Episode 86: The meme stock mania is back
The meme stock mania is back and AMC Entertainment became the star of the show this time with shares doubling during the holiday-shortened week.
On its way "to the moon," AMC was able to quickly raise around $800 million in cash by selling 20 million shares in two separate deals this week. Heightened speculative trading activity was also seen in Bed Bath & Beyond, BlackBerry and GameStop.
Jobs Report U.S.: Stocks climbed on Friday as the key May jobs report showed solid gains, boosting confidence in the economic comeback. The U.S. economy added 559,000 jobs in May, the Labor Department said on Friday. The number came in slightly lower than an estimate of 671,000 from economists surveyed by Dow Jones, but still showed a healthy rebound in the labor market as it’s up from a disappointing 266,000 payrolls added in April. The unemployment rate fell to 5.8% from 6.1%, which was better than the estimate of 5.9%. Many believe the jobs report, while solid, is not strong enough to trigger the Federal Reserve to dial back its bond-buying program. The 10-year Treasury yield dipped slightly following the jobs report. Bond yields had jumped higher in recent months amid rising inflation expectations.
Female and BIPOC CEOS: The 2021 Fortune 500 includes 41 companies led by women—an all-time record. Beyond that, it also includes the highest-ranked company ever run by a female CEO: No. 4 CVS Health, with CEO Karen Lynch at the helm. (The record was previously held by GM, which, under CEO Mary Barra, hit a high of No. 6.) Emma has written about Lynch and her historic status before but checked in with the CEO to get an update for our new issue. Read her latest here.
Let the Music Play: Billionaire investor Bill Ackman’s blank-check company Pershing Square Tontine Holdings (PSTH) confirmed on Friday it was in talks to buy 10% of Universal Music Group for around $4 billion. The deal values Universal Music at 35 billion euros (around $42.4 billion), PSTH said in a statement. PTSH said the deal will not result in a merger and Universal Music will go ahead with a planned listing on Euronext Amsterdam in the third quarter of 2021.
Markets This Week
Dow 30 34,756.39 +179.35 (+0.52%)
S&P 500 4,229.89 +37.04 (+0.88%)
Nasdaq 13,814.49 +199.98 (+1.47%)
IPO/SPAC
Rental economy. Rent the Runway, led by CEO Jennifer Hyman, is reportedly getting ready for an IPO. The clothing rental service, which recently entered the resale market and added Gwyneth Paltrow to its board, is interviewing banks for a potential public offering. Bloomberg
LATAM
MEXICO CITY--(BUSINESS WIRE)--Grupo Bursátil Mexicano (GBM), a leading investment platform in the Mexican stock market for over 35 years, today announced that it has reached an agreement with the SoftBank Latin America Fund, under which the SoftBank unit will invest up to US$150 million into a subsidiary of GBM. The transaction values GBM’s operating holding at over US$1 billion. GBM plans to use the proceeds to accelerate growth in all the business lines where it currently operates, as well as expanding into new verticals. GBM will also boost investments in order to enhance the democratization of investments in Mexico, and offer financial education so that Mexicans can regain control of their finances. The company will continue to focus on building out its talented team of more than 450 employees – who bring deep experience from the largest tech and financial firms globally – as well as to attract top talent in the region and enhance its investment products