Wall St. Equities Mixed, Futures Near the Flatline | ThorFX

09 Jun 2021 · 3rd Party Analysis

Wall Street Equities End Mixed, Futures Hover Near the Flatline

WRITTEN BY ThorFX

In Summary

  • Stocks wobble for another day on Tuesday as investors brace for Thursday’s inflation report
  • Individual stocks gather momentum as Reddit traders propel a new favorite to an all-time high

Major US benchmark indexes on Tuesday finished mixed as market participants moved one day closer to the widely anticipated inflation report later in the week. The S&P500 stock gauge ended the day barely positive, up less than 1 point, or 0.02%, to 4,227.26. The Dow Jones Industrial Average turned negative near the final hours of the session and posted a modest loss of 30.42 points, or 0.09%, to 34,599.82. The Nasdaq Composite spiked higher and sealed the day gaining 43,19 points, or 0.31%, to 13,924.91.

The narrow swings in the broad-market S&P500 index pushed its valuation to its third-highest close on record. The 500-stock index now hovers just 0.1% away from a fresh all-time high. The Nasdaq Composite, on the other hand, remains almost 2% from its peak in early May, while the Dow Jones is sitting roughly 0.3% from its historical high. Earlier in the week, the blue-chip index briefly traded in record territory during regular hours but later slipped and fall back under its closing high of 34,777.76 set on May 7.

The CPI report scheduled for Thursday is expected to be a key catalyst that could fuel another move in stocks in either direction. Stocks on Wall Street have been trading in a relatively narrow range for the past several weeks. Tuesday marked the 12th straight day without the S&P500 reaching a 1% move either to the upside or the downside. Compared with one month ago, the broad-based index is essentially flat, negative by 0.1.

Meme Stocks Are Still

Meanwhile, as market indexes are moving largely sideways, individual meme stocks have been especially volatile, posting 100%-moves day in and day out. A new Reddit-favorite stock emerged yesterday that saw its price soar as much as 109%. Shares of Clover Health Investments Corp. surged after retail traders on Reddit forums collaborated efforts to pile into the stock as the latest short-squeeze opportunity. Clover Health’s stock price jumped $10.23, or 86%, to close at $22.15, a new all-time for the healthcare company.

Other meme stocks like GameStop and AMC also finished higher yesterday. GameStop advanced 7.14%, or $19.99, to $300.00 a share, while shares in AMC ended modestly higher, up 0.09%, or 5 cents, to $55.05 a share. AMC’s trading frenzy which boosted its price almost double last week has subsided in the past few days after its management announced it had completed a stock offering in a single day, pocketing $587.4mn from the selling of 11.5mn shares.

AMC shares are up 465% for the past 30 days, while GameStop stock is higher by 109% for the same period. In 30 days, shares of Clover Health marked an increase of 168%. The bigger part of the gains arrived this week as the Reddit retail trading mania staged a comeback and the healthcare company became the latest Reddit darling.

On Wednesday, stock futures are fairly muted as market participants are bracing for any outcome of the CPI report on Thursday. Last month, the index rattled the financial markets as consumer inflation for April arrived at 4.2%. Some economists predict that May’s inflation figure will land at 4.7%.

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