- NYSE:GME turned north on Tuesday, jumping to $42.19 per share.
- Reddit traders hop over to Bed Bath and Beyond and Magic Empire on Monday.
- Morgan Stanley created a frenzy around another potential meme stock.
Update: NYSE:GME stock price rebounded firmly on Tuesday, snapping the ongoing downtrend but failed to sustain at weekly highs of $45.53. Despite the quick retracement, the GME shares gained 6.33% on the day to settle at $42.19. The upswing could be technically driven after the stock price passed above its 200-Daily Moving Average (DMA) during trading on Monday. The meme stock rallied hard even though the broader Wall Street indices closed mixed amid growing recessionary fears and pre-Fed minutes anxiety. The Fed July meeting minutes will be published on Wednesday and could provide fresh hints on the size of the next Fed rate hike.
NYSE:GME started the week lower as the original meme stock was left out of the short squeeze party on Monday. Shares of GME slipped lower by 2.60% and closed the trading session at $39.68. After a tentative start to the day, stocks pushed higher yet again as the broader markets extended the momentum after closing out its fourth consecutive weekly gains. All three major indices rose higher as the Dow Jones gained 151 basis points, while the S&P 500 and the NASDAQ added a further 0.40% and 0.62% respectively during the session.
Despite the ongoing short squeeze and meme stock frenzy, GameStop and AMC (NYSE:AMC) were both out of favor on Monday. Bed Bath and Beyond (NASDAQ:BBBY) once again ruled the chatter on r/WallStreetBets and Stocktwits. Shares of BBBY rose by a further 23.55% on Monday, bringing its total gains for the month to a whopping 220%. Elsewhere in meme stock land, Magic Empire Global Ltd (NASDAQ:MEGL) was at it again as the Hong Kong-based stock surged by 115.69%.
GameStop stock price
There was another meme stock frenzy going on that didn’t receive as much coverage as BBBY or MEGL. Bankrupt cosmetics company Revlon (NYSE:REV) rose by 30.54% on Monday after Morgan Stanley (NYSE:MS) disclosed it bought over 400,000 shares of the stock. Since Revlon hit a low price of just over $1.00, the stock has surged by nearly 600% as meme stock traders attempt to revive the company.
Update: NYSE:GME changed course on Tuesday and trimmed its previous losses to settle at $42.19 per share, up 6.35% on Tuesday. Market participants cheered encouraging US data, as Industrial Production and Capacity Utilization rose by more than anticipated in July. However, gains were uneven across US indexes. The Dow Jones Industrial Average was the best performer, adding 239 points or 0.71%. The S&P 500 added a modest 0.31%, while the Nasdaq Composite spent the day in the red and ended up shedding 0.19%.
Looking ahead, investors await the FOMC Meeting Minutes, to be out on Wednesday. The central bank has confirmed it will maintain its tightening path, although it is unclear the size of the September rate hike. Chances of another 75 bps hike have decreased following signs of easing inflationary pressures.
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