Market check: Stocks resume sell-off, meme stock traders lose gains

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Yahoo Finance’s Ines Ferré reports how markets opened on Monday and discusses a study that found amateur meme stock traders have lost gains.

Video Transcript

Let’s go over to Yahoo Finance Ines Ferre over at the YFi Interactive. Ines.

INES FERRE: And Brian, a continuation of the sell off that we saw last week, we are seeing the major averages lower. But I have the world map here so you can see that in other parts of the world, also, stock markets are in the red. You’ve got the London FTSE, the Frankfurt [? SAC, ?] also the Hong Kong Hang Seng down more than 3 1/2%. Chinese ADRs, today, are under pressure.

Let’s take a look at where we’re at with the NASDAQ composite. Out of the major averages, that’s losing the most, down more than 2% right now. I’ve got the 30-year Treasury that’s up right now at 3.24%. The 10-year is at 3.12%. And the US dollar index, not a lot of green, but the dollar index has been going higher. And this has been putting pressure on commodities so we are seeing WTI crude that’s down more than 2 1/2%. Remember that you still have lockdowns in China.

Gold futures are lower. Taking a look under the hood where we’re at with equities and the sector action, we are seeing XLE. This is the best performer year to date, but today, it is in the red. We are also looking at technology stocks, which are in the red, as well. And over on the NASDAQ 100, you can see Tesla down 4%, Nvidia down more than 3 1/2%. In fact, I’m going to put here a chart so you can see a year-to-date chart.

The NASDAQ 100 is down about 23% year to date, but these stocks are down to more than 20%. You’ve got Netflix down 70% year to date, OKTA down 58%, Peloton down 48%, PayPal down 57%, guys.

And if my quick count was correct, only 13 of those stocks are positive out of that 100 for this year.

That’s good, I like that.

Let’s talk about meme stocks for a moment. We haven’t talked about them in a while, Ines. And all of the retail traders who got into those stocks, I’m afraid to ask how they’re doing.

INES FERRE: Yeah, so Morgan Stanley came out with a note about this. And in fact, I want to pull up the meme chart so we can see here where we’re at with them. This is a year to date, but let’s put up on an intraday right now. So these are the meme stocks that are meme stocks or have been meme stocks in the past. You’ve got the flagship ones, which are GME and AMC. And Morgan Stanley came out with a note saying that basically the amateur investors that came in when the lockdown started, when you started to see the stimulus money, that those investors have, those day traders or traders, have lost basically their gains since they started trading.

So we are looking at year to date. I’m going to show you where we’re at with these meme stocks. But over the last six months, a lot of these stocks had reached their highs in 2021, and they are down significantly from those highs. And you can see AMC down 67% over the last six months, GME down 48%, still, though, above $100 a share. So GME has actually held up more than what some people would have thought. Palantir down 70% SPCE down 69% over the last six months.

Basically, the bottom line is that a lot of these amateur investors, when they started getting into the stock market, they didn’t really– they’ve never been through a Fed tightening cycles. So they saw the easy money, the Fed easy money, the pumping into of liquidity into the markets, and so they’re not used to now the tightening that’s coming.

All right, insert wow Shiba Inu meme right now. All right, Yahoo Finance’s own Ines Ferre, Thanks so much for breaking that all down, Ines.

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