HBI - What Sent These Consumer Goods Stocks Soaring Monday?
Shares of GameStop (NYSE: GME), Hanesbrands (NYSE: HBI), and The Michaels Companies (NASDAQ: MIK), a handful of consumer goods and retail businesses, all jumped well over 10% Monday afternoon, with GameStop and Michaels topping 20%, after investors seemed encouraged by COVID-19 data and some states' plans to cautiously reopen parts of their economy.
A likely driving force propelling the broader markets today was recent data from New York State. Gov. Andrew Cuomo announced the total hospitalization rate was essentially flat and that the death toll has continued to drop since its April 9 peak.
The improving trends have a small collection of states preparing to reopen parts of their economy with restrictions, part of a multiphase strategy to reduce social distancing while walking a fine line with keeping people safe and the spread of COVID-19 under control. The mere mention of states considering reopening parts of their economy sooner rather than later had shares of many hard-hit retail and consumer goods businesses jumping today.