GameStop Overlooks Stock Rally in First Public Comments Since Shares Went Parabolic

Connor Smith
·3 min read

The stock was down more than 60% Thursday after Robinhood and Interactive Brokers blocked and restricted trading in GameStop and other soaring names.

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  • British Airways Parent Sees Some Hope After $9 Billion Loss

    (Bloomberg) -- British Airways parent IAG SA said there are grounds for optimism about air travel this summer, after posting its first annual loss in almost a decade.The airline group reported an operating loss of 7.43 billion euros ($9 billion) in 2020, according to a statement Friday. While Chief Executive Officer Luis Gallego expressed growing confidence that a recovery will take shape, IAG said it can’t provide an outlook for the current year as the coronavirus pandemic continues to batter air travel.Carriers specializing in long-haul routes have suffered the worst of the downturn, with the International Air Transport Association predicting some inter-continental markets could take years to revive. Airlines such as London-based IAG are counting on so-called Covid passports to help spur a quicker rebound as vaccine rollouts accelerate in countries including the U.K.“We have seen a big increase in flight and holiday bookings for the summer following the U.K. government announcement,” Gallego said on a media call. “Vaccination development, international common standards and digital health passes will be key.”Shares of IAG traded 3.1% higher as of 3:16 p.m. in London, taking gains this year to 20% after they lost almost two-thirds of their value in 2020.IAG’s operating loss included exceptional charges of 3 billion euros against plane retirements, restructuring and fuel-hedging measures.The company has had to cut jobs, borrow money and sell stock to stay afloat, with BA particularly hard because of its reliance on a trans-Atlantic market that’s still virtually closed.Comeback PlanThe carrier group had 10.3 billion euros in liquidity at the start of 2021, it said in a presentation. IAG won’t need any additional funding and will be focused on how to capture demand as it returns, Chief Financial Officer Steve Gunning said.“If there is a strong summer, and there is increasing confidence of that, it’s a case of how quickly you can ramp up capacity and introduce additional seats,” Gunning said on the call.While countries work on plans to restore flights, short-haul specialists such as EasyJet Plc are expecting a quicker rebound as the U.K.’s inoculation program helps lift leisure bookings.“A question mark still hangs over when it will be practical for British nationals to take foreign holidays again,” said Jack Winchester, an analyst at Third Bridge Ltd. “This is holding back a dam of pent up demand, and IAG will be desperate to see that unleashed.”Norwegian AirNorwegian Air Shuttle ASA separately reported a full-year loss of 23 billion kroner ($2.7 billion). The carrier said it had recognized impairment losses of 12.8 billion kroner on the terminated aircraft purchase contracts, which drove up the loss. The Scandinavian carrier is restructuring under an examinership process in an Irish court and will offer a detailed plan next week. Bankrupt Norwegian Air Near Deal to End Airbus Jet DeliveriesNorwegian Air has said it plans to raise new funding in late March or early April, and focus on regional flights with smaller aircraft. The carrier has turned away from the low-cost, long-haul business that put price pressure on major carriers like British Airways, which counds on North America for about 30% of its capacity.IAG attempted to purchase Norwegian Air in 2018 but dropped the plan after its bids were rejected and losses mounted at the smaller company.(Updates with details of Norwegian impairment on jet purchase cancellation in 12th paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Lockdown Boosted Savings, But BOE Doubts Much More Will Be Spent

