Dow Reverses Losses as Reopening Plays Bounce

"Meme stocks" are still the center of attention today

Digital Content Manager
Jun 3, 2021 at 12:20 PM
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Upbeat jobs data and a rebound in reopening plays are helping the major indexes pare some of their earlier losses this afternoon. The Dow Jones Industrial Average (DJI) managed to erase this morning's triple-digit drop, and was last seen up 20 points. Meanwhile, the S&P 500 Index (SPX) is still slightly lower, distancing itself from its May record, while the tech-heavy Nasdaq Composite (IXIC) is deep in the red, with many traders spooked by another surge in speculative trading, as well as the future of inflation so close to another big Federal Reserve decision.

What many are dubbing "meme stocks" are cooling off today, with many taking profits on AMC Entertainment's (AMC) surge to all-time highs during the previous session. Other big names connected to the craze, such as BlackBerry (BB) and GameStop (GME), are also selling off.

Continue reading for more on today's market, including:

  • Pot stock is piping hot, thanks to a post-merger bull note
  • Analyst upgrades TTWO on long-term growth prospects.
  • Plus, another cannabis name blasted by bulls; and Reddit takes aim at WKHS and BBBY.

MMC Stats 603

Another pot stock making headlines today is Sundial Growers Inc (NASDAQ:SNDL), which is up 18.6% to trade at $1.34. The equity is also experiencing an unusual amount of activity in its options pits, with 792,000 calls and 66,000 puts across the tape so far -- nine times what's typically seen at this point. Most popular by far is the weekly 6/4 1.50-strike call, followed by the 6/11 1.50-strike call, with buyers of these options expecting more upside for SNDL by the time these contracts expire tomorrow. Sundial has been the target of Reddit traders of late, as the security is heavily shorted. Plus, yesterday Amazon (AMZN) said it supports federal legalization of marijuana. SNDL now on its way up again after cooling off from a Feb. 11 record high of $3.96, and has added 331.6% in the last nine months.

Manufacturing name Workhorse Group Inc (NASDAQ:WKHS) is one of the best performing stocks on the Nasdaq today. The security was last seen up 36.7% at $15.75, after Reddit traders took aim at the heavily shorted stock, despite the company losing its bid on an United States Postal Service (USPS) deal. Prior to today's bull gap, the equity had taken a tumble all the way down to the $7 level, after soaring to a Feb. 4 record high of $42.96. Today's pop is also helping the security break through its 60-day moving average for the first time since February. Longer term, WKHS sports a 449% year-over-year lead. 

Meanwhile, one of the worst stocks on the Nasdaq today is Bed Bath & Beyond Inc. (NASDAQ:BBBY). The security is down 24.2% at $33.51 at last check, just a day after surging to its highest level since January amid mentions on Reddit's WallStreetBets forum. The equity has been on a bit of a rollercoaster over the past year, but it still has the support of its 180-day moving average. Year-over-year, BBBY remains up 326.4%.

BBBY 180 Day

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