Good morning and welcome to the stock market today! The short trading week is almost over, and everything on Wall Street continues to race ahead. It seems no one wants the third quarter to get off to a slow start. So with that in mind, what will the stock market do today?
- The S&P 500 is down 1.43%
- The Dow Jones Industrial Average is down 1.43%
- The Nasdaq Composite is down 1.4%
So what else did the stock market do today? Here are some of the top stories.
What Will the Stock Market Do Today? Squeeze CARV.
Investors have been on a non-stop hunt for the next GameStop (NYSE:GME) or AMC Entertainment (NYSE:AMC), and today, they found it in one of the largest Black-owned banks. Carver Bancorp (NASDAQ:CARV) is up more than 200% at the time of writing on heavy volume. It seems the retail crowd has locked onto this company as the perfect fit for a short squeeze.
So where did this all come from?
Over on Twitter, Will Meade is a short-squeeze influencer of sorts. He largely identified AMC, Express (NYSE:EXPR) and others as potential targets. The former hedge fund manager has roughly 200,000 followers and provides updates on stocks with high short interests. That is why, last week, he flagged Carver Bancorp for his audience.
$CARV is now the most shorted stock trading trading with a whopping 68% short interest! Short sellers picking on Carver Bancorp, one of the largest African American owned banks. I’m long, let’s make shorts pay. pic.twitter.com/NQSaX3KwsT
— Will Meade (@realwillmeade) June 28, 2021
At the time, Meade highlighted CARV stock as an equity with the highest percent of its float sold short. Investors, including those on a dedicated subreddit, have also locked onto it for its ESG focus. As InvestorPlace contributor Robert Lakin wrote this morning, following the murder of George Floyd last year, nearly $150 million in equity capital has flown into Black-owned banks. This comes as reports highlight that of the 4,700 banks in the U.S. that hold a combined $20.3 trillion of assets, only 21 of them are Black-owned or led. That group has total assets of just $5 billion.
So while there are a lot of reasons to like CARV stock now, investors should note they will likely not find mention of it on r/WallStreetBets. That is because, despite the major squeeze brewing, it does not align with the subreddit criteria. Namely, its market capitalization is just $116 million at the time of writing. Moderators on r/WSB request that all stocks be above the $1 billion threshold.
The bottom line? Dedicated day traders are pushing forward with short-squeeze attempts, and r/WSB is now not the only venue to find investing ideas. Crowds on Twitter, Stocktwits and Discord have latched onto names like Carver Bancorp that are ready to soar.
Everyone Is Quitting…
Do you want to quit your job? If so, you are far from alone. According to a new survey from Monster.com, 95% of respondents have thought about quitting.
Right now, the United States is in a major transitional period. Offices are reopening, schools are reopening, vacation destinations are reopening. Consumers are turning off their televisions and heading to theme parks and shopping malls and movie theaters. Crowded gatherings of friends, family and even strangers are once again becoming the norm. But workers are not all eager to jump back into cubicle life. That is because the pandemic brought about massive employment changes… and gave many American workers a sense of burnout.
In fact, burnout is the top reason respondents cited driving their desires to quit. The other top reason? Lack of growth opportunities.
This Monster.com survey is not alone. New data from the Bureau of Labor Statistics show that 5.3% of leisure and hospitality workers quit their jobs in May. They cited health concerns and a lack of supplemental benefits.
So what does this mean for investors? Right now, publicly traded companies (like other businesses) are figuring out to navigate the new employment landscape. Some, like Chipotle (NYSE:CMG), are moving forward and raising wages. Bumble (NASDAQ:BMBL) just gave employees a week off, and LinkedIn did the same. Shopify (NYSE:SHOP) is designating Fridays this summer as days for relaxing.
Companies want to keep growing, and to do that, they need to keep employees on their payroll. Those that can best meet the changing needs of workers stand to succeed, and are ones that investors should watch closely.
What Else We’re Watching
- Japan declared a state of emergency in Tokyo following a surge in Covid-19 cases. As a result, government officials also announced that the Olympics will be held without spectators. This comes just two weeks before the Olympics kick off. According to Axios, low vaccination rates in Japan are also hurting matters.
- President Joe Biden is expected to take executive action this week in a move against consolidation and anticompetitive pricing. Specifically, he is worried about the ocean shipping and railroad industries. To address growing concerns, Biden will ask the Federal Maritime Commission and the Surface Transportation Board to combat anticompetitive activity.
- Over in the crypto world, developer Circle is prepping to come public. You can read more about the SPAC merger news here.
- Anyone want some free popcorn? AMC Entertainment (NYSE:AMC) shareholder sure did, and other retail-focused companies took note. With this in mind, CarLotz (NASDAQ:LOTZ) announced a new partnership to give shareholders exclusive perks and commission-free trading.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Sarah Smith is the Editor of Today’s Market with InvestorPlace.com.