AMC Entertainment goes for gold with its latest investment
The S&P 500 gained more than 4% last week, its best weekly performance since November 2020.
On Wednesday, the Federal Reserve announced that it was raising its federal funds interest rate target from 0.25% to a new range of between 0.25% and 0.5%. The Fed is now planning six more rate hikes before the end of 2022 as it tries to fight inflation.
Shares of Chinese tech stocks Alibaba and Tencent both gained more than 20% on Wednesday after China’s government-backed Xinhua news agency reported that authorities planned to provide more support to the Chinese economy, including its critical real estate sector. In addition, the outlet reported that progress has been made on a plan for cooperation between US and Chinese regulators on the way forward for US-listed Chinese stocks.
On Friday, Russia’s Finance Ministry said Russia had made $117 million in critical interest payments and apparently avoided a historic default. The debt payment reports came just a day after credit rating agency S&P downgraded Russia’s sovereign credit ratings in foreign and local currencies from “CCC” to “CC” and said that Russia was “very vulnerable to non-payment”.
On Tuesday, movie company AMC Entertainment announced a baffling $27.9 million investment to take a 22% stake in Nevada-based gold and silver mining company Hycroft Mining. Last year, AMC shares soared from under $2 to $72 amid the so-called “meme” stock trading frenzy that began with Reddit’s WallStreetBets community.
Shares of Signet Jewelers jumped more than 18% the week after the diamond seller’s fiscal 2023 forecast of between $8.03 billion and $8.25 billion in sales far exceeded estimates consensus of analysts.
In the coming week, investors will receive more quarterly earnings reports from Pinduoduo and Nike on Monday, Adobe on Tuesday and NIO on Thursday.
At least 356 S&P 500 companies mentioned “inflation” in their fourth-quarter earnings calls, according to FactSet.
Following the Federal Reserve’s interest rate hike, Wall Street will receive more economic updates on Monday when the People’s Bank of China announces its latest interest rate decision and on Wednesday when Fed Chairman, Jerome Powell, will speak at the Bank for International Settlements (BIS) Innovation Summit.
Benzinga is a financial information and data company headquartered in Detroit.