US stocks end mostly higher; Wendy's becomes latest meme stockWednesday, June 09, 2021
US stock indexes meandered to another uneven finish yesterday after spending much of the day swaying between small gains and losses. The modest moves reflect a wait-and-see attitude among investors amid a light week of earnings and new economic data, though some corners of the market — cryptocurrencies and some social media-hyped stocks — kept traders busy.
The S&P 500 inched up less than 0.1% after earlier veering between a loss of 0.4% and a gain of 0.2%. The benchmark index has barely moved the last two days after notching two-straight weekly gains. The Dow Jones Industrial Average slipped 0.1% while the Nasdaq mustered a 0.3% gain. Smaller company stocks once again outpaced the broader market.
The S&P 500 remains close to its May 7th all-time high but has not been able to climb higher.
A variety of companies that rely on direct consumer spending made solid gains. Domino's Pizza rose 1.2% and Gap gained 2.9%. Industrial stocks also ticked higher. Energy companies rose along with the price of crude oil.
Those gains were kept in check by falling health care and communication stocks. Banks fell, weighed down as bond yields slipped. The yield on the 10-year Treasury fell to 1.54% from 1.57% late Monday.
Elsewhere in the market, Wendy's jumped 25.9% as it seemingly joined a list of companies that have gained the attention of individual investors taking their cues from social media forums. Clover Health Investments soared 85.8%. Other companies that have seen their stock values soar and fall sporadically include AMC Entertainment, Blackberry and GameStop.
Cryptocurrency traders appeared to be in a selling mood. Bitcoin and other popular digital currencies, including ethereum and dogecoin, all fell sharply, according to Coindesk. Bitcoin, which climbed above $60,000 early this year, slid 7% to US$32,690.
Investors have been navigating a choppy market as they digest information on how the economy is recovering. The World Bank upgraded its outlook for global growth this year, predicting that COVID-19 vaccinations and massive government stimulus in rich countries will power the fastest worldwide expansion in nearly five decades. The 189-country anti-poverty agency forecasts that the world economy will grow 5.6% this year, up from the 4.1% it forecast in January. The global economy last year shrank 3.5%.
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