The Dow is striding towards a weekly loss
There was a lot of action this week, not just from the big benchmarks, but from Retail investors targeting a number of heavily short stocks. At the start of the week, the Dow extended the previous week’s losses, while the Nasdaq and S&P 500 amid the noise of “Meme” stocks. Tuesday was another quiet session with the S&P 500 simmering just below its own Record highs for most of the day.
Trading on Wednesday was rather the same. All three major indices ended the day slightly lower as traders waited cautiously for the consumer price index (CPI) to be released the next day. Although CPI measurement in May saw its fastest growth since the summer of 2008 – up 6% year over year and 0.6% for the month – Wall Street largely shrugged and sent the S&P 500 on finally get hold of a new record high on Thursday. The Dow and Nasdaq also ended the day with good results. However, it looks like the S&P and Dow will be cooling off during today’s session and the blue chip index appears to be set at a weekly loss.
Meme Stock Craze continues to rage
What seemed like a fun way to cause a sensation in the trading world to retail investors has grown into a sweeping phenomenon since Meme stocks continue to be in the spotlight. Reddit darling GameStop (GME), which may have been the stock that started it all, got even more attention ahead of the conference call for the first quarter. Fast food giant Wendy’s (WEN) has also added to the list of stocks mentioned on Reddits Wallstreetbets Forum and rose to an all-time high in the period that followed. Tilray (TLRY) got in too, and the Cannabis producers CEO welcomed the attention with open arms and praised the retailers’ high level of knowledge about the company and its products.
Analyst upgrades galore
With earnings season over, analysts are busy with many updates. After a controversial decision by the US Food and Drug Administration (FDA), JP Morgan Securities got involved Biogenic (BIIB) with a strong price target increase. Analysts became optimistic about one notable person too Clothing retailer, said the company’s strategic decisions during the pandemic are paying off. Looking at the long-term game, Fox (FOXA) grabbed an upgrade from Well Fargo as the company moved its focus on. relocated Sports betting Lines. Eventually a winning hit brought the cops out for Stitch fix (SFIX) share, and the company grew sales in 2021 above analysts’ expectations.
Another bullish indicator that investors can use
A handful of quarterly reports will be released next week, including those from H&R Block (HRB), Kroger (KR), and Smith & Wesson Brands (SWBI). More economic data is on the way, with lots of manufacturing data and a Federal Reserve Announcements on the docket. In the meantime, read Schaeffer’s Senior Quantitative Analyst Rocky White’s overview of how the Gamma-Weighted SOIR is used as a bullish indicator. Traders may also want to take a look at an explanation of what the summer months could mean for market volatility.