FX.co ★ Shaking the Markets: Meme Stocks and Biden's Incentives

1. Robinhood Meme Stocks Are Still Interesting

The retail frenzy that has inspired Reddit forum members encouraging each other to trade certain stocks through the Robinhood platform continues. GameStop Corp's shares soared another 19% on Wednesday, then went into negative territory and recovered in volatile trading after a rally that already doubled the company's market value.

Other meme stocks included Koss Corporation and AMC Entertainment Holdings Inc, which also traded insanely. AMC plans to report fourth-quarter earnings after the market close, and analysts hope to hear what CEOs have to say about the outlook after the pandemic.

2. Incentive-Fueled Trading Continues As Investors Look For The Next Winner

Incentives in the amount of $ 1.9 trillion will not only send $ 1,400 each into the pockets of people whose earnings do not exceed $ 80,000, but will also provide assistance to airlines and restaurants among the heavily affected industries. This could spur stocks such as United Airlines Holdings Inc, Southwest Airlines Company and Darden Restaurants Inc as resuming trading picks up steam. Banks are also trading higher. The signs of curbing inflation are beneficial to banks, but additional incentives may also be useful for bank card lending, car loans and home loans.

Retailers such as Kohls Corp and Walmart Inc can also benefit from additional consumer spending under the incentive bill. Further, there will be an opportunity to implement infrastructure projects that increase the shares of construction firms and manufacturers of building materials.

3. DraftKings is the winner of the sports betting legalization movement.

Online gaming, mobile gaming, and sports betting are gaining traction as more states in the US are considering legalizing this activity. The move sparked a furor among DraftKings Inc, which rose another 13% on Wednesday after multiple analysts raised their price target.