Why Movie Theater Stocks Soared Today
Movie theater stocks including AMC Entertainment (NYSE: AMC), Cinemark Holdings (NYSE: CNK), Marcus (NYSE: MCS), and National Cinemedia (NASDAQ: NCMI) were all moving higher today after the May employment report was much better than expected.
The unemployment rate fell from 14.7% in April to 13.3% in May, while economists had expected it to increase to nearly 20%. At the same time, the economy added 2.5 million jobs as businesses began to reopen following lockdowns in March and April. It was a strong sign that the economic recovery is well under way, and investors reacted enthusiastically, sending shares of hard-hit stocks like movie theaters and other consumer discretionary companies surging.
As of 11:16 a.m. EDT, AMC shares were up 10%, Cinemark had gained 8.8%, Marcus was up 12.8%, and National Cinemedia was trading up 14.9%.
Source Fool.com
