Why Hertz and Luckin Coffee Are Soaring in Wednesday's Stock Market Rout
The stock market rally finally took a break on Wednesday morning, with major benchmarks falling as a host of worries plagued investors. Continued rising COVID-19 case counts and a downgrade of global economic growth prospects made market participants think twice about the bullish case that has helped send some indexes higher by 30% to 50% since March. Just before 11 a.m. EDT, the Dow Jones Industrial Average (DJINDICES: ^DJI) was down 507 points to 25,649. The S&P 500 (SNPINDEX: ^GSPC) fell 56 points to 3,076, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) gave up 145 points to 9,986.
Amid the tough conditions in the market, you might think that the companies that have seen their stocks drop the most recently would continue falling. Yet for rental car giant Hertz Global Holdings (NYSE: HTZ) and Chinese coffee company Luckin Coffee (NASDAQ: LK), Wednesday brought significant gains as shareholders looked for hope for their respective businesses to recover fully from their recent challenges.
Shares of Hertz Global Holdings soared as much as 70% Wednesday morning, reversing much of the stock's losses in recent days. Although Hertz has filed for bankruptcy, the rental car company has still attracted attention from investors who seem to believe that there might be something left for current shareholders even after paying off all of the company's creditors.
Source Fool.com
