So what did the stock market do today? We saw another negative-to-positive reversal, a rally in reopening stocks and some chatter about cryptocurrencies. If you want to catch up on the news, and figure out how to profit, dive in below.
To start, some of the top movers from today stayed the same. Workhorse (NASDAQ:WKHS), Fisker (NYSE:FSR) and Oshkosh (NYSE:OSK) removed at the top of the charts. Dogecoin (CCC:DOGE) made an unexpected shot for the top, thanks to tweets from Elon Musk. This came alongside a slight recovery in many top cryptocurrencies.
So what else happened? And where did these top movers come from? Here are three big stories you need to know to understand the market moves.
What Did the Stock Market Do Today? Reverse.
Yesterday sowed seeds of fear and doubt in the stock market. Favorite equities like Tesla (NASDAQ:TSLA) plunged, and cryptocurrencies also took a dive. Fears of inflation were captivating investors, and concerns about valuations were ringing loud and clear. Then, seemingly out of nowhere, the market started to reverse. Tesla still closed down, but it trimmed its losses significantly. Bitcoin (CCC:BTC) pulled up off its lows near $44,000. Tech stocks similarly rose back toward break-even levels.
What did the stock market do today? Something very similar, and because of that, InvestorPlace analyst Luke Lango thinks we are seeing nothing but bullish action.
Another massive reversal in $QQQ $SPY $DJI today. Back-to-back days of 1%+ negative-to-positive swings. Last time this happened? October 29/30, at the end of a two-week sell-off & beginning of a new uptrend. This is #bullish price action. Got your buy list ready?
— Luke Lango (@LukeLango3) February 24, 2021
As he wrote, the last time we saw this type of negative-to-positive swing was at the end of October 2020. After that, a new uptrend took hold and brought the major indices to new all-time highs. Follow Lango, and make sure your buy lists are ready.
Reopening, Reopening, Reopening
If you say it three times fast, can you make the reopening narrative speed up? It seems like that is what many investors are trying to do on Wall Street. After a slight pullback yesterday, many reopening trades are racing higher again on Wednesday.
Airline stocks got another boost, following a sector-wide upgrade from Deutsche Bank. Easing lockdowns in the United Kingdom, a vaccine from Johnson & Johnson (NYSE:JNJ) and a $1.9 trillion stimulus proposal are lifting the sector. Stabilizing cash burn rates are helping cruise stocks. Airbnb (NASDAQ:ABNB), ahead of its fourth-quarter report, is inspiring analyst confidence.
All of these stocks are benefitting as investors start betting on reopening. As we wrote on Monday, it makes a lot of sense. When we can safely reopen and return to business as normal, that means we will start flying again. We will book cruises, and we will go on vacations. We will go from weekends spent in tiny treehouses to long, international vacations. And we will see consumer spending and behaviors adjust as that pent-up demand gets realized.
Keep an eye on these reopening plays now. Things are only going to heat up.
Solar Stocks Emerge as Texas Winners
As InvestorPlace Markets Analyst Thomas Yeung wrote earlier this week, investors are racing to find the winners and losers from the energy crisis in Texas. While Republican pundits blamed it on renewable energy, temporarily causing a plunge in stocks like Plug Power (NASDAQ:PLUG), those renewable energy stocks might actually be winners.
In fact, Wall Street is identifying solar stocks as a top play emerging out of the crisis. A combination of unprecedented weather events from climate change and concerns over a struggling energy grid have prompted the interest. And now, analysts think that consumers will start to take matters into their own hands. To do so, they will acquire energy storage solutions. Or, they will for something with distributed generation, like wind or solar. Along those lines, Morgan Stanley identified Sunrun (NASDAQ:RUN), SunPower (NASDAQ:SPWR) and Sunnova (NYSE:NOVA) as likely winners.
We may have seen the start of this rally today. Sunworks (NASDAQ:SUNW), another provider of residential solar solutions, shot up more than 20%. SUNW stock has long been a retail investor favorite, so keep it on your radar. Do the same with other solar stocks.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article.
Sarah Smith is a Web Content Producer with InvestorPlace.com.