryptocurrency.
Stalling: There is concern that the SEC could stall the decision in 2022. At the beginning of January, the SEC once again pushed back its decision on a spot Bitcoin ETF to mid-March. Will the SEC continue to kick the can down the road or will it finally make a decision this year?
Final Thoughts: Grayscale Bitcoin Trust (OTCMKTS: GBTC), a large Bitcoin fund, is trying to convert to a spot Bitcoin ETF this year. This could be an interesting investment vehicle to watch.
Trends to Watch
Overhaul: FTC, DOJ seek to rewrite merger guidelines, signaling a tougher look at large deals (CNBC)
IPO Time: Meet Tritium - the latest electric vehicle charging specialist to go public (Seeking Alpha)
Bank on It: SoFi Granted U.S. Bank Charter as Firm Acquires Golden Pacific (Bloomberg)
Not the Right Climate: BlackRock’s Larry Fink tells fellow CEOs that businesses are not ‘climate police’ (The Washington Post)
Goodbye, Checking Accounts: Bank of America Says UK CBDC Would Be More Than a Digital Form of Cash (CoinDesk)
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