AMC Entertainment Holdings Inc AMC shares are trading higher by 16.35% to $8.00 Tuesday afternoon. Shares of companies in the broader communications, media and entertainment industry are trading higher amid overall market strength as Treasury yields fall and equities continue to rebound following recent weakness.
Ongoing Fed policy tightening and inflation concerns have otherwise weighed on the sector and consumer spending outlook.
AMC may also be experiencing a short squeeze during Tuesday’s session. AMC has a total share float of 515.70 million, of which 100.10 million shares are sold short, representing 19.39% of shares sold short.
What Else?
A drop in treasury yields has helped lift the broader market in today’s session as the 10-year Treasury yield hit an intraday low of 3.583% Tuesday morning. The intraday drop in U.S. Treasury yields benefits companies such that, when interest rates otherwise rise, the value of future cash flows is reduced for growth stocks, which in turn lower the value of the stock.
Equities fell in September due to concerns over inflation, contractionary Federal Reserve policy and a potential recession. An economic slowdown could negatively impact discretionary spending.
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Image and article originally from www.benzinga.com. Read the original article here.