By Nicholas K
6:53 AM UTC
It’s a weak start to the markets as investors await news from the Federal Reserve Chairman on the steps that the Fed is taking to bump inflation to its set target of 2%.
Speculation is rife that he will only offer a vague idea of the steps that the monetary policy committee will take. This is largely due to data consistently showing underlying economic weakness. Recent data on retail sales and consumer spending has shown that the core economic indicators are weak.
This also comes at a time when the S&P 500 has hit record highs raising fears that the markets are overvalued at the moment. In this environment of perceived high risks, money continues to flow into big tech stocks such as Facebook and Amazon. Investors are optimistic that in the event that the market corrects, big tech has what it takes to absorb the impact.
These stocks have already navigated the last few months of the COVID-19 pandemic well. Despite the dampened mood in the market, there are non-big tech stocks that have started the day on a high note. Some of them are as below:
Urban Tea Inc [NASDAQ: MYT]
Urban Tea is up by over 1000% this morning. The gains comes after the company announced its 1:10 reverse split that has now taken effect. Essentially this means that the company’s stock is now trading at 10 times the price it was trading at before the split.
However, the split does not in any way affect the shareholding of the investors. Every investor will still hold the same percentage of the stock that they held before the stock. Through the reverse split, the company’s shares have shrunk from a total of 79,438,648 to about 7,944,211. However, the reverse split has not affected the company’s preferred shares that still hold at 5 million shares.
Moxian Inc [NASDAQ: MOXC]
Moxian Inc is another stock that has started the day on a high note. This comes after the company announced that it had agreed the terms for a merger with Btab Group Inc. Under the deal, the new entity will offer 59 million of common stock, and 50 million class A shares that have restricted rights to vote. The merged entity will have a valuation of $400 million and over $40 million in revenues annually.
VBI Vaccines Inc [NASDAQ: VBIV]
This is another big mover this morning and has started the day up by over 30%. This comes after the company announced its pre-clinical COVID-19 program data and candidates selection for its one-dose vaccine candidate. This has created excitement around the stock in early morning trading.