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Stocks Moving Premarket: GM, Palantir, Twitter, KB Home


Futures on the
S&P 500
was indicated to open 0.25% lower and the
Nasdaq Composite
was poised for a slide of 0.2%.
Although U.S. government spending has been highly supportive of the economy and there could be more stimulus on the way because Democrats control both the House and the Senate, the distributions of vaccines has been behind schedule.
As a result, investors are taking some chips off the table, especially because the market was hot to start the new year. Companies on the major U.S. indexes see a significant portion of revenue from overseas.
Here are some notable movers:

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Shrinking Grain Supplies Send Prices Soaring


Shrinking Grain Supplies Send Prices Soaring
Weaker-than-expected harvest of U.S. row crops and strong demand for U.S. exports have driven futures to multiyear highs
This week’s surge carried corn to its highest close since July 2013. Soybeans and wheat are also trading at their highest levels since 2014.
Photo:
Daniel Acker/Bloomberg News
By
Dwindling stockpiles of U.S. grains have sent prices for corn, soybeans and wheat skyrocketing.
Corn futures closed trading Wednesday up 1.4% after rising Tuesday by the maximum allowed by the Chicago Board of Trade to more than $5.17 per bushel. The move followed the U.S. Department of Agriculture’s monthly supply and demand report showing corn production falling short of expectations.

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Gasoline Cost Drives Increase in Consumer Prices at End of 2020

The consumer-price index rose 0.4% in December compared with November, as Americans contended with higher gasoline and food costs along with a rise in coronavirus cases across the country.

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Spike in Gas Prices Drove Up Consumer Prices Last Month, but Inflation Remains Mostly Tame

The consumer price index rose 0.4% in December on a seasonally adjusted basis but core prices, which exclude the volatile food and energy categories, were up only 0.1%.

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How to Play Bond King Jeffrey Gundlach's Favorite Income Pick for 2021


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The chief executive and founder of DoubleLine suggested looking at a beaten-up and unloved sector of credit markets: bank loans.
Alex Flynn/Bloomberg
Risks lurk in an overvalued stock market and the bond market with inflation on the horizon, DoubleLine chief executive and founder Jeffrey Gundlach said. But the fund manager dubbed by
Barron’s as the Bond King nearly a decade ago does have one pick for income investors.
In an interview with CNBC, Gundlach suggested looking at a beaten-up and unloved sector of credit markets: bank loans, which ended 2020 with price losses in many cases as fund investors fled the sector. By contrast, fund investors rushed into other parts of the credit market, especially junk bonds, in their quest to grab what little income was available after the Federal Reserve slashed short-term interest rates to zero and provided unprecedented support to the corporate bond market.

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With Vaccines Rolling Out, Buy U.K. Stocks, Citi Says


A nurse prepares a dose of the Pfizer vaccine.
Anthony Devlin/Getty ImagesGetty Images
The U. K., hard hit by a particularly contagious form of Covid-19, stands to be a particular beneficiary as vaccines are distributed.
Citigroup
says the stock market there could offer better gains than investors can find elsewhere.
Investors expect billions of doses to be distributed worldwide in the coming year or so. That would eliminate the need for lockdowns and get people back to work. At the same time, central banks and governments around the world are pouring money into markets, ensuring that economies are ready to bounce back.

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Intel Is Replacing CEO Bob Swan With Former CTO Pat Gelsinger


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Intel has dismissed CEO Bob Swan, naming current VMware CEO Pat Gelsinger—the onetime chief technology officer of Intel—to take his place. The move is effective on Feb. 15.
Investors cheered the news Wednesday morning, sending shares of Intel (ticker: INTC) up 8.5%, to $57.74.
Swan had been CEO since January 2019, after serving in an interim...
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Intel Is Replacing CEO Bob Swan. Investors Are Cheering the Move.
Intel has dismissed CEO Bob Swan, naming current VMware CEO Pat Gelsinger—the onetime chief technology officer of Intel—to take his place.
From

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Stocks Are Less Driven by Macro Forces. Keep Stock Picking.


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Vaccine news is less likely to affect broad stock-market moves this year.
Vladimir Zivojinovic/AFP via Getty Images
Major macro events are a less important driver of the stock market than they were last year. That means investors should become more discerning in their stock picks.
In early December,
Barron’s reported that the macro contribution, or the amount of the
S&P 500’s
movement explained by macro forces, had declined to 60%, according to Evercore ISI. While it has since ticked up to 66%, it remains well below its early-2020 peak of more than 80%. That 80% level was notable because it was last seen in 2010, when markets were relying on Federal Reserve stimulus to recover from the financial crisis.

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Exxon Mobil Stock Gets Upgrade From J.P. Morgan

In the past month, at least three analysts have upgraded Exxon Mobil, and others have put it on lists of stocks that could pop in 2021.

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The Dollar's Decline in Global Reserves: Fact or Fiction?


Jan. 12, 2021 5:31 am ET
In the third quarter of 2020, the dollar’s share of global foreign-exchange reserves slipped to its lowest level in almost a quarter of a century. But don’t let the figures fool you: The greenback is as central to the global financial system as it has ever been.
International Monetary Fund data shows the dollar’s share of reported reserves fell to 60.5% in September. The drop has been magnified in nominal terms due to the currency’s depreciation over the past year. But even accounting for that, the real dollar exposure of...
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In the third quarter of 2020, the dollar’s share of global foreign-exchange reserves slipped to its lowest level in almost a quarter of a century. But don’t let the figures fool you: The greenback is as central to the global financial system as it has ever been.

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