GameStop and Workhorse Group Lead Stock Market Higher Because Investors Love These Trade Moves
MThis morning provided a nice boost to the stock market, as investors grappled with whether the recent sell-off was just a small correction or something with longer term implications. With stimulus legislation appearing to be moving forward, Americans should improve their financial situation, but it remains to be seen how far that will go. Starting at 11:15 a.m. EST, the Dow Jones Industrial Average (DJINDICES: ^ DJI) is up 406 points to 31,902. The S&P 500 (SNPINDEX: ^ GSPC) increased by 25 points to 3,867, but the Nasdaq Composite (NASDAQINDEX: ^ IXIC) gave up his early gains and lost 18 points to 12,902.
GameStop (NYSE: GME) and Workaholic group (NASDAQ: WKHS) have been in the limelight for quite some time, with many investors following their respective actions. Often their volatile movements have not been in response to anything that has the potential to affect their fundamental trading results. Monday, however, there is in fact was news that could make a big difference in their future, and this helps to give more stock Exchange an elevator.
Image source: Getty Images.
GameStop level up
GameStop shares soar 36%, with its stock hitting nearly $ 200 per share at certain times of the morning. The company got another vote of confidence from a big advocate, and shareholders are excited about what could come of it.
Ryan Cohen Co-Founded Online Pet Specialist soft (NYSE: CHWY), but lately he’s been spending more time as an activist investor focused on GameStop. The company announced that Cohen is chairing a new strategic planning and capital allocation committee. Additionally, since this committee began its work, GameStop has appointed a CTO, began its search for a new CFO with e-commerce and technology experience, and has hired executives to lead the teams. e-commerce execution efforts and customer service.
Cohen’s involvement has already changed the narrative surrounding the stock. Before he came to the table, almost everyone seemed to agree that the video game retailer was doomed. Now that he is exerting his influence, however, recovery efforts are gaining credibility, and many of the bearish arguments for action are less about whether a recovery could be successful and more about whether the magnitude of the rise in the share price is too great.
It’s a noticeable change in sentiment. That doesn’t mean GameStop stock will rise forever, but it could make short sellers a little less confident in their bearish case.
Workhorse is hoping for a second chance
Meanwhile, shares of Workhorse Group rose more than 14%. The electric van maker received bad news a few weeks ago, but some shareholders have new hope that Workhorse could rewrite a key contract to a competitor.
Workaholic stocks fell sharply in late February, when the U.S. Postal Service awarded a $ 6 billion contract to Oshkosh (NYSE: OSK). The company was disappointed that its next-generation delivery vehicle bid was not accepted, and it vowed it would do everything possible to deepen the awarding of the award.
Over the weekend, however, Representative Tim Ryan (D-Ohio) called for an investigation into the Oshkosh price, particularly in light of a large after-hours trading of nearly 525,000 shares. working hours immediately before the announcement of the contract. Ryan represents the district in which Workhorse is a partner Lordstown Engines (NASDAQ: RIDE) owns an electric vehicle manufacturing plant.
It is not clear whether an SEC investigation would cause the Postal Service to reopen the underlying tendering process. However, with so many hopes placed on Workhorse to deliver mail trucks to the federal government, shareholders are trying to find optimism where they can.
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