Wall Street just showed the Reddit crowd how to really make money
April 18, 2021. Summarized by summa-bot.
Compression ratio: 19.7%. 1 min read.
In this photo provided by the New York Stock Exchange, traders work on the floor, Thursday, April 15, 2021. U.S. stocks are rallying toward records on Thursday after a suite of encouraging data showed how hungry Americans are to spend again, how fewer workers are losing their jobs and how much fatter corporate profits are getting.(Courtney Crow/New York Stock Exchange via AP)
In the early weeks of 2021, amateur traders backing meme stocks like GameStop, AMC Entertainment and BlackBerry captured the world's attention.
Global hedge funds reporting data to Eurekahedge, a research group, saw returns of nearly 5% in the first quarter, roughly on par with the broader market.
Just as some nonprofessional traders got extremely wealthy off their risky GameStop positions, hedge funds that shorted popular names took huge hits.
Melvin Capital, which was a major GameStop short-seller, was down 49% during the first three months of the year, a source familiar with the matter told CNN Business.
Morgan Stanley (MS) made $5. 8 billion trading stocks and bonds, though its blockbuster quarter was dented by $911 million in losses related to the Archegos saga.
Johnson & Johnson's vaccine pause could slow the recovery
Economic turnaround hopes are strongly tied to the vaccine rollout around the globe — which means concerns about shots from Johnson & Johnson (JNJ) aren't good news for the recovery, my CNN Business colleague Chris Isidore reports.
The latest: Distribution of Johnson & Johnson's single-shot vaccine has been paused in the United States, the European Union and South Africa as US authorities probe a possible connection to extremely rare blood clots.