The stock market opened higher on Monday but closed mixed as investors grappled with disappointing economic data. Still, there was plenty of room for gains elsewhere, especially in some meme stocks that soared on another cryptic Roaring Kitty post.
Immediately after the opening, Institute of Supply Management The company said its manufacturing Purchasing Managers’ Index (PMI) fell to a weaker-than-expected 48.7 in May from 49.2 in April. A reading below 50 indicates an economic recession. inflation – Eased to 57.0 from 60.9 but remained in expansionary territory.
Isolate your data Census Bureau Construction spending unexpectedly fell in April, marking the second consecutive month of declines.
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Investors have welcomed bad economic data this year in hopes of sparking a Fed rate-cutting campaign, but “they are reacting with fear to weak data because it could signal a phase in the business cycle where stocks fall along with yields as economic growth weakens,” he said. Jose TorresSenior Economist at Interactive Brokers.
next Economic Calendar A series of employment data will be released tomorrow morning, starting with the Jobs and Labor Mobility Survey (JOLTS).
Brent SchutteThe chief investment officer at Northwestern Mutual Wealth Management Company said he would be watching to see “whether the gap between job openings and job seekers continues to narrow, easing wage pressures on companies.”
Berkshire shares plunge amid technical issues
In individual stock news, Berkshire Hathaway (BRK.A, -0.6%) was especially volatile today. In fact, Class A shares of Warren Buffett’s holding company plummeted 99% and were halted from trading due to a technical glitch linked to the New York Stock Exchange’s (NYSE) Upper and Lower Limit (LULD) bands. The bands were put in place in 2012 to limit extreme fluctuations in stock prices.
The issue has caused gold producers’ share prices to fall as well. Barrick Gold (Gold, +1.9%) Industrial Stock New Scale Power (SMR, -12.6%).
Barking Kitty post boosts meme stocks
Meme stocks also made big moves on Monday. Uno Card Mystery Post Keith Gill, aka “Roaring Kitty.” Gill and his fellow Reddit WallStreetBets members A massive short squeeze The start of 2021 caused volatile trading in several stocks that were heavily shorted.
A post on Gil’s X account in mid-May was helpful. GameStop (GME) has nearly doubled in value in the last month. Today, the stock is up 21%, along with other meme stocks up 21%. AMC Entertainment Holdings (AMC) rose 11.1%.
Regarding the main indicators, Dow Jones Industrial Average Sales fell 0.3% to 38,571 units. S&P 500 It rose 0.1% to 5,283. Nasdaq Composite Index It rose 0.6% to 16,828 shares, driven by gains in semiconductor-related stocks. NVIDIA (NVDA, +4.9%) and Arm Holdings (ARM, +5.5%).
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