Why Party City Stock Was Celebrating Today
Shares of Party City (NYSE: PRTY) rose as much as 11.4% on Tuesday before settling into an 8% gain as of 1:26 p.m. ET. The reasons for the rise were likely twofold.
First, on Tuesday, inflation numbers came in from the Bureau of Labor Statistics. While headline inflation of 8.5% came in slightly higher than expected, "core" inflation, which excludes volatile food and energy prices, came in at a 6.5% annual pace, which was slightly better (lower) than expected. That led to a rise in stocks, generally, but since Party City is a consumer discretionary stock with a high level of debt, it's particularly sensitive to macroeconomic conditions and interest rates.
Second, today's outsized rise may be piggybacking on yesterday's gain, when it was revealed that the company's largest shareholder bought about $1 million more in stock.
Source Fool.com
