Pre-market actions: The bull market has hit millions of day traders. They are in a difficult career – Reuters

“I see a stock rising and I buy it. And I watch it until it stops rising, and I sell it,” said the user known as Chad. “I do it over and over and it pays for our whole lifestyle.”

Yes, Chad has discovered momentum trading. And it seems to be working well for him. Like millions who entered day trading during the pandemic, Chad was in an exciting bull market delighted with the Federal Reserve’s super cheap money.

For starters, it’s hard to go wrong. Pick a stock, any stock, and watch it rise. Now, of course, the trip ends almost as fast as it started.

What’s Happening: To carry the “Game of Thrones” metaphor: The market is full of babies in the summer, and winter is definitely coming.

“It turns out that investing is pretty hard when the free money tap is turned off,” a user wrote on the WallStreetBets Reddit page last week, along with a bright screenshot of a page. of stock market data showing a sea of ​​red.

For traders who have only experienced the turmoil of the bull market, 2022 has been a difficult turning point. On the WallStreetBets page – the epicenter of the 2021 meme stock mania – the mood is less festive. The resounding shouts of “diamond hands” and “HODL” were replaced by prankster memes about the bottomless defeat.

Wall Street isn’t too happy either. On Friday, the S&P 500 fell into bearish territory but narrowly avoided closing there. The Dow Jones, meanwhile, posted its eighth consecutive weekly loss – its longest consecutive loss in nearly a century, reports my CNN Business colleague Matt Egan.

There are signs that the collapse is discouraging to retailers. Robinhood, the free trading app that has been an instrument of amateur investor growth over the past two years, dropped 10% to 15.9 million monthly active users in the first quarter of this year.

However, Wall Street has learned the hard way in building GameStop what can happen when you throw away Robinhood’s mob power. And for those who download the app looking for a little thrill during the dark season, now is the perfect time to stay, watch and learn.

“I think retail traders are here to stay,” Craig Erlam, senior market analyst at Oanda, told me. “It has never been so easy to trade in the financial markets … Some will stop, of course, but I think many will not. These are very interesting times in the markets, after all.

Davos Expedition

Here is Julia Horowitz, senior editor of Before the Bell, with a dispatch from Davos, Switzerland, where she reports to the World Economic Forum.

Hello from the Swiss Alps! It’s raining and hot here – definitely not time for skiing.

Politicians and business leaders exchanged snow boots and gloves for sneakers and umbrellas as they gathered for the first personal World Economic Forum since the Covid-19 pandemic began.

At this year’s event, which was delayed due to the Omicron variant, there will be fewer heads and heads of state from major economies, and the prominent party scene is expected to be lower.

After all, who wants to be seen pouring champagne when the global economy could face a “confluence of calamities,” as International Monetary Fund Managing Director Kristalina Georgieva said this morning?

“As policymakers and business leaders head to Davos, the global economy may be facing its biggest test since World War II,” warned Georgieva, who will speak to several panels in the coming days.

The global slowdown in growth was an important topic on Monday.

The combined economic output of the G7 countries fell 0.1% in the first quarter of the year, compared to the previous three months, the OECD said in a new report.

Jason Furman, former chief economic adviser to President Barack Obama, told me that the United States “is in the smallest position of any economy in the world.” Consumers are worried about inflation, but they still have a lot to save and spending remains strong.

But he thinks the risk of a recession will rise in 2023, as the Federal Reserve raises interest rates in an attempt to lower inflation.

“I’m more worried about the risks of a recession in a year and beyond,” he said on the sidelines of the forum. “I think the Fed should try a soft landing. I don’t know if he will succeed.”

But the main focus of the conference remains the war in Ukraine.

President Volodymyr Zelensky delivered the forum’s opening speech via video at a main house. He thanked the participants for their support for Ukraine, but asked them to continue, calling for an embargo on Russia’s oil exports, sanctions against all Russian banks and more funding for in the army of Ukraine as well as reconstruction.

“I just hope you don’t lose your sense of togetherness,” he said. “It makes the blow most feared by the leadership of the Russian Federation.”

One speaker: Russian officials and oligarchs, who have long been present in Davos, are noticeably absent this year. The clearest sign of Moscow’s new pariah status? The place that Russia used to promote itself in previous forums has been renamed the Russian House of War Crimes. Ukraine House, meanwhile, offers a full record of events, including panels with top Ukrainian officials, culture leader and actor Liev Schreiber.

Why don’t vaccines save the companies that make them

The companies behind life-saving vaccines are experiencing a hangover on Wall Street this year.

Pfizer (DFP), BioNTech (BNTX) at Modern (mRNA) all jumped hard in 2021, thanks in large part to their Covid-19 vaccines and strong sales. But 2022 has not been very kind to them.

Pfizer’s shares fell about 11%, while its vaccine partner BioNTech fell 36%. Moderna dropped by more than 45%.

Back: Selling the vaccine to Covid is not the problem, wrote my CNN Business colleague Paul R. La Monica. Part of the problem is that investors have anticipated that strong demand and have done the best that traders do: buy the rumor and sell the news.

There are still some potential benefits to come. Health regulators in the United States last week approved booster doses of the Pfizer/BioNTech vaccine for children ages 5 to 11. And Pfizer could get more help from Covid treatments using the Paxlovid antiviral pill its, which was approved last year.

Pfizer is probably the best position of the three vaccine makers to thrive beyond Covid. The company was recently on a takeover spree, recently announcing plans to acquire migraine drug maker Biohaven at nearly $ 12 billion.

Moderna is another story. It’s a young company, founded just over a decade ago, and it’s not as different as Pfizer. In other words, he needs to find another big blockbuster. Nearly 97% of the company’s first quarter sales came from its Covid vaccine. He was also concerned about a public relations mistake: the company’s chief financial officer was forced to resign after a few working days following the disclosure of financial irregularities that were the subject of an investigation.

BioNTech, like Moderna, is also pretty one-trick pony now because almost all of its revenue in the first quarter came from the Covid vaccine. Pfizer generated only about half of its sales from the vaccine in the first quarter.

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