A new term is hitting financial markets called "swarm trading." We've seen the trend many times over the past year, ranging from the GameStop and AMC short squeeze to the Hertz bankruptcy bid-up and Kodak craze that preceded it. Other events that did not fare as well was the highly publicized "Doge Day" this week that was supposed to take the crypto to $1. The tactic sees people pile into these names, ignoring fundamentals, technicals and other catalysts, until the last trader is left holding the bag. One example, Hometown International a deli located in a Philly suburb called Paulsboro, generated only $35,748 in sales over the last two years, but is publicly listed and valued at over $100M.
The U.S. jobs market recovery accelerated its pace last week as fewer Americans headed to the unemployment line, the Labor Department reported Thursday. First-time claims for unemployment insurance totaled 547,000, well below the Dow Jones estimate for 603,000 and a new low for the Covid-19 pandemic era.
In earnings news: American Airlines posted its fifth consecutive quarterly loss on Thursday, while Southwest Airlines swung to a profit, boosted by federal payroll aid. Both carriers have noted an improvement in travel bookings and plan to increase flying during the peak spring and summer months as more people are vaccinated against Covid-19 and tourist attractions reopen.