CNBC.com's MacKenzie Sigalos brings you the day's top business news headlines. On today's show, CNBC's Dominic Chu breaks down why traders have bought so much stock in bankrupt companies like Hertz and J.C. Penney, and how it can quickly become a losing game. Also, CNBC's Elizabeth Schulze explains how empty sports stadiums pose an imminent threat to city and county budgets, and why the whole situation could lead to higher local taxes for those residents.
Here's what you missed:
The hot new thing to make your stock pop: Go bankrupt
To get a slice of one of the market's most epic rallies, investors are snapping up stocks everywhere including shares in bankrupt companies, which in theory will be worth nothing.
Hertz, Whiting Petroleum, Pier 1 and J.C. Penney, which all declared bankruptcy amid the pandemic, saw their shares surging at least 70% each in Monday's trading alone, some of which more than doubling. Imminent bankruptcy filers Chesapeake Energy and California Resources also skyrocketed from a few pennies to a couple of dollars in a matter of days.
Texas reports two consecutive days of record coronavirus hospitalizations weeks after reopening
Texas has reported two consecutive days of record-breaking Covid-19 hospitalizations as the state continues to open businesses and resume activities that were temporarily shuttered due to the coronavirus.
There are currently 2,056 patients sickened with Covid-19 in hospitals across the state as of early Tuesday afternoon, up from a record 1,935 patients Monday, according to updated data from the Texas Department of State Health Services.
Amazon, Apple, Facebook and Microsoft closed at new all-time highs Tuesday, a day when the Nasdaq Composite Index hit a new record.
Big Tech stocks have fared better than most during the coronavirus pandemic as newly remote workers have had come to rely more than ever on online services. Thanks to their large market caps, they've also helped buoy the stock market, which has staged a comeback despite huge unemployment numbers sparked by widespread stay-at-home orders.
