Supply chain issues, unusual stock market activity as US prepares to reopen
CHICAGO - As the U.S. prepares to reopen, supply chain issues have been reported along with other unusual stock market activity.
"We have some supply chain issues, and we also have to be worried about the food chain after Russian hackers shut down JBS, the biggest meat processor in the country," said FOX Business Analyst Phil Flynn.
Beef and pork prices are jumping right now not just because restaurants are re-opening, but in the wake of the JBS cyber attack, which the FBI today attributed to a group believed to be based in Russia. Expect to pay more for meat and don't be surprised to see price jumps early this summer on essentially any product that needs to be shipped.
"It shows how vulnerable we are right now. During the COVID shutdown, we had a big shock to the supply chain and I think it unveiled the fact that we didn't invest enough in the supply chain in the first place," Flynn said.
It was a wild day on Wall Street as AMC Entertainment Holdings, the struggling movie theater chain, became the newest 'meme stock' - with individual investors on Reddit causing its stock to nearly double today.
"What happened is this massive "buy" signal from these Reddit traders, these traders that have changed capitalism as we know it. Taking shares of stocks of companies that a lot of people thought would be dead," Flynn said.
Wednesday's AMC frenzy triggered several halts in trading.
"It's kind of interesting to see how this plays out but I think it's a big win for the small investor. I'd like to see more of this as we go forward," said Flynn.
AMC and other theater chains saw their business effectively shut down during the pandemic; this is the latest case of Redditors and social media coming to the rescue and breathing new life into certain beloved brands as the economy reopens.