Stocks were mostly higher Monday as investors weighed the uncertain fallout of the forced liquidation of positions held by U.S.-based hedge fund Archegos Capital.
TheStreet’s Katherine Ross and Jim Cramer discussed breaking news in the stock market. Cramer spoke about the impact of hedge fund Archegos Capital defaulting on margin calls, the Suez Canal situation, and markets on Monday.
ViacomCBS: Buy or Sell?
U.S.-based hedge fund Archegos Capital defaulted on margin calls this past week. Shares of ViacomCBS (VIACA) – Get Report slumped Monday morning amid forced liquidation of positions reportedly linked to Bill Hwang’s hedge fund Archegos Capital Management.
ViacomCBS was included in TheStreet’s buy-the-dip-candidates Monday after Discovery and ViacomCBS plummeted in the past week of trading after the hedge fund sell-off by Archegos Capital.
Cramer said brokers need to put out a note to their shareholders as Goldman Sachs did.
The cargo ship named Ever Given that was stuck in Egypt’s Suez Canal was finally set free on Monday raising hopes that traffic could soon resume on one of the world’s most important waterways for trade.
Cramer said that whoever has got freight is going to end up paying more. “I know there are outlets that have been able to defy that like Williams Sonoma (WSM) – Get Report because it has been able to handle the port situation. But many companies have not been able to.”
Markets on Monday
The Dow moving higher Monday afternoon as Wall Street weighs the uncertain fallout of the forced liquidation of positions held by U.S.-based hedge fund Archegos Capital.