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The market recovered last week's losses, partially, as investors expect a few critical economic indicators later this week.
All three indices started the week in the green. Later this week, we expect a few important economic indictor reports, including the Consumer Price Index, Consumer spending, and Personal income changes reports that may have an impact on the market. Let's keep an eye on them and discuss the implications for the market when they are out.
Beyond Meat (BYND) jumped more than 9% after analysts confirm an upside from restaurants' reopening.
Remember I discussed and invested in Beyond Meat's (BYND) dip on May 11th? While my reasoning to invest in the company was long-term, it's doesn't hurt to see that the stock is up more than 9% today.
It got a nod of approval and upgrades from financial analysts, including Alexia Howard from Bernstein. The analyst's logic is that the restaurants' reopening would accelerate Beyond's revenue in the near future. This is precisely what Beyond's CEO said in the last earnings call.
Beyond Meat is, indeed, a good bet on the future of food, especially when it gets beaten down for no reason other than the market's pessimism.
What's Up - Part II
There is a short squeeze possibility for Virgin Galactic (SPCE) after the recent price rally.
We discussed Virgin Galactic (SPCE) on Friday. The stock jumped more than 27% today after it completed its first human test flight on Saturday.
Now the rumors have it that the company's stock is primed for a short squeeze. On the company's Stock Card, if you click on Sentiment, you can see more than 14% of the company's float (shares available for trading) is shorted. When the stock jumps a few days in a row, including today's rally, all those short orders have to buy the stock at the new price to return the shares they had borrowed when they bet against the stock. This is called covering shorts and typically pushes the company's stock price higher thanks to a sudden increase in demand.
The short squeeze isn't guaranteed because we don't know at what price the stock was shorted, but it is an interesting phenomenon to monitor in the market, especially if you own a few shares as I do.