The Dow broke off its winning streak on Thursday
Although the week was short with markets closed on Monday for Memorial Day, there was still a lot to do to keep investors in suspense. Tuesday saw the Dow in his fourth win in a row to start the month of June as U.S. Covid-19 cases continued to decline while vaccination rates accelerated. By Wednesday, the blue-chip index extended its lead even further, while all three major indices posted subdued gains Fears of inflation further fueled investor worries. The Dow started with one on Thursday three-digit decline, but a recovery at reopening games and “Meme stocks“Helped the index recover much of the losses by the afternoon. At the end of the shortened holiday week, the most important benchmarks look straight in the eye weekly profitsthanks to a better-than-expected decline in the unemployment rate.
Billion dollar deals, mergers and partnerships
There has been a multitude of billion dollar deals, mergers, and partnership news that got investors excited. Cloud name Cloudera (CLDR) announced that it will be acquired by Clayton, Dubilier & Rice for $ 5.3 billion. E-tail giant Etsy (ETSY) has announced that it will be Buy Depop, a Generation Z fashion brand, for $ 1.63 billion to attract younger customers. Tilray (TLRY) and Aphria have been making headlines since announcing their merger, and at least one analyst hit the former with a bull note in response, saying Tilray has many Post-merger strength. Eventually, Casey’s General Stores (CASY) have teamed up with Uber Technologies (UBER). Uber eats Delivery from over 750 locations, seven days a week.
“Meme stocks” are making a comeback
It looks like “meme stocks” are ready for another run as this week has seen plenty of action among names heavily targeted by retailers on sites like Reddit. Marijuana name Sundial growers (SNDL) is one such stock that rose 55% in one week. Blackberry (BB), an old favorite, also returned to the spotlight. The Tech symbol is up nearly 200% year over year and was the second most mentioned stock on Reddit’s WallStreetBets forum. Last but not least is the forum’s favorite name, AMC entertainment (AMC). The cinema operator soared 38% on Wednesday despite dealers dealing a blow after AMC raised more than $ 230 million to sell shares to Mudrick Capital.
How the SPX could weather the summer lull
The winning season is nearing its end despite reports from Chewy (CHWY), Dave & Buster’s (PLAY), RH (RH) and Signet Jewelers (SIG). Plus a flood of Economic data due, including consumer data, unemployment claims data and the latest federal budget balance. In the meantime, see if the S&P 500 (SPX) has the “Summer lull” this year.