- How China Is Tightening Rules to Defend Its Supply Chains
- Fear of Shortages Boosts Global Factories, But Eurozone Activity Declines
- Oil Prices Climb as Cease-Fire Uncertainty Deepens
- Warsh Wants Fed Regime Change. Here’s Where to Start
- Trump’s Fed Chair Nominee Fails the Big Test
- The SEC’s Gag Rule: An Unconstitutional Bargain
- Fannie, Freddie to Accept ‘Predictive’ Credit Scores, US Officials Say
- Blackstone Distributable Earnings Rise, Revenue Climbs
- American Express Profit Rises on Premium Customer Strength
- In a Slow Market, Some Houses Are Still Selling Fast
- Trump’s Wage Cut for Foreign Labor Is a Gift to American Farmers
- Ben Sasse Couldn’t Care Less Where a Pancreatic Cancer Cure Comes From
- The Trump Administration Puts a Stop to United Airlines’ War on Competition
- Inside the White House Deliberations Over Rescuing Spirit Airlines
- American Airlines Lowers Earnings Goal as Fuel Bill Surges
- Why Diesel Has Become a Much Bigger Economic Problem Than Gasoline
- Billions in EV Write-Downs—and New Bonus Goal Posts for Detroit CEOs
- Tesla’s Spending Blasts Off. Maybe SpaceX Can Help
- Investors Fret Over Tesla’s $25 Billion A.I. Bet
- ChatGPT and Claude? The Real-World AI Action Is Elsewhere
- Nokia Reports Rising Sales From AI and Data-Center Customers
- California Is Ground Zero for the Growing Battery Backlash
- Shares of Apple Supplier STMicroelectronics Jump After Strong Quarter
- Netflix Boosts Stock-Buyback Program by $25 Billion
- Heineken Upbeat on Profit Plans Despite Continued Pressure on Beer Sales
- As U.S. Brands Stumble, China Wins Over Young Indonesians
- Some Labubu Dolls Contain Cotton Banned By Forced Labor Law, Testing Shows
Earnings latest: Tesla (TSLA) pares gains on capex plans, but points to AI profits and Cybercab production.
Bessent speaks: Many U.S. allies have asked for currency swaps amid economic turbulence from the Iran war.
Athleisure revival? Struggling to find its footing, Lululemon (LULU) has a new CEO and she's a former Nike (NKE) executive.
CAR crash!
What goes up must come down... especially if it's a meme stock. Shares of Avis Budget (CAR) have been on a tear over the past month, soaring some 600% from below $100 to over $700. The party finally came to an end on Wednesday, with the stock falling back to earth following a quick surge in the opening minutes. After all was said and done, the car rental company had tumbled by nearly 40%, shaving $270 off its share price and ending the session in the $400-range (CAR is down another 6% in premarket trade).
Sign of the times: Avis Budget has all the characteristics of a meme stock. The firm reported billion-dollar net losses over the past two years, while short interest has grown to a high of 25.55%, making it susceptible to significant short squeezes. Remember the "meme trade" of rival car rental chain Hertz (HTZ) in 2020? That run-up heralded the most famous "meme trade" of them all... GameStop (GME) in 2021. Back then, Avis also found itself on the Wall Street Bets list, with pump and dumps of the stock even cycling into 2022.
When traders get exuberant, like the rapid buy-the-dip action that followed the peak of the Iran war, silly money can send stocks on a ride. It's happening now and will likely happen again. Concentrated institutional ownership of Avis Budget hasn't helped the situation, with two hedge funds - SRS and Pentwater Capital - said to own 82% of the company, thereby limiting the available float.
Rental reckoning: Seeking Alpha analysts have been raising red flags on Avis Budget (CAR) the entire way up. Vittorio Bertolini cited short-squeeze risks in early April, Doug Collins warned of float mechanics earlier this week, and Investing Group Leader Ian Bezek sounded the alarm yesterday ahead of the massive plunge. The latter has also signaled caution regarding the fresh volatility surrounding Hertz (HTZ), as both car rental players remain on the radar due to recent demand fueled by airport gridlock and the partial government shutdown.
Here's the latest Seeking Alpha analysis
40%+ ROE Leaders: Stocks That Can Thrive In Volatile Markets
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Don't Get Too Comfortable: The Pullback Could Be Epic
The Trade Driving The S&P 500 Higher May Not Last
What else is happening...
HHS Secretary RFK Jr. would support banning junk food TV ads.
Marijuana MSOs surge as Trump set to formally reclassify cannabis.
Report: Meta (META) tracking keystrokes in AI training project.
GE Vernova (GEV) hits all-time high after Q1 beat and raise.
Lufthansa (DLAKF) cuts 20,000 flights to save on jet fuel costs.
U.S. government nears $500M rescue deal for Spirit (FLYYQ).
KALSHI fines three congressional candidates over insider bets.
Worries for Fair Isaac (FICO) amid new types of credit scores.
Navy Secretary is ousted amid clash with Pentagon leadership.
Energy crisis: UK telecom firms warn of mobile signal rationing.
Today's Markets
In Asia, Japan -0.8%. Hong Kong -1%. China -0.3%. India -1.1%.
In Europe, at midday, London -0.7%. Paris +0.2%. Frankfurt -0.4%.
Futures at 7:00, Dow -0.7%. S&P -0.5%. Nasdaq -0.4%. Crude +1.5% to $94.37. Gold -1% to $4,706.70. Bitcoin -1% to $77,498.
Ten-year Treasury Yield +1 bp to 4.32%.
On The Calendar
Companies reporting today include Intel (INTC) and Lockheed Martin (LMT).