Today’s Market Wrap Up and a Glimpse Into Tuesday

Gerelyn Terzo
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What a difference a trading day makes. Stocks rebounded, with all three major indices closing in the green. It was a welcome change after last week’s Fed-induced, tumultuous sell-off. Today, all 30 Dow stocks were higher across the board.

The Dow Jones Industrial Average was coming on the heels of five consecutive down sessions as stocks suffered their worst weekly performance since last October, an ominous month from which to draw a comparison. The Dow tacked on more than 500 points, or almost 2%, today with financial stocks saving face after last week’s losses. The S&P 500 and the Nasdaq finished up by 1.4% and just under 1%, respectively.

Meme Stock Meltdown

While the broader stock market went up, meme stocks went down. GameStop shares shed more than 6% even after the company announced it named the new CEO and former Amazon exec Matt Furlong to the board. GME is also down fractionally in after-hours trading.

AMC Entertainment similarly gave up 6% in today’s session, and it could be a sign of things to come. Jim Cramer, founder of TheStreet.com, warned that the influence of the Reddit investor crowd could be weakening, after stocks recently touted on the platform have failed to gain any real traction. Cramer believes that the movement will consolidate around the two names that started it all — GameStop and AMC.

Look Ahead

There will be a couple of potentially market-moving events on Tuesday.

  • Existing home sales for the month of May will be released.

  • Cleveland Fed President Loreta Mester will make remarks.

  • Fed Chairman Jerome Powell will testify before the Select Subcommittee on the central bank’s response to coronavirus.

In the after market, poultry producer Sanderson Farms is up more than 9% in response to a report that the company could be on the block. The possible sale is in response to robust demand for chicken. Continental Grain, which is dedicated to ag investments, is said to have shown an interest.

Meanwhile, Bank of America predicts that oil prices could revisit USD 100 per barrel in 2022 amid strengthening demand for travel. One stock that is already reflecting that bullish sentiment is Diamondback Energy, the shares for which are up fractionally in extended hours after rising more than 6% on the day. The stock has advanced nearly 90% so far this year. And with the price of oil poised to rise, this stock and others in the sector could have more runway for gains.

This article was originally posted on FX Empire

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