GME Stock – Meme Stocks Steal the Show as Wall Street Watches Inflation
This week saw plenty of action, not only from the major benchmarks, but also from retail investors who set their sights on a number of heavily shorted stocks. Kicking off the week, the Dow extended the previous week’s losses, while the Nasdaq and S&P 500 saw muted sessions against a backdrop of noise made by “meme” stocks. Tuesday was another quiet session, with the S&P 500 simmering just below its record highs for the majority of the day.
Wednesday’s trading was more of the same. All three major indexes finished the day with slight losses, while traders cautiously awaited the next day’s consumer price index (CPI) release. Though May’s CPI reading saw its fastest growth since summer of 2008 — up 6% year-over-year, and 0.6% for the month — Wall Street largely shrugged it off, sending the S&P 500 to finally snag a fresh record high on Thursday. The Dow and Nasdaq also closed the day on a high note. It looks like the S&P and Dow are cooling during today’s session, though, and the blue-chip index looks set for a weekly loss.
Meme Stock Craze Rages On
What seemed like a fun way for retail investors to make a splash in the trading world has turned into a full-on phenomenon, as meme stocks continue to hog the spotlight. Reddit darling GameStop (GME), which may have been the stock that kicked this whole thing off, caught even more attention ahead of its first-quarter earnings call. Fast food giant Wendy’s (WEN) also joined the list of stocks mentioned on Reddit’s Wallstreetbets forum, surging to an all-time high in the aftermath. Tilray (TLRY) also entered the fold, and the cannabis producer’s CEO welcomed the attention with open arms, lauding retail traders’ high level of knowledge on the company and its products.
Analyst Upgrades Galore
With earnings season come and gone, analysts are keeping themselves occupied with plenty of updates. On the heels of a controversial U.S. Food and Drug Administration (FDA) decision, J.P. Morgan Securities chimed in on Biogen (BIIB) with a hefty price-target hike. Analysts also turned bullish on one notable apparel retailer, saying the company’s strategic decisions during the pandemic are paying off. Looking at the long-term game, Fox (FOXA) nabbed an upgrade from Well Fargo, as the company moves its focus to sports betting lines. Lastly, an earnings beat brought the bulls out for Stitch Fix (SFIX) stock, and the company raised its 2021 revenue beyond analysts’ expectations.
Another Bullish Indicator for Investors to Utilize
There’s a handful of quarterly reports due out next week, including those from H & R Block (HRB), Kroger (KR), and Smith & Wesson Brands (SWBI). More economic data is on the way too, with plenty of manufacturing data and a Federal Reserve announcements on the docket. In the meantime, check out Schaeffer’s Senior Quantitative Analyst Rocky White’s rundown on how the Gamma-Weighted SOIR can be used as a bullish indicator. Traders might also want to take a look at an explanation of what the summer months could mean for market volatility.
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