Rising oil prices and 10-year Treasury yields combined with a generally weak employment report led to Friday’s lackluster performance for U.S. equity markets. While Treasury yields were flat Monday morning, West Texas Intermediate crude oil traded up nearly 3.3% at almost $82 a barrel, fueling concerns about consumer spending and rising inflation. Consumer Price Index data is due Wednesday morning, and economists are looking for an increase of 0.3% in September (up 0.2% excluding food and energy). Crude oil prices have risen by around $12 a barrel (nearly 24%) over the past 30 days.
Among meme stocks, oil and gas producer Camber Energy Inc. (NYSEAMERICAN: CEI) has been the most active and the most volatile over the past week or so. The shares soared to $4.85 on September 29 and plunged to $0.86 on October 6. On Friday, the stock closed down nearly 4% at $1.71 on trading volume of more than 964 million shares. The average daily volume last week was 700 million shares, compared to the 30-day average of around 171 million.
Camber stock continues to be among Fintel’s most likely to be targeted by a short squeeze: “In the last two reporting periods, raw short interest has climbed from 3.56M shares to 24.5M shares, a colossal increase of 585% – one of the largest increases this team has seen.” As a percentage of the stock’s total float, nearly 42% of Camber’s shares are short. The annualized fee to borrow Camber stock to sell short is 12.78%. The stock traded up more than 5% in Monday’s premarket.
Alibaba Group Holdings Ltd. (NYSE: BABA) added 3.5% on Friday on higher than average volume of 33 million shares. The increase was likely due to a halo effect from the $535 million fine imposed on food-delivery company Meituan. Traders and investors were expecting worse. Friday’s boost for Alibaba was its fifth consecutive daily gain, and the stock traded up about 5.5% in Monday’s premarket.
Bitcoin miner Bit Digital Inc. (NASDAQ: BTBT) is Fintel’s third-most likely candidate for a short squeeze this week. Bit Digital’s borrow fee rate remains elevated at 89.87%, and 18.74% of its float is sold short. The company closed an $80 million private placement last week on the sale of about 13.5 million shares and warrants totaling nearly 10.2 million unregistered shares. The sales price was $5.93 for one share and one warrant to purchase an additional three-quarters of a share for $7.91 per whole share ($5.93 for three-quarters of a share). On October 5, the stock closed at $10.35 and on Friday, the stock closed at $11.35, its highest price in a month. Shares traded up more than 5% in Monday’s premarket.
Clover Health Investments Corp. (NASDAQ: CLOV) closed up about 6% on Friday and traded up about 1.2% early Monday at $7.94. Friday’s trading volume of 30.4 million shares was higher than the daily average of around 26.6 million. Clover Health announced Friday that its 2020 PPO Medicare Advantage plan had received a 3.5-star rating from the federal Centers for Medicare and Medicaid Services (CMS), a half-star improvement over the prior year’s rating.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.