Stocks Struggle as Earnings Season Pressure Builds

The tech-heavy Nasdaq fell from fresh intraday highs

Digital Content Manager
Jan 25, 2021 at 12:39 PM
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Stocks are kicking off the final week of January on a volatile note, as pressure builds in the midst of a packed earnings week, loaded with reports from several major tech and blue-chip names. The Dow Jones Industrial Average (DJI) was last seen down roughly 200 points, while the Nasdaq Composite (IXIC) fell from an intraday high and is now eyeing substantial losses. The S&P 500 Index (SPX) also gave back its earlier gains, plunging deep into the red as energy and financial stocks struggle. Elsewhere, investors are monitoring the uptick of coronavirus cases across the globe, though some analysts are predicting a return to growth later into 2021.

Continue reading for more on today's market, including:

  • This Big Tech giant is scoring fresh highs ahead of earnings.
  • Merck stock sinks after abandoning COVID-19 vaccine plans.
  • Plus, options bulls blast struggling movie theater stock; GME surges even higher despite bear note; and Renesola stock plummets on registered direct offering.

MMC 0125

One stock seeing notable options activity today is AMC Entertainment Holdings Inc (NYSE:AMC), last seen up 22.5% to trade at $4.30. The pop came after CEO Adam Aron laid bankruptcy rumors to rest, noting that the company raised an additional $917 million in the past six weeks, including $506 million in equity from the issuance of 164.7 million new common shares. So far, 661,000 calls and 148,000 puts have already crossed the tape, which is eight times the intraday average amount. Most popular is the weekly 1/29 7-strike call, followed by the 5-strike call in the same series, with new positions being opened at both. The equity has had a volatile run on the charts, rallying above the $7 level in November before dropping to a Jan.5 all-time low of $1.92. Year-to-date, AMC has added 110.8%.

Surging on the New York Stock Exchange (NYSE) today is GameStop Corp. (NYSE:GME), up 87.2% for a new record of $121.71 at last check, despite receiving a double downgrade from Telsey to "underperform" from "outperform." The analyst in question noted the equity's unsustainable share prices and valuation levels, adding that today's pop was likely caused by a short squeeze. As it stands, the 71.20 million shares sold short make up 69.6% of the GME's available float. The security has been making headlines since making changes to its board, and earlier today experienced a volatility halt. Nonetheless, shares are receiving support from the 10-day moving average, and in the last six months GME has added an astounding 1,859%.

Near the bottom of the NYSE today is ReneSola Ltd. (NYSE: SOL), last seen down 21% to trade at $26.49. The massive bear gap came after the energy company said it entered into securities purchase agreements with multiple investors for the purchase of 10 million American Depositary Shares (ADSs), at a purchase price of $25 per ADS, for a $250 million registered direct offering. The security just hit a Jan. 22, nine-year high of $35.77, and the 10-day moving average seems poised to contain today's dramatic pullback. Longer term, SOL remains up an impressive 1,907.5% year-over-year.

SOL 10 Day

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