Stocks tick higher, Amazon and MGM’s Hollywood deal in focus

Which ‘pent-up demand stocks’ should investors focus on?

Kadina Group president Gary B. Smith, Key Advisors Group CEO Eddie Ghabour and Money Map Press chief strategist Shah Gilani discuss today’s markets and which stocks to keep an eye on in the reopening trade. 

U.S. equity markets posted modest gains Wednesday, putting the major averages within striking distance of their all-time highs as investors took in more earnings and Amazon's $8.45 billion Hollywood MGM deal.

TickerSecurityLastChangeChange %
I:DJIDOW JONES AVERAGES34340.1+27.64+0.08%
SP500S&P 5004191.78+3.65+0.09%
I:COMPNASDAQ COMPOSITE INDEX13705.702102+48.53+0.36%

The Dow Jones Industrial Average gained 65 points, or 0.19%, while the S&P 500 and the Nasdaq Composite advanced 0.17% and 0.35%, respectively. 

Both the Dow and the S&P held within 1.4% of their respective record peaks at Tuesday's close. The Dow was 3.5% below its all-time high. 

WALL STREET CEOS TO FACE CAPITOL HILL SCRUTINY DURING OVERSIGHT HEARING

TickerSecurityLastChangeChange %
AMZNAMAZON.COM, INC.3,263.82+4.77+0.15%

In stocks, Amazon's media deal in focus which will add more than 4,000 movie titles and 17,000 shows to its portfolio. Titles that will enter the Amazon catalog, so long as the deal is approved by regulators, include the "James Bond" and "Rocky" franchises and "The Handmaid's Tale" TV series. Other streaming rivals including Disney, Netflix and Discovery attracting investor attention. 

TickerSecurityLastChangeChange %
DISTHE WALT DISNEY CO.177.21+0.97+0.55%
NFLXNETFLIX, INC.502.50+1.16+0.23%
DISCADISCOVERY, INC.31.54+0.88+2.87%

In other deal news, Vista Outdoor Inc. has agreed to buy hunting athletic-wear brand Venor and electric-bike company QuietKat. Terms of the deals were not disclosed. 

TickerSecurityLastChangeChange %
VSTOVISTA OUTDOOR38.38+0.84+2.24%

Elsewhere, ExxonMobil Corp. faces a fight with an activist investor over its board of directors with climate change being the key issue. Preliminary vote tallies are due around midday. 

TickerSecurityLastChangeChange %
XOMEXXON MOBIL CORP.58.220.000.00%

Cryptocurrency-linked names were higher as bitcoin flirted with the $40,000 level after trading below $32,000 earlier in the week.

TickerSecurityLastChangeChange %
COINCOINBASE GLOBAL247.41+5.00+2.06%
BITQEXCHANGE TRADED CONCEPTS TRUST BITWISE CRYPTO INNOVATORS E22.38+0.74+3.42%

And more social media chatter boosted the so-called meme stocks including AMC and GameStop.

TickerSecurityLastChangeChange %
AMCAMC ENTERTAINMENT HOLDINGS INC17.61+1.14+6.92%
GMEGAMESTOP231.51+22.02+10.51%

In travel, Royal Caribbean Cruises Ltd. was cleared to conduct test cruises with volunteer passengers beginning in June. The cruise said all passengers must be fully vaccinated 14 days before setting sail. 

TickerSecurityLastChangeChange %
RCLROYAL CARIBBEAN CRUISES91.28+2.25+2.53%

In earnings, department store Nordstrom Inc. reported a wider than expected quarterly loss and reaffirmed its full-year outlook, disappointing analysts who had seen other companies in the retail space hike their forecasts in recent days.  

TickerSecurityLastChangeChange %
JWNNORDSTROM33.46-3.00-8.23%
DKSDICKS SPORTING94.75+10.44+12.38%
CPRNn.a.n.a.n.a.n.a.

Dick’s Sporting Goods Inc. reported same-store sales soared 115% year over year, facing easy comparisons as the retailer closed its locations in mid-March due to COVID-19. The sporting goods retailer hiked its full-year guidance. 

Capri Holdings Ltd., parent company of Michael Kors, reported strong quarterly results and guided above Wall Street estimates on hopes demand pickups up as the reopening of the economy gathers momentum.

In commodities, West Texas Intermediate crude oil lost 53 cents to $65.54 per barrel and gold jumped $4.40 to $1,902.60 per ounce. 

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Overseas markets were mixed. 

In Europe, Britain's FTSE 100 fell 0.25% while Germany’s DAX 30 and France's CAC 40 slipped 0.1% and 0.07%, respectively. 

Asian bourses rallied across the board with Japan’s Nikkei 225 advancing 0.31%, China’s Shanghai Composite climbing 0.34% and Hong Kong’s Hang Seng index rising 0.88%.  

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