Why Coty, Crocs, and Foot Locker Jumped 10% Tuesday
Shares of Crocs (NASDAQ: CROX), Coty (NYSE: COTY), and Foot Locker (NYSE: FL), an assortment of retailers, jumped 10% or higher Tuesday morning as the markets received positive news about consumer sentiment and COVID-19 vaccines.
Retailers got a little spark of hope Tuesday when U.S. consumer confidence moved slightly higher in May, suggesting the worst of the economic impact could be behind us as more states open up parts of the economy and reduce restrictions. Consumer confidence moved to 86.6 in May, up from the downwardly revised 85.7 recorded in April.
On the COVID-19 front, Novavax said it began human testing with one of its coronavirus vaccine candidates and could have trial data as soon as July. Merck announced on Tuesday it was working with partners to develop a vaccine and antiviral treatment. "Net, net, the worst may be over for the economy if new home sales and consumer confidence are important for setting the economy's sails in a new direction away from the stormy seas of recession," Chris Rupkey, chief financial economist for MUFG Union Bank, told Yahoo! Finance (a subsidiary of Verizon).
Source Fool.com
