U.S. stocks made a strong recovery this weekend even as stocks swung voraciously in both directions this week.
Wall street made its steepest fall since the last October sell-off as rising fears of inflation and news over the consumer prices leaping up to a 13 year high in April created waves of trepidation in the market. As the price on everything, ranging from cars to hotel-room bookings rose, accelerated by a rising demand for consumer goods, combined with increasing fears that the Federal Reserve will hold back on the easing monetary policies, Wall Street faced a flurry of panic in the beginning of the week which was calmed down by the Fed as many officials confirmed that the organization plans to continue the easing of monetary policies.
As a result, even though the S&P 500 (GSPC), Dow Jones Industrial Average(DJI), and Nasdaq(IXIC) gained 1.5%, 1.1% and 2.3% respectively on its Friday close, the same 3 indices lost 0.35%, 1.04%, and 2.34% for the week.
Top Stories This Week
Companies ‘Wage’ A War For Labour
Low wage workers become retail and fast food company favourites as companies wage a war on hiring workers on a wide scale. Some of the biggest U.S. employers of entry level jobs like McDonalds (MCD) and Amazon (AMZN) are on the hunt for workers as they fight to increase pay and employment levels to lure people to their companies. Amazon said it would hire 75,000 workers and offer $1,000 signing bonuses, while McDonalds promised that it would hire 10,000 workers at company owned locations in the next 3 months, and would raise pay at those locations as well. Chipotle Mexican Grill Inc. (CMG) , AppleBee’s (DIN) and Yum! Brands (YUM) owned KFC are other such employers that aim to hire tens of thousands of workers as they look to restore indoor seating and bolster staffing.
As increased vaccinations, huge infrastructure plans and economic boosts are motivating retail giants to catch up with the rising customer demands and increased outdoor shoppings, companies face heavy competition in their struggle to find labour. As a result, average hourly wages have risen by 21 cents to $30.17 last month, according to a recent Labor Department report. In general, the prospects for employment in the U.S., especially for low level jobs is finally optimistic after a long slump caused by the coronavirus pandemic, which led to major employment cutbacks and cost reductions.
Bumble On A Fly-High Quarter
Bumble (BMBL)reported a stellar first quarter earnings in terms of revenue growth and profit last Wednesday, exceeding all expectations. The dating app company reported that its number of paid users rose 30% to 2.8 million compared to nearly 2.2 million in the last quarter. It’s net income rose to $323 million, or $1.69 a share, against a net loss of $55.8 million last year. The company’s revenue also rose to $170.7 million compared to $79.1 million last quarter.
Bumble’s women-first narrative and a mission of safety and comfort in using the dating app has created a huge leverage for this one of a kind dating company. Having gone public only at the beginning of this year, this company is on a steady path to progress as it’s user friendly app, and recent video chat addition only adds to the deck of diversity that Bumble brings.
In other news, Bumble is also contributing to India’s covid relief efforts through UNICEF, to help the country battle the devastating pandemic.
Reddit Pushes AMC Stocks Up, Yet Again!
Theatre group AMC Entertainment (AMC) makes yet another comeback with a share surge of 24% last Thursday, as the reddit group of retail investors fails to give up on the company’s performance. This surge was followed after the company’s announcement of raising $428 million via a stock issue, which propelled the reddit group to push this stock “to the moon”, as the battle between short sellers and retail investors continued.
This time however, the theatre industry is indeed set on a comeback. As the CDC eases lockdown restrictions, the potential reopening of theatres for fully vaccinated people in full capacity comes closer to reality. In turn, people have started laying smart bets on the pandemic-downtroddens, as the U.S. sets to re-open the country in full gusto.
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