GME Stock Surges 57%; Intel Switches CEOs

Although it’s a chaotic time in American politics, you wouldn’t know it by looking at Wall Street. As trading closed for the day, the U.S. House of Representatives was in the middle of voting to impeach President Donald Trump.

The vote passed by a 232 to 197 margin, with 10 Republicans joining Democratic lawmakers in the vote. Trump becomes the first president to be impeached twice. Markets were little-changed Wednesday, and in fact two of the three major U.S. indices finished the day higher.

The Dow Jones Industrial Average dipped 8 points, or around 0.03%, to finish at 31,060.

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Intel purges CEO, recruits old hand. Intel (ticker: INTC) shareholders were jubilant Wednesday, bidding the large-cap chipmaker and Dow component up 7% as the company announced CEO Bob Swan would be leaving and VMWare ( VMW) CEO Pat Gelsinger would be returning to attempt a turnaround.

Intel has lost its way in recent years, losing momentum and technological prowess under Swan’s roughly two and a half year stint. Last year, for example, the company announced it would have to push back the release of its next-generation 7-nanometer chips to 2022. Rivals like AMD ( AMD) had already begun shipping 7nm chips, and the news was seen as potentially indicative of a sea-change in the semiconductor space.

Gelsinger previously worked at Intel for 30 years and is trained as an engineer, giving shareholders reason for optimism.

GameStop soars; shorts get squeezed. One of Wall Street’s most interesting phenomena is the short squeeze, in which short sellers are forced to cover their positions swiftly (i.e. buy back the stock they’re betting against) to prevent losing more money as the underlying stock soars.

That dynamic was very much in play on Wednesday as shares of GameStop ( GME) jumped, advancing by more than 57% despite no meaningful breaking developments. GME has been on a tear that began Monday after word that Chewy ( CHWY) co-founder Ryan Cohen would be joining the board, along with two other former Chewy colleagues.

The prospect of remaking the video game retailer in the image of the customer-focused and highly successful Chewy has investors excited.

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