Why Avis and a Bankrupt Rival Are Soaring Friday
Shares of Avis Budget Group (NASDAQ: CAR), a vehicle rental company, bounced as much as 18% higher Friday. This came after a surprisingly positive jobs report electrified the markets, and investors began to hope for a quicker-than-anticipated economic recovery.
Jobs reports from the Department of Labor have been consistently shocking of late, but Friday the markets were shocked in a good way: The report showed a surprise 2.5 million rise in non-farm payrolls, a vastly favorable result compared to the anticipated 7.5 million loss in non-farm payrolls. The result sent the unemployment rate down to 13.3%, below April's 14.7% and well below the anticipated 19% for May. What this positive jobs report emphasizes is that the economy began reopening and rehiring faster than previous jobless claims figures suggested.
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Source Fool.com