    (Bloomberg) -- Bank of England policy makers are sounding a note of caution about how much excess savings built up during Covid-19 lockdowns will be spent once the economy reopens.The central bank’s Chief Economist Andy Haldane has estimated that as much as 250 billion pounds ($352 billion) will accumulate in the accounts of consumers who were unable to go on holiday, shop or eat out as much as usual. The pace of the recovery depends on whether they spend it or hold onto the savings.While the bank’s official forecast is for 5% of that money to reappear, Deputy Governor Ben Broadbent told lawmakers Wednesday that the demographics of those with the biggest deposits point away from a splurge. The richest households built up the most cash and are least likely to spend, while the poorest were hit hardest by restrictions that closed their workplaces.“A lot of these savings are in the form of liquid assets or deposits, so maybe they could be spent more quickly, but equally they are skewed toward people who are better off -- the old -- who already have savings and are maybe less inclined than the average person to spend out of accumulated assets,” Broadbent said. “The skew itself is noticeable and in and of itself would tend to make you want to aim for a slightly lower number.”His stance was backed by fellow policy maker Jonathan Haskel, who cited the central bank’s latest biannual household survey with NMG Consulting. It found that 70% of people plan to continue to hold excess savings in their bank accounts instead of spending them.What Bloomberg Economics Says...“Given the amount of fuel available and the experience over the summer last year when restrictions were eased and spending picked up rapidly, our view is there’s a bigger risk of consumer spending rebounding faster than we expect once the economy is reopened.”-- Dan Hanson, senior economist. Read his full INSIGHT here.Haldane has presented a more upbeat view in recent weeks. He termed the central bank’s 5% assumption “conservative” in an opinion piece for the Daily Mail newspaper earlier this month and said he sees potential for “much more, perhaps even most of this savings pool to leak into the economy, fueling a faster recovery.”“A year from now, annual growth could be in the double digits,” he wrote. “The economy is poised like a coiled spring.”One thing much of the rate setting committee can agree on is the outsize effect a small change in consumers’ behavior could have on the U.K.’s path out of the crisis. Gertjan Vlieghe explained his own uncertainty in a speech last week:“Given that we have never experienced an economic situation quite like the one we are now in, a wide range of outcomes are possible,” Vlieghe said. “Given the scale of the amounts involved, even small changes in the assumed propensity to spend out of these accumulated savings lead to large changes in the expected out-turns for consumption and the economy as a whole.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Vauxhall: Talks over fate of Ellesmere Port plant 'productive'

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  • Robocallers have gotten out of control — here's how you can stop them

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  • After the upcoming third stimulus check, will you get a fourth?

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  • Boeing 777 makes emergency landing in Moscow: Reports

    Russian media reported that a Boeing 777 plane made an emergency landing in Moscow in the early hours of Friday after the pilot reported a problem with the engine. The Interfax news agency cited an anonymous source saying that the pilot on the flight from Hong Kong to Madrid reported a failure of one of the left engine control channels and requested an emergency landing at the Moscow Sheremetyevo airport. Hong Kong's Civil Aviation Department identified the plane as a B777-300ER operated by Russia's state-funded Rossiya Airlines for cargo service.

  • ‘She is a financial idiot and partier’: I loaned my sister $4,780 for a lawyer during her divorce. I am still chasing her to repay me

    ‘She earns $90,000 to $95,000 a year, but this year’s excuse is that she is in arrears for child-support payments.’

  • What's the timing on your next stimulus check, once the House approves it?

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  • Americans can’t file their income taxes fast enough — but they should brace for some unwelcome news in their 2020 returns

    As of Feb. 19, only 8 full days into the 2021 filing season, the IRS received 34.69 million individual returns.

  • Column: McConnell says there's no need for more state and local aid. Don't believe him

    Senate Minority Leader Mitch McConnell is still throwing sand in the gears of good government. The result risks bankrupt states and localities.

  • Rep. Young Kim: 'I'm the future of the Republican Party'

    The NEXT: 21 to watch in 2021 —Representative Young Kim talks to Yahoo Finance about her goal of finding common ground and the future of the GOP.

  • Here’s How Much Jennifer Aniston and Other Actors Get Paid for Their Reruns

    For TV’s biggest stars, key roles on successful shows mean huge paychecks — but the payoff doesn’t stop there. When shows are syndicated, redistributed, released on DVD, purchased by...

