U.S. markets closed lower on Monday, and Tuesday’s premarket session was off to an unimpressive start. The 10-year Treasuries traded essentially flat, after a day off Monday, while crude oil and natural gas pulled back somewhat. The job openings report (JOLTS) was due later in the morning, and economists expect the total number of job openings to rise from around 10.93 million in July to 11.01 million in August.
Meme stocks closed pretty well mixed on Monday, with neither gainers nor losers throwing shade on the other. The most interesting story from Monday’s market action has to be Hostess Brands Inc. (NASDAQ: TWNK). During the meme stock spike in late January that propelled AMC and GameStop into the stratosphere, Hostess stock jumped about 7% and, for the most part, hasn’t looked back.
Shares are up nearly 45% over the past 12 months for the maker of those luscious Twinkies, including a 15% spike since September 20. Shares set a new 52-week high Monday of $18.90, but ultimately closed down about 0.7% at $18.42.
Perhaps Hostess could serve as a proxy for illegal cannabis sales. Excluding Sundial Growers, Hostess stock outperformed the other four largest cannabis growers–combined–for the past 12 months. Last week, Oregon authorities discovered an illegal marijuana grow with product valued at more than an estimated $100 million. Marijuana legalization has been a boon to illegal growers who can underprice legal shops that have to pay state taxes.
Clover Health Investments Corp. (NASDAQ: CLOV) added about 2.7% to its share price on Monday. The company had no specific news and was trading down slightly Tuesday morning.
GameStop Corp. (NYSE: GME) added more than 3% on Monday and traded up about 1.2% in Tuesday’s premarket. The stock is still heavily shorted (nearly 16% of the float is short), so there may be opportunity left here. Trading volume in the stock is relatively light, however, at around 2.3 million shares per day.
SoFi Technologies Inc. (NASDAQ: SOFI) was Monday’s only double-digit winner, adding about 13.5% to its share price to close at $18.39. Volume was more than three times the daily average of around 21.7 million shares. The company had no specific news Monday, but it has generated the most chatter on WallStreetBets for the past couple of days.
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