Why Carnival, Peloton, and MGM Resorts Are Soaring On Tuesday
Shares of stocks tied to consumer spending are moving higher on Tuesday on some positive economic news out of the U.S. and China. But the market's optimism soon wore off when investors realized that good economic data likely means we'll see an increase in short-term interest rates from the Federal Reserve tomorrow.
Shares of Carnival Corporation (NYSE: CCL) were up as much as 4.9% in morning trading. MGM Resorts (NYSE: MGM) was up 3%, and Peloton Interactive (NASDAQ: PTON) jumped 7.4%. Shares were up 1.8%, 1.8%, and 7% respectively at 2:20 p.m. EDT.
The Purchasing Managers' Manufacturing Index, or PMI, was 50.4 for October, which was above the estimate of 49.9 from analysts. A reading below 50 for the index indicates manufacturing is slowing, while above 50 indicates growth. The beat on this index was small, but even a little growth is seen as a positive sign in this market.
Source Fool.com
