Video games retailer GameStop (NYSE: GME) stock spikes almost 9% in pre-market trading on Thursday after the company announced a four-for-one stock split, with the decision effective from July 22nd. the stock surged as high as $127.80 in pre-market trading.
GameStop plans to pay out the additional shares in the form of a stock dividend. Shareholders of the Company who register by the end of July 18, 2022, will receive a dividend in the form of three additional Class A common shares of the Company for each Class A common share held at that time. The stock dividend will be distributed after the close of trading on July 21, 2022.
Wall Street ended slightly higher on Wednesday supported by stronger-than-expected US macro-economic data, both the June ISM Services PMI and the JOLTS report topped forecasts. The ISM Services PMI edged lower to 55.3 in June of 2022 from 55.9 in May but came above the market forecast of 54.3.
Crude oil prices extended the decline on Wednesday amid concerns over slower economic growth. Meanwhile, the latest API data showed the US crude inventories increased by 3.825 million barrels in the week ended July 1st of 2022, compared with market forecasts of a 1.100-million-barrel draw
In the currency market, the euro notched up small gains against a dollar after the previous 2 sessions' sell-off while overall momentum remains bearish, focus shifted to the European Central Bank meeting minutes which is set to release later today. On Wednesday, the currency pair plunged to a fresh two-decade low of 1.0160.
The precious metal is struggling to regain upside momentum following the release of hawkish FOMC meeting minutes. Moving ahead to the North American session, the gold traders should closely monitor the release of the US ADP employment report.
On the data front, the Federal Reserve released the last meeting minutes on Wednesday. The minutes showed the central bank’s officials reiterated a tough stance against inflation, saying another 50- or 75-basis-point move would “likely be appropriate” at the July 26-27 meeting.
Moving ahead today, the important events to watch:
Eurozone – ECB meeting minutes: GMT – 11.30
US – ADP employment report: GMT – 12.15
US – Jobless claims: GMT – 12.30
Worldwide, more than 549 million people have been confirmed infected and more than 6.3 million have died. The United States has confirmed over 87.5 million cases and has had more than 1017,200 deaths from COVID-19, the highest total in the world.
Technical Outlook and Review
EURUSD: On the downside, if the bearish momentum continues the next key demand area is to watch at 1.0160 and 1.0100. On the upside, 1.0280 will act as an immediate and strong hurdle while 1.0350 will be a critical resistance zone.
The important levels to watch for today: Support- 1.0160 and 1.0130 Resistance- 1.0280 and 1.0350.
GOLD: The precious metal slightly recovered. Now the resistance is 1750 & recent high 1747 trade or holds above resistance level then 1748 & 1760 easily looking but if not sustain then again come down up to support level 1730 & 1724.
The important levels to watch for today: Support- 1737 and 1730 Resistance- 1750 and 1760.
Quote of the day - Successful trading is about finding the rules that work and then sticking to those rules.