  • Uncertainty Could Continue To Weigh On Clover Health

    Prolific SPAC (special purpose acquisition company) sponsor Chamath Palihapitiya has struck success with most of his blank-check companies, but not with Clover Health Investments (CLOV). Palihapitiya’s Social Capital Hedosophia III completed its merger with the Medicare Advantage plan provider back in January. Following the deal, shares in the newly named Clover pulled back from highs set last year. However, the downward pressure has been amplified by a short report issued by Hindenburg Research earlier this month. With the report accusing the company of failing to disclose an ongoing inquiry by the U.S. Department of Justice (DOJ), investors have been more cautious about taking positions in what (until recently) was seen as a great growth story in the healthcare sector. Clover has fought back against these allegations, but so far, this has yet to help the stock move back in the right direction. As valuation remains high and investors are still concerned about the DOJ inquiry, it may be a while before shares start to rebound. What Hindenburg’s Short Report Means For CLOV Stock On Feb 4, vocal short-seller Hindenburg Research released a detailed report pointing out many issues with Clover Health Investments. The biggest bombshell is the allegation that it failed to disclose an active inquiry by the DOJ for several of its aggressive business practices. These include payments to providers, as well as its patient recruitment efforts. Clover quickly responded with a lengthy rebuttal published on Medium.com. Downplaying the severity of the inquiry, the company also fought back against the allegations made about its business practices. Yet, while its rebuttal provides some answers to the questions raised by the short report, it has failed to reverse the recent declines. CLOV shares have continued to trend lower, and now trade for around $9.71 per share. Buying The Dip Versus Waiting Things Out Investors might not be assuaged by Clover’s response to the short report. That said, it’s possible that this turns out to be only a short-term issue. As time passes, shares could rebound as investors become more confident in its prospects. With this in mind, buying now, as shares trade near their initial offering price, could prove to be a shrewd investment in hindsight. However, beyond the overhang of the DOJ inquiry, valuation is another concern with CLOV stock. Trading at 6.7x trailing twelve-month sales, shares are still richly priced even when you take into account its projected sales growth. In short, even with the short report weighing down shares, there isn’t much of an uncertainty discount with Clover. As the possibility of future gains is limited, it may not be worth it to dive in at today’s prices. What Analysts Are Saying About CLOV Stock According to TipRanks, Clover has a Moderate Buy consensus rating based on 1 Buy and 1 Hold. In terms of price targets, the average analyst price target on CLOV stock comes in at $17 per share, implying 75% upside potential from today’s prices. (See Clover stock analysis on TipRanks) Bottom Line: Shares May Hold Steady Near-Term Based on the information provided in its rebuttal, the allegations made about Clover by Hindenburg may have been overstated. Yet, with the stock still richly priced at today’s levels, investors should continue to be cautious about diving back into this SPAC healthcare play. What does this mean? Unless it releases some game-changing news anytime soon, expect CLOV stock to remain depressed in the near-term. Disclosure: Thomas Niel held no position in any of the stocks mentioned in this article at the time of publication. Disclaimer: The information contained herein is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities.

  • Biggest Bitcoin Fund Sinks to Record Discount as Mania Cools

    (Bloomberg) -- The world’s largest Bitcoin fund is selling off faster than the cryptocurrency itself as investors rush to the exits.The $31.6 billion Grayscale Bitcoin Trust (ticker GBTC) plunged 22% this week, outpacing a 17% decline in the world’s largest cryptocurrency. That’s evaporated GBTC’s once-massive premium to the Bitcoin it holds, with the price of GBTC closing 3.8% below the value of its underlying holdings on Thursday -- a record discount, according to data compiled by Bloomberg.It’s an unusual situation for GBTC, which has persistently traded at a premium to its net asset value since the fund’s launch in 2013. That figure soared to 40% in late 2020, with investors willing to pay a markup for exposure to Bitcoin‘s dizzying rally. That avalanche of inflows swelled the number of GBTC shares outstanding to a record 692 million. However, GBTC doesn’t allow redemptions -- meaning that shares can only be created, but not destroyed. With Bitcoin’s climb now stalling, that’s created a supply and demand imbalance as participants in the trust seek to find buyers in the secondary market.“It’s more indicative of the fact that there are so many shares are available, and it indicates demand for Bitcoin at these prices is falling off,” said Bloomberg Intelligence analyst James Seyffart.Bitcoin surged to a record of over $58,000 last weekend, but has stumbled since. The cryptocurrency slipped another 0.2% on Friday, on track for its worst weekly pullback in a year. The wider Bloomberg Galaxy Crypto Index, tracking Bitcoin, Ether and three other cryptocurrencies, is down 19.7% this week.Bitcoin’s lurch lower is part of a broader risk asset stumble, as spiking Treasury yields rattle the market’s more speculative fringes. High-flying tech stocks have been hammered as investors reassess lofty valuations, with the Nasdaq 100 on track for its worst week since March.Among those hit the hardest is Cathie Wood’s lineup of Ark Investment Management ETFs. The flagship ARK Innovation ETF is on track for a fifth consecutive day of declines, and is poised to erase its year-to-date gains after a nearly 150% surge in 2020. Ark Investment is the fourth-largest holder in GBTC.Michael Sonnenshein, chief executive officer of Grayscale Investments, acknowledged the risk of GBTC’s premium disappearing while speaking in a panel for the Bloomberg Crypto Summit on Thursday.“It’s certainly a risk, no question about it, but ultimately price discovery in GBTC every day is driven entirely by market forces,” Sonnenshein said.A host of new entrants could also be challenging GBTC’s command of the competitive landscape. The Bitwise 10 Crypto Index Fund, the Osprey Bitcoin Trust and the SkyBridge Bitcoin Fund LP have all launched within the past three months. Meanwhile, two Bitcoin ETFs -- a structure yet to be approved by U.S. regulators -- began trading this month in Canada.“Since the beginning of the year, we’ve seen the launch of multiple competing products,” said Nate Geraci, president of the ETF Store, an advisory firm. “The unpleasant truth for GBTC investors is that competition erodes demand for the product, which can lead to a collapsing premium or even a discount.”(Updates prices throughout.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • Toyota develops fuel cell system to cut carbon footprint

    Toyota Motor Corp said on Friday it has developed a packaged fuel cell system module, as it hopes to expand its usage and accessibility of the zero-emission technology amid the industry's shift towards electric vehicles (EVs). The world's biggest automaker, which launched a revamped Mirai in December, has not been successful in winning drivers over to fuel cell vehicles (FCV). The FCV segment remains a niche technology despite Japanese government backing, amid concerns about lack of fuelling stations, resale values and the risk of hydrogen explosions.

  • 2 Pot Stocks That Can Easily Double in 2021

    After the November election, 36 U.S. states have now legalized medical marijuana and 15 allow recreational marijuana. Innovative Industrial owns 67 properties across 17 states, with 5.8 million square feet of rentable property.

  • Cathie Wood’s Main ETF Fluctuates After $4.9 Billion Asset Drop

    (Bloomberg) -- Ark Investment Management’s miserable week showed signs of easing on Friday, as its flagship exchange-traded fund battled to avoid a fifth day of declines.The ARK Innovation ETF (ticker ARKK) fluctuated as of 11 a.m. in New York, after earlier sliding as much as 2.7%. The fund has tumbled more than 15% this week amid a technology selloff that was triggered by rising Treasury yields, putting pressure on high-flying stocks. One of those shares is electric-car maker Tesla Inc., which remains as the ETF’s biggest holding.The last time Ark founder Cathie Wood suffered a run this bad was almost a year ago, during the worst of the Covid-fueled mayhem. Her main fund is now 11 times larger than it was then. It got close to erasing its gains for 2021 this week after soaring as much as 26% since the end of December.Assets in the ETF have slumped by $4.9 billion this week to $23.3 billion, according to data compiled by Bloomberg. The figure doesn’t include flows from Thursday, when ARKK dropped 6.4% for its worst day in almost six months. Investors pulled about $200 million from the fund in Wednesday trading. That brings total weekly outflows to $638 million, on pace to be the worst on record.“Money that is ‘easy come’ tends to be money that is ‘easy go’,” said Ben Johnson, Morningstar’s global director of ETF research. “You’re going to see similar, if not potentially greater, market impact on the way down, especially given that this is an actively managed ETF and a fully transparent one. The market is hanging on their every move, they’re watching their every move.”Bearish bets against the ETF continue to grow, with short interest now accounting for more than 4% of available shares, according to data from IHS Markit Ltd.Michael Purves, chief executive officer at Tallbacken Capital Advisors, said in a note Thursday that his firm is taking profits on ARKK puts, but “will look to re-enter a second bearish trade on a bounce.”Ark Investment slipped to the eighth place among the largest exchange-traded fund issuers in the $5.9 trillion industry, after becoming the seventh biggest earlier this month. Total ETF assets for the company are now just shy of $53 billion, down from more than $60 billion at the prior peak.Wood’s $10.6 billion ARK Genomic Revolution ETF (ARKG) is now flat for the year and lost $154 million on Wednesday for its third straight day of outflows. At the same time, traders pulled another $48 million from ARK Next Generation Internet ETF (ARKW).For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • GameStop Can Justify Its Valuation By Turning Into A '5,000-Store Introduction To Crypto,' Says Cramer

    CNBC host Jim Cramer said Thursday that GameStop Corporation (NYSE: GME) could justify its share price by turning into a cryptocurrency play. What Happened: The “Mad Money” host made references to other companies like Paypal Holdings Inc (NASDAQ: PYPL) and Nvidia Corporation (NASDAQ: NVDA), both of which are linked in some way or the other to cryptocurrency at the present. “If GameStop were to turn itself into a 5,000-store introduction to crypto, make it so that they sell $1 billion worth of stock ... and buy crypto with it, and then make it so it’s an international gaming place where you win bitcoin, I think you can justify the stock price,” theorized Cramer. “I have not been able to come up with anything else, but this works. And it doesn’t have to be bitcoin. We can make it crypto.” See also: How‌ ‌to‌ ‌Buy‌ ‌GameStop‌ ‌(GME)‌ ‌Stock‌ Cramer said if GameStop turns itself into a “crypto information place” and has worldwide games with no latency it would add to the credibility of GameStop investor and Chewy Inc. (NYSE: CHWY) co-founder Ryan Cohen. The former hedge fund manager also pointed to the upcoming resignation of GameStop CFO Jim Bell and said, “CFOs, they tend not to have bitcoin on their balance sheet. Perhaps Jim Bell, that’s what he didn’t want.” Cramer called Cohen a “big thinker” and said “I have a feeling that this is the way to get this stock higher. I can’t come up with another way.” Why It Matters: GameStop, AMC Entertainment Holdings Inc (NYSE: AMC), BlackBerry Ltd (NYSE: BB), and Nokia Oyj (NYSE: NOK) shares were buoyed in a short squeeze carried out by Reddit forum r/WallStreetBets. A notable poster on the forum — “Deep F---ing Value” — who has been credited by forum members for pointing out the short squeeze opportunity told U.S. lawmakers that he likes GameStop stock. “As far as I can tell, the market remains oblivious to GameStop’s unique opportunity within the gaming industry,” said the poster whose real name is Keith Partick Gill. On Wednesday, Cramer called the over 103% rise in the shares of GameStop “a mockery,” and questioned, “Where is the government?” Alma Angotti, a former Securities and Exchange Commission enforcement attorney said that heightened interest from regulatory bodies could be expected. “I think both Congress and the SEC will be studying that balance between orderly markets and letting people invest what they want to invest for whatever reasons they want to invest even if it doesn’t make sense to us,” CNBC reported. Price Action: GameStop shares closed nearly 18.6% higher at $108.73 on Thursday and fell 2.51% to $106 in the after-hours session. For news coverage in Italian or Spanish, check out Benzinga Italia and Benzinga España. Photo courtesy: EPIC via Wikimedia See more from BenzingaClick here for options trades from BenzingaTesla Stock Performance And WallStreetBets Mentions Have A 'Real' Connection: BarclaysWhy AMC Shares Spiked 20% Today© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • House Set to Pass Stimulus as Minimum-Wage Hike Dealt Blow

    (Bloomberg) -- The House is poised to pass President Joe Biden’s $1.9 trillion Covid-19 stimulus, but a ruling by late Thursday by a Senate official dealt a major blow to prospects that the final legislation will include a hike in the U.S. minimum wage to $15 per hour.Friday’s vote in the House will bring most Americans one step closer to receiving $1,400 relief payments and move action to the Senate, where disagreements among Democrats over the minimum wage had been the biggest obstacle to turning the pandemic relief plan into law.However, Senate parliamentarian Elizabeth MacDonough found that the wage provision did not qualify for action under budget reconciliation, a fast-track procedure that would let Democrats pass the stimulus with only 50 votes in the evenly divided Senate.Democrats don’t yet have a unified approach for dealing with the minimum wage decision. While Biden called on Congress to “quickly” pass the relief bill, progressives are urging Democrats to overrule the parliamentarian or wage a battle over tax penalties to force higher wages. That raises the potential for disputes that delay Senate passage of the broader stimulus package.The $15 minimum wage had been a rallying point for progressive Democrats, and Senate Budget Chair Bernie Sanders immediately proposed a work-around to raise pay for low-level workers.“I will be working with my colleagues in the Senate to move forward with an amendment to take tax deductions away from large, profitable corporations that don’t pay workers at least $15 an hour and to provide small businesses with the incentives they need to raise wages,” Sanders said in a statement. “That amendment must be included in this reconciliation bill.”Senate Finance Chair Ron Wyden also endorsed the idea of a tax penalty for large corporation “that refuse to pay a living wage.”There may be prospects for bipartisan talks on a standalone measure. On Friday, Republican Senator Josh Hawley of Missouri proposed requiring companies with at least $1 billion in revenue to pay employees $15 an hour.White House economic adviser Brian Deese said Friday on MSNBC that the administration will “talk this morning and in coming days” with congressional leaders to “figure out the best way” to proceed with a minimum-wage hike while at the same time making progress on the aid bill.Using tax incentives may address a main complaint from opponents of raising the minimum wage to $15 an hour: That it would be onerous for small businesses. It also may be a way to appeal to two Senate Democrats, West Virginia’s Joe Manchin and Arizona’s Kyrsten Sinema, who’ve expressed opposition to elevating the wage floor that high nationally and whose votes are needed to pass the legislation in the face of unified Republican opposition. Potential for CompromiseManchin has backed an $11 an hour minimum, phased in over two years, and then indexed to inflation. He said on Thursday before the Senate parliamentarian ruled that a compromise might be found. “There are a lot of things we can do,” he said.Faced with the influence that moderates like Manchin wield in the 50-50 Senate, progressives have said they’re prepared to use their own leverage in the House, where Speaker Nancy Pelosi can only afford to lose five votes and still pass bills if all Republicans stick together in opposition.“We can’t just roll over and allow a tiny group -- maybe two members of the Senate on the Democratic side -- to drag all Democratic policies, including Biden’s policies, to the right,” said Representative Alexandria Ocasio-Cortez of New York.Without a tax maneuver, Democrats would likely have to try to pass the wage increase through the ordinary legislative process, which would require the votes of 10 Republicans to reach the threshold of 60 to cut off debate. The parliamentarian’s ruling can be overturned by 51 votes, but Manchin already has said he wouldn’t supply the key vote to do so.While Vice President Kamala Harris, in her role as president of the Senate, could attempt to overrule the parliamentarian, White House Chief of Staff Ron Klain and Press Secretary Jen Psaki have both said that they do not expect her to do that. She would still need enough senators to agree with her, which appears unlikely.Biden, a 36-year veteran of the Senate, recognized that the minimum wage might not qualify under the chamber’s rules, and earlier this month urged that a standalone bill be sent to him in that case. In a statement Thursday night, Psaki said the president respects the Senate process and that he “will work with leaders in Congress to determine the best path forward because no one in this country should work full time and live in poverty.”Senate Majority Leader Chuck Schumer said he was “deeply disappointed” with the parliamentarian’s decision.“We are not going to give up the fight to raise the minimum wage to $15 to help millions of struggling American workers and their families,” he said in a statement. “The American people deserve it, and we are committed to making it a reality.”The parliamentarian’s decision is likely to rekindle pressure from progressives in both chambers for Senate Democrats to jettison the filibuster rule, which requires 60 votes to pass most legislation.With the House set to vote on Friday, Democrats plan to get the pandemic relief bill through the Senate and to Biden’s desk by March 14, when expanded pandemic unemployment benefits begin to expire. The legislation would extend those through August, and bolster state benefits to $400 per week, up from the $300 per week currently.The bill also provides money for Covid vaccines, testing and care along with funds for schools, a temporary expansion of the child tax credit, and temporary health care premium subsidies among other items.House and Senate Republicans are expected to be united in opposition, arguing that it is too costly and insufficiently targeted. They have especially criticized the $350 billion in aid to state and local governments on the grounds that their finances on the whole haven’t been very hard hit during the pandemic.“This bill is actually too costly, too corrupt and too liberal -- less than 9% of this bill goes to defeating this virus,” House Minority Leader Kevin McCarthy told Fox News on Thursday.(Updates with GOP senator’s proposal in eighth paragraph.)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.

  • GameStop Options Bet That the Stock Will Reach $800 on Friday

    (Bloomberg) -- Shares of GameStop Corp. doubled yesterday and jumped another 19% today. Options traders think the stock can do much better than that.The most-active option traded on the stock Thursday was a contract betting that GameStop shares would spike to $800 on Friday. Some 52,000 contracts changed hands during the session betting on this one-day gain of 636%For other options traders, it was a question of when GameStop would hit the $800 mark, not if. The seventh and eighth most-active contracts were call options wagering that the stock would reach $800 by next Friday or in three weeks. It’s hard to say whether the contracts were mainly bought or sold, two traders said.“It’s speculation gone wild, pure and simple,” said Steve Sosnick, chief strategist at Interactive Brokers LLC. “It is Exhibit A in the nuttiness that is associated with GameStop.”GameStop’s Reddit-driven roller-coaster ride that roiled markets last month is continuing this week, with shares more than doubling in the final 90 minutes of trading on Wednesday and rising as much as 101% on an intraday level on Tuesday. The rally came as popular tech names from Tesla Inc. to Zoom Video Communications Inc. were battered after U.S. 10-year Treasury yields spiked to 1.6%.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.