3 Discount Retail Stocks Rocketing Higher After Economic Stimulus Plans Announced

Shares of Dollar General (NYSE: DG), Dollar Tree (NASDAQ: DLTR), and Five Below (NASDAQ: FIVE) shot up more than 12% today following a press conference in which the Trump administration announced substantial economic stimulus. This was especially welcome news for the retail industry, which is expected to be one of the hardest hit, behind hospitality and airlines.

Probably the biggest piece of the potential stimulus that has investors more excited about the prospects for these discount retailers is a proposal by lawmakers to provide American families with a cash payment of $1,000. This stimulus would be particularly welcome for people working the service-industry jobs that are highly exposed to closure due to efforts to contain the spread of COVID-19.

The administration is also reportedly continuing a push to cut the payroll tax that funds Social Security, but lawmakers' appetite for another tax cut -- particularly one that would be unlikely to really help those most at risk from the economic impact of coronavirus -- is said to be almost nonexistent.

Source Fool.com