Good morning and welcome to the stock market today! Once you sort through this year’s wild and wacky Golden Globes attire, you will likely find yourself wondering: What will the stock market do today? With a third Covid-19 vaccine, a long report from the Oracle of Omaha and a never-ending cryptocurrency saga, there is quite a bit to watch. Dive into the top stories with InvestorPlace below.
To start, the top movers this morning are all over the place. Nio (NYSE:NIO) is racing higher after the Chinese electric vehicle company announced European expansion plans. Holicity (NASDAQ:HOL), a space SPAC, is climbing on news of a NASA deal. And SOS (NYSE:SOS), a Chinese crypto mining play, seems to be recovering from a short-selling report.
So where do the rest of the top movers come from? And what else will the stock market do today? Prep your portfolios with these three big stories.
What Will the Stock Market Do Today? Take a Shot.
Want a shot?
Thanks to Johnson & Johnson (NYSE:JNJ), it will be easier than ever before to get one. On Saturday, the U.S. Food and Drug Administration issued an emergency-use authorization for a third Covid-19 vaccine. Coming from the Janssen unit of Johnson & Johnson, this vaccine brings with it many benefits. Unlike vaccines from Moderna (NASDAQ:MRNA) and Pfizer (NYSE:PFE), recipients need just one dose. And also unlike Moderna and Pfizer, its vaccines have less stringent transportation and storage requirements. With talk of corrupted shipments, this should ease consumer fears and help speed up the rollout.
According to the FDA, the Johnson & Johnson vaccine uses a specific type of virus called adenovirus type 26 (AD26). The vaccine uses AD26, delivering a piece of genetic material that replicates the spike protein of Covid-19. This triggers an immune response in recipients, ultimately helping protect the body from the virus causing Covid-19. Investors should note that this is different from the mRNA vaccines from Pfizer and Moderna.
With doses ready to roll out, the story here is that Johnson & Johnson can help ramp up the reopening story. More doses that are easier to administer mean that more Americans can quickly receive protection from Covid-19. Add in stimulus measures from Congress and the Federal Reserve, and bulls are hopeful the pandemic will soon be in the rear-view mirror. With that in mind, reopening plays like Carnival (NYSE:CCL), American Airlines (NASDAQ:AAL) and AMC Entertainment (NYSE:AMC) are all rallying this morning.
JNJ stock itself is up 1.4% at the time of writing.
Warren Buffett and the Old-Fashioned Crystal Ball
Morning Brew put it best. On one hand, you have Roaring Kitty and r/WallStreetBets. On the other, you have Warren Buffett and businesses like See’s Candy. And if you were hoping to see those worlds collide in Buffett’s annual letter, you’ll be disappointed.
To be fair, Buffett touched on some great news for Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B). He hyped up his conglomerate strategy, shared good news about businesses like See’s Candy and GEICO, and affirmed his America-first mentality. Top common stock investments include giants like Apple (NASDAQ:AAPL), Bank of America (NYSE:BAC) and Chinese electric vehicle play BYD (OTCMKTS:BYDDF). However, the list of topics he did not discuss is raising eyebrows.
Absent from his annual letter is any mention of special purpose acquisition companies, Reddit or GameStop (NYSE:GME). He also hardly touches on themes like Covid-19 and ongoing protests for racial justice. Plus, this letter comes just days after his long-time partner Charlie Munger took a swing at hot topics like SPACs, GME and Bitcoin (CCC:BTC). While no one likely expected Buffett to make a big bet on Dogecoin (CCC:DOGE), his guidance is so valuable. With none of that guidance to apply to top themes, investors could see him as a bit out of touch.
So what should you watch? Buffett, Munger and Vice Chairmen Ajit Jain and Greg Abel will take the stage in Los Angeles on May 1 for their annual meeting. There, you can expect more commentary (and maybe some peanut brittle). And in the meantime, keep an eye out for more zingers from Buffett and Munger.
Bitcoin Highs and Lows
Bitcoin bulls can breathe a sigh of relief. At the time of writing, BTC is up 9% and is trading above $48,000. It appears that the leading cryptocurrency is ready for a rebound, just days after pulling off its new all-time highs.
Importantly, the pullback did not shake the growing crypto enthusiasm. Coinbase revealed more details about its IPO plans. Another exchange, INