Oil producers Exxon Mobil and Chevron discussed a merger last year, according to The Wall Street Journal.
Global stocks bounced back on Monday, with broader markets willing to take on risk as the speculative retail fervor sent silver to an eight-year high. Shortly after the open, the
Dow Jones Industrial Average
rose 191 points, or 0.6%, while the
gained 0.9%, and the
was up 1.2%.
gained 1.6% in Tokyo, the
rose 2.2% in Hong Kong, and the
rallied 2.7% in Seoul. The Stoxx Europe 600 rose 1.4%, after falling more than 3% last week.
The big story in markets—overwhelming discussion of a so-far solid earnings season, the rollout of Covid-19 vaccines and the current state of the coronavirus crisis—has been the surge in retail interest in stocks including videogame retailer
(ticker: GME) and cinema-theater chain
(AMC). “The passions being aroused by these events are also causing significant concerns about the wider implications about other areas of the market that might be overleveraged, as the big unsustainable gains in these vulnerable stocks causes de-risking in other areas of the market,” said Michael Hewson, chief market analyst at CMC Markets UK. Popular broker Robinhood relaxed restrictions on trading, though traders on that platform are only allowed to buy a single share of GameStop. The retail crowd turned to
which jumped to an eight-year high in electronic trade. European-listed miners including Fresnillo and
climbed as a result. On the political front, Senate Republicans sent a letter to President Joe Biden of their interest in passing a slimmed-down coronavirus relief package. President Biden, who is seeking $1.9 trillion in stimulus, will meet with the group of lawmakers to discuss a possible bill. Consumers and corporations have already built up a mountain of cash, which could be unleashed upon once a large chunk of the population has received a vaccine. Another bill—which seems to be a bipartisan agenda—was expected by March. “The public money pouring into economies makes it hard for investors to go against the trend. The underlying path out of the current crisis remains largely intact, although it may take somewhat longer due to a still high level of infections and a slow vaccine rollout forcing many countries to maintain lockdowns,” said Lauri Hallika, a fixed income and currency strategist at SEB. The economics calendar includes the Institute for Supply Management’s manufacturing index for January. In other news,
(FSLR) was down 1% after getting cut to Neutral from Buy at UBS.
(CL) ticked up 1.1% after Credit Suisse upgraded the stock to Neutral from Underperform.
(EXPE) has risen 3.8% after Wedbush upgraded the stock to Outperform from Neutral.