Meme Stocks Steal the Show as Wall Street Watches Inflation

The S&P 500 finally nabbed a fresh record high on Thursday

Deputy Editor
Jun 11, 2021 at 1:58 PM
facebook X logo linkedin


This week saw plenty of action, not only from the major benchmarks, but also from retail investors who set their sights on a number of heavily shorted stocks. Kicking off the week, the Dow extended the previous week's losses, while the Nasdaq and S&P 500 saw muted sessions against a backdrop of noise made by "meme" stocks. Tuesday was another quiet session, with the S&P 500 simmering just below its record highs for the majority of the day.

Wednesday's trading was more of the same. All three major indexes finished the day with slight losses, while traders cautiously awaited the next day's consumer price index (CPI) release. Though May's CPI reading saw its fastest growth since summer of 2008 -- up 6% year-over-year, and 0.6% for the month -- Wall Street largely shrugged it off, sending the S&P 500 to finally snag a fresh record high on Thursday. The Dow and Nasdaq also closed the day on a high note. It looks like the S&P and Dow are cooling during today's session, though, and the blue-chip index looks set for a weekly loss.

Meme Stock Craze Rages On

What seemed like a fun way for retail investors to make a splash in the trading world has turned into a full-on phenomenon, as meme stocks continue to hog the spotlight. Reddit darling GameStop (GME), which may have been the stock that kicked this whole thing off, caught even more attention ahead of its first-quarter earnings call. Fast food giant Wendy's (WEN) also joined the list of stocks mentioned on Reddit's Wallstreetbets forum, surging to an all-time high in the aftermath. Tilray (TLRY) also entered the fold, and the cannabis producer's CEO welcomed the attention with open arms, lauding retail traders' high level of knowledge on the company and its products. 

 

Analyst Upgrades Galore

With earnings season come and gone, analysts are keeping themselves occupied with plenty of updates. On the heels of a controversial U.S. Food and Drug Administration (FDA) decision, J.P. Morgan Securities chimed in on Biogen (BIIB) with a hefty price-target hike. Analysts also turned bullish on one notable apparel retailer, saying the company's strategic decisions during the pandemic are paying off. Looking at the long-term game, Fox (FOXA) nabbed an upgrade from Well Fargo, as the company moves its focus to sports betting lines. Lastly, an earnings beat brought the bulls out for Stitch Fix (SFIX) stock, and the company raised its 2021 revenue beyond analysts' expectations.

Another Bullish Indicator for Investors to Utilize

There's a handful of quarterly reports due out next week, including those from H & R Block (HRB), Kroger (KR), and Smith & Wesson Brands (SWBI). More economic data is on the way too, with plenty of manufacturing data and a Federal Reserve announcements on the docket. In the meantime, check out Schaeffer's Senior Quantitative Analyst Rocky White's rundown on how the Gamma-Weighted SOIR can be used as a bullish indicator. Traders might also want to take a look at an explanation of what the summer months could mean for market volatility. 

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI