Disappearing shorts: As stocks soar, skeptics surrender
As the stock market has surged to records, activity has dwindled to a nearly two-decade low for the traders known as short sellers, who make their money betting stocks will fall.
As the stock market has surged to records, activity has dwindled to a nearly two-decade low for the traders known as short sellers, who make their money betting stocks will fall.
The stock buyback offer, announced Thursday, applies to up to 2 million shares of Class A common stock at $2.60 per share, or more than $1 per share above the closing price of Emmis shares on Thursday.
Investors are increasingly worried about inflation as oil prices rise and companies continue facing supply problems that increase their costs and force them to raise prices.
After climbing steadily for much of the year, the stock market has become unsettled in recent weeks with the spread of the delta variant, surging long-term bond yields and word that the Federal Reserve may start to unwind its support for the economy.
The benchmark S&P 500 index had its worst drop since May, and the tech-heavy Nasdaq had its worst drop since March.
Worries about debt-engorged Chinese property developers—and the damage they could do to investors worldwide if they default—are rippling across markets.
Indianapolis-based shopping mall owner Simon Property Group was among the companies hit hard Monday, with its stock falling 5.9%, to $117.19 per share.
Optimism over the economy’s prospects as coronavirus restrictions continue to lift has sent the market to a series of record highs, including the third straight for the S&P 500.
Investors are still figuring all the ramifications of the Fed’s latest meeting on interest-rate policy, where it indicated it may start raising short-term rates by late 2023.
The Federal Reserve expects inflation will climb to 3.4% this year, higher than the central bank’s previous forecasts, and projected for the first time that there could be two interest rate hikes in 2023.
With inflation rising in a fast-rebounding economy, the Federal Reserve is poised this week to discuss when it will take its first steps toward dialing back its ultra-low interest rate policies. It will be a fraught discussion.
The S&P 500 notched a 1.2% gain, clawing back almost half of its loss from a day earlier, when it had its biggest one-day drop since February.
Janet Yellen’s comments reignited fears raised by some economists and business leaders that trillions of dollars in new spending that the government has authorized since March 2020 could lead the Federal Reserve to take steps that cool off the economy.
The S&P 500 and Dow Jones industrial average both reached record highs as the economy showed more signs that it’s continuing to recover.
Another climb in bond yields helped pull money out of Big Tech companies, which have started to look expensive after months of soaring through the pandemic.
The S&P 500, the Dow Jones industrial average and the Russell 2000 measure of small-company stocks all closed at record levels on Thursday.
Tech shares tumbled anew on Monday, sending the Nasdaq composite index down 11% from its all-time high, as investors fled high-valuation stocks for companies whose fortunes are closely tied to the economic cycle.
Investors were encouraged by a government report that U.S. employers picked up the pace of hiring last month.
The speed at which the yield on the 10-year Treasury has climbed has forced investors to re-examine how they value stocks, bonds and every other investment. And the immediate verdict has been to sell them at lower prices.
Stocks and bonds sold off on Thursday after Federal Reserve Chairman Jerome Powell underwhelmed markets by refraining from pushing back more forcefully against the recent spike in Treasury yields.