Stock Market Today
The Dow Jones, S&P, NASDAQ and the Russell 2000 all rocketed today. The Dow Jones average has jumped over 1100 points in the last 2 day. It’s a significant rally and investors appear to be excited and optimistic.
The Omicron virus doesn’t appear to be that potent. Biotech firms have created anti-body treatments that appear to be effective for that strain of Covid. So far today, it’s therapeutics stocks that are surging. Omicron could be a treatable strain and that opens up profitable opportunities for these pharmatech firms.
Top stock today? Trupanion, which sells insurance for pets. Makes perfect sense doesn’t it?
The S&P is up 2% on the day and the NASDAQ has risen 3% this morning after only a hour of trading. The Russell 2000 index is up almost 3% as well, a very good sign going forward. Oil price is up +2.66 to $72.15 on the news and with the Saudis deciding to raise prices to China. In addition, the conflict between the US and Iran is increasing which could mean Iran’s oil could be locked in and not part of global supply. The President is about to have a stern warning to Russia about invading the Ukraine, and that won’t go well. One more signal of higher oil and energy prices ahead.
The trend is good for the outlook ahead for tomorrow and the rest of the week.
Best Stocks Today
With Corona out of the way today, there is little in the road for the world to regain momentum economically. So this may be the key turning point, even though the winter may see some outbreaks of Omicron. It could be this winter is the end of it.
Top Rising S&P Sectors Today
Technology, energy and Consumer discretionaries are leading the way today.
It’s been a good two days for the Faangs, as Apple, Google, Amazon, Facebook and Tesla, have been rising well. Monopoly power means getting back to printing money. Right now, they’re all buying back their own stock to avoid Biden’s taxes. But 2022 will happen and we’ll likely see the monopolies crash hard.
There’s no call from the US government regarding monopolies but you’ve seen a nobody like Elizabeth Warren ride to superstardom by pretending to be a guardian from the monopolies. It will happen with someone.
Evergrande a China real estate developer has liabilities of $300 billion and it’s believed they can’t make their payments. Their stock dropped 22% today, in one day. In a Yahoo Finance reports, Leland Miller, CEO of China Beige Book said “There’s going to be a lot of pain — almost everybody involved with this is going to get a chunk taken out of them, if not worse,” They believe the Chinese government won’t step in to save the company.
Even with the mayhem this week, investors still don’t take the stock market crash threat very seriously. We’ll see if today’s upward trend has any legs. Check out more on the US stock market outlook and the new 5 year prediction along with a check on Bitcoin.
Read more on the 3 month forecast, 6 month forecast and check out signals for an impending stock market crash. It’s not likely until 2023 and most indicators are solid. Check out the full stock market forecast and predictions.
It’s quiet and investment eyes might turn to the housing market given home prices could rise this summer. Homebuyers are asking if home prices will fall, but that’s so unlikely, most experts have stopped talking about it.
The conflict however will prevent investors from feeling good about committing to their investment choices in the US stock markets. Without stimulus this summer, the recovery may not be what Americans are hoping for.
By end of trading Friday, we had some record highs. The Dow Jones hit 34,433.84 points while the S&P reached 4,280.70. The NASDAQ didn’t fare as well dropping to 14,360.39 and the Russell 2000 stayed level at 2,334.40.
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Powell also predicted inflation this year might reach 3.4% but will fall back down near the 2% target the Fed is targeting. May’s CPI was 5% which is running too high for some, but if it is transitory, no statement of rising rates was needed. Powell spoke in a stuttered fashion throughout his speech, which suggests doubts and uncertainty, or that political pressure is being applied.
Aberdeen Standard Investments deputy chief economist James McCann commented that “This is not what the market expected. The Fed is now signaling that rates will need to rise sooner and faster, with their forecast suggesting two hikes in 2023.“
A Bit of a Bubble for Bitcoin
Bitcoin and other Cryptocurrencies have been the most volatility investment. Bitcoin plunged last weekend to about $42,000 but it’s climbing back over $50,000. There are a lot of regulatory issues for cryptocurrency and backers say it will just blow over opposition and technical drawbacks.
China is reinforcing its ban on cryptocurrency for sales transactions. That’s not good news for the crypto crowd, however China is likely pushing for their own cryptocurrency (as the US Fed is) which they hope might become the world standard (with a backdoor perhaps?)
ARK investment Funds Cathie Wood was sticking her neck out with a $500,000 forecast for Bitcoin. There are others who forecast $700,000 for Bitcoin, so many are tempted to invest in Bitcoin stocks, and waiting for a dip in price. Woods never really explained the macroeconomic, banking, and transactional underpinning’s of Bitcoin rise to dominance. Given the volatility, not many other investors feel as confident of its long term price growth.
According to MarketWatch, stocks fell Tuesday against as “upbeat corporate results and expectations for a booming economic expansion in the wake of the COVID-19 pandemic competed with worries about lofty valuations and signs of accelerating inflationary pressures.” And the correction continues. This is quieter than expected, so is the real “correction event” or will all of this blow away, given how strong earnings reports are?
Volatility Up, with Downturns
Today and yesterday highights the volatility of the markets and how the Covid virus has dominated our civilization for almost 2 years now. It’s sad but investors seem to feel the end may be near now. Everyday, it’s some temporary struggle of indicators. There’s lots of noise happening, however you really should recalibrate every so often to ensure you’re investing smartly. Is the daily volatility concerning? Okay, then digging in deeper in to the Dow Jones, S&P, Russell and NASDAQ is important.
The stock market changes daily, weekly and seasonally. Let’s see what the real time data says, and then look deeper at what that really means. If you’re real time day trader/gambler, your strategy success depends on price trends which can be sudden macroeconomic reports, political speeches, Fed announcements, and other news.
Keep in mind that many of the stock market events today are politically motivated attempts to manipulate public perception. It’s shallow propaganda and this is where inexperienced investors lose their shirts. Be careful accepting news site reports. They live on hype. Dig deeper and know what you’re doing with your equities investments.
Real Time Quotes or Enduring Value?
Investors want real time up to date price quotes on stocks, but what’s more important are price trends. A few cents here or there aren’t going to make much difference in your investment value and strength for the long term.
Day traders look to events happening this week that will send the stock market up or down. It’s an approach that may work well, and if it didn’t they wouldn’t be day traders for long would they? Some watch stock price reports during the day while others watch for key factors that will push the price up or down in the next week.