A Santa Claus Rally? 🤔
Jun 7th 2023, 8:42 am
|The Street Brief
GameStop's revenues are declining
- As Wall Street equities declined more widely, gaming retailer GameStop $GME announced a decrease in revenues in its earnings yesterday. The company's attempts to increase digital sales seem to have failed, which hasn't been able to make up for steadily dropping physical sales in recent years.
Chinese reserves of gold increased for the first time in 3 years
- According to reports, China has increased its gold holdings for the first time in three years to diversify away from the US dollar. For the first time since September 2019, China's central bank revealed Tuesday that it had added 32 tonnes of the precious metal, valued at almost $1.8 billion, to its stockpile.
Photo by Jingming Pan on Unsplash
- Pentagon awards cloud contracts to $GOOG, $ORCL, $AMZN, and $MSFT, worth up to $9 billion in total.
- Natural Gas Increases: Yesterday's trading saw a spike in the price of natural gas as demand soared throughout the globe as a result of an increase in cold weather in Europe.
- Oil Falls: continued to decline, reaching $72 before briefly rising, and now trading at $72.9.
- Asian markets flat: At the time of writing, the HKG50 was up nearly 2.5%, the China50 was up 0.5%, and the JPN225 was down slightly.
- Top cryptocurrencies Increase: Major cryptocurrencies reported minor gains. At the time of writing, Bitcoin was trading just above $16,900.
A Santa Claus Rally is likely to happen if seasonal trends are anything to go by, as Q4 is typically the best quarter for stocks, and the post-midterm market effect is favorable. Since 1950, stocks have always increased in the year following midterm elections, with an average 12-month forward return of 18.6%.