Why These Retailers Surged Monday

Shares of Camping World holdings (NYSE: CWH), Signet Jewelers (NYSE: SIG), and GameStop (NYSE: GME), various brick and mortar retail chains, are all jumping at least 12% higher Monday as many stocks traded on the hopes of the economy reopening and a possible new discovery about the spread of COVID-19.

There are a number of recent driving forces that have many travel, transportation, entertainment, and hotel stocks, among many others, moving higher. One development was a shockingly strong May jobs report when 2.5 million nonfarm payrolls were added, far better than the forecast for 7.5 million job losses. Another positive bit of news came from Cheesecake Factory, which noted its recently reopened stores had already recaptured about 75% of prior-year's sales. Even the beaten-down airline industry had positive news when American Airlines Group said it would boost July flights 75% compared to June.

All of those developments suggest that the economy could be prepared to rebound sooner rather than later. That's great news for retailers of all kind, especially brick and mortar retailers, such as Camping World, Signet Jewelers, and GameStop. There could be further reason for optimism Monday as World Health Organization officials announced COVID-19 patients without symptoms aren't driving the spread of the virus. Officials noted that asymptomatic spread can occur, but it's not the main way the virus is being transmitted. The reason this is important is because if asymptomatic spread isn't the main driver, that could remove the biggest reason for social distancing and thus provide a boost of energy to the economy.

Source Fool.com