A shortened workweek, due to the observance of Memorial Day on Monday, saw a relatively flat market through the week. Impressive jobs data propped up the market late in the week, while “meme stocks” like AMC once again experience a whirlwind of activity.
1. Jobs Data – An estimated 559,000 new jobs were created in May, with the hospitality
industry leading the way, adding 292,000 new positions. While the total number fell
slightly short of analyst expectations, the markets still reacted favorably. Additionally,
the unemployment rate fell to 5.8%, exceeding expectations.
2. Infrastructure Plan – President Biden met with Republican Senator Shelly Moore Capito
regarding a possible infrastructure compromise. The two sides remain at odds over
several topics including total spending budget and corporate tax rates. However, the
two sides are scheduled to meet again on Friday to continue the discussion.
3. Reddit Stocks – Activity in so-called “meme stocks” or “Reddit stocks” picked up again,
as shares of AMC were up as much as 80% this week after the company announced
plans to sell 11.5 million additional shares. AMC is just one example of many companies
targeted by retail investors seeking to target undervalued companies. The impact of
these retail investors has been so significant that Bank of America has begun identifying
potential up-and-coming targets by analyzing how many mentions each stock gets on
Reddit.
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