Welcome to the stock market today! Once the tweens in your life finish explaining the Roblox (NYSE:RBLX) IPO hype to you, you will realize there is quite a bit happening on Wall Street. So what will the stock market do today?
To start, take a look at top movers. In all seriousness, Roblox is proving to be quite powerful. The gaming and game developing platform saw huge growth in the first months of the Covid-19 pandemic. It resonates with younger consumers, and promises to expand its revenue sources now that it is public. If you want to get in on the hype, here is a list of 12 things to know.
Other top movers today include Sundial Growers (NASDAQ:SNDL), which is falling after a retail investor rally yesterday. MediciNova (NASDAQ:MNOV), a little-known biopharma, is rallying after receiving a deal from BARDA.
So what else will the stock market do today? Take a look at these three top stories.
What Will the Stock Market Do Today? Buy the Dip.
The sun is still shining, and investors are still buying the dip.
As we reported yesterday, even though the major indices are recovering from a selloff, several stocks remain deep in the hole for 2021. This list includes tech darlings like insurance play Lemonade (NYSE:LMND) and C3.ai (NYSE:AI). Investors bought on the dip, and continue to pile into opportunities. As Myles Udland wrote for Yahoo Finance this morning, it makes sense. History tells us that when the Nasdaq quickly falls into correction territory, the months that follow deliver delightful gains. Now that the sense of panic is subsiding, investors are hungrily searching for these opportunities.
Why? The $1.9 trillion stimulus proposal is making its way to the finish line. Today, lawmakers in the U.S. House of Representatives are set to vote on the bill. With a Democratic lead, the legislation is expected to pass.
Although the sheer size and scope of the bill has sparked a fair share of the inflation concerns, the proposal also promises to spark the economy. We will see another round of direct payments (this time for $1,400). Plus, we will see enhanced federal unemployment benefits, funding for schools and new resources for testing and Covid-19 vaccination clinics. With an ongoing vaccine rollout and talk of reopening, this bodes well.
One thing to watch? Not everyone on Wall Street is ready to buy into the change in sentiment. Antoine Bouvet, a senior rates strategist at ING, expects the yield on the 10-year U.S. Treasury note to keep climbing. His predictions call for yields to hit 2% at the end of the year. During the second quarter, however, he says yields could spike above that number.
Grayscale Wants to Make History
Bitcoin (CCC:BTC) is not backing down. On its way back to all-time highs, BTC has currently hit $56,000, its latest milestone in a recovery rally. This comes with a broader bullish shift in market sentiment and hopes for further Covid-19 stimulus.
The bullish move in Bitcoin also brings with it a series of catalysts for cryptocurrencies in general. Remember, the last few months have seen cryptos seriously move into the spotlight. Financial institutions continue to integrate them, and companies like Tesla (NASDAQ:TSLA) and the Mavericks are accepting cryptos as payments for products.
Now, the folks behind the Grayscale Bitcoin Trust (OTCMKTS:GBTC) are looking to make a big move.
According to a new report from CoinDesk, the digital asset management firm has advertised a series of job postings related to exchange-traded funds. This has many crypto experts speculating that Grayscale is trying its hand at a Bitcoin-related ETF. The first such North American fund recently launched in Canada, but attempts in the U.S. have faced pushback. Could Grayscale be the first to break through?
Investors should note that with great hype comes the potential for regulation. Lawmakers just introduced a bill that would clarify crypto regulations, such as when regulators could consider them a security instead of a commodity.
What Is Happening With General Electric?
It is not every day that you see good old General Electric (NYSE:GE) on a top movers list.
General Electric dropped quite a bit of news on Wednesday morning. Following up deal speculation, it confirmed it would sell its jet-leasing business to AerCap (NYSE:AER). This follows up on an ongoing transformation plan at GE. It will help reduce some debt, and thanks to the AerCap purchase, will give it more money to fuel future growth. For AerCap, the deal means a larger share of the jet-leasing pie.
But according to some experts, a plan for a 1-for-8 reverse stock split is the biggest news item. General Electric says it is considering the move, which would take GE stock to $112. It would also reduce the number of outstanding shares from 9 billion to 1.1 billion.
Why would General Electric do this? One answer is simply for appearances. As Al Root wrote for Barron’s this morning, companies like to keep their stock prices in line with peers. Many GE competitors have stocks trading between $100-$200. GE stock may just want to artificially “catch up.”
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.
