Here is a Market Recap for today Wednesday, February 10, 2021. Please enjoy! – #stocks chatter


Here is a Market Recap for today Wednesday, February 10, 2021. Please enjoy!
**PsychoMarket Recap - Wednesday, February 10, 2021**

Stocks turned lower again on Wednesday, as the S&P 500 (SPY) and the Nasdaq (QQQ) closed the second day of declines. After the market’s historical rally the last few weeks, a pullback could be beneficial to let the market take a breather to recharge for another rally. Too many consecutive green days can make the market over-extended.

Market participants continue to focus on developments out of Washington surrounding stimulus. Both the Senate and the House of Representatives voted to move forward to move forward with a process called reconciliation, which allows Democrats, who have a majority in both houses of Congress, to vote to pass Biden’s new coronavirus stimulus package without Republican votes. Reconciliation is a way for Congress to enact legislation on taxes, spending, and the debt limit with only a majority (51 votes, or 50 if the vice president breaks a tie) in the Senate, avoiding the threat of a filibuster, which requires 60 votes to overcome. Because Democrats have 50 seats in the Senate—plus a Democratic vice president—reconciliation is a way to get a tax-and-spending bill to the president’s desk even if all 50 Republicans oppose it.

Throughout this week, committees in Congress are set to work out the details for President Biden’s new stimulus package. This bill is expected to include another round of $1,400 stimulus checks, money for state and local government, vaccine efforts, and an extension of federal unemployment benefits beyond their current March deadline. In a note to clients, Goldman Sachs (GS) increased their 2021 and 2022 gross domestic product (GDP) estimates for the US by 6.8% and 4.5% respectively if the stimulus bill is passed in the short-term. Treasury Secretary Janet Yellen has also supported the idea of additional stimulus.

Federal Reserve Chair Jerome Powell painted a dour picture on the state of U.S. employment, saying continued aggressive policy support is needed to support the pandemic-stricken labor market. Powell said, “We are still very far from a strong labor market whose benefits are broadly shared. The pandemic has led to the largest 12-month decline in labor force participation since at least 1948.” and “We will not tighten monetary policy solely in response to a strong labor market”, underscoring the fact that the Fed won't look to raise interest rates until all sectors of the labor market have recovered.


* Despite broader market weakness, Viant Tech (DSP) performed remarkably well in their first trading day, rising nearly 100%.
* Twitter (TWTR) finance chief said the social-media company has thought about how it might use the popular cryptocurrency Bitcoin (BTC) but said the company hasn’t made a decision. Jack Dorsey, who leads both Twitter and Square (SQ) is a bitcoin advocate and bought $50 million worth of Bitcoin for Square’s treasury.
* Twitter outperformed the market after reporting better-than-expected earnings
* The Wall Street Journal reports that the US’s plan to force the sale of tiktok has been shelved “indefinitely”. Earlier, there were reports that Oracle (ORCL) and/or Walmart (WMT) were involved in the deal
* Baidu (BIDU) target raised by Barclays from $190 to $350 at Overweight. Stock currently around $320.
* Adient (ADNT) target raised by Credit SUisse from $44 to $54 at Outperform. Stock currently around $37
* Canopy Growth (CGC) target raised by Cantor Fitzgerald from $50 to $62. Stock currently around $56
* Chegg (CHGG) target raised by Citigroup (C) from $100 to $120 at Buy. Stock currently around $103
* After a positive earnings report, Corsair (CRSR) with a host of target raises. Consensus target around $50 at Outperform. Stock currently around $43.50
* First Solar (FSLR) target raised by JMP Securities from $135 to $141 at Outperform. Stock currently around $104
* LYFT with a host of target raises. Consensus price target is $75 at Buy. Stock currently at $58
* One Main (OMF) target raised by Barclays from $63 to $69 at Overweight. Stock currently around $56
* Twilio (TWLO) target raised by Wells Fargo from $375 to $450 at Overweight. Stock currently around $425

“An investment in knowledge pays the best dividend” - Benjamin Franklin


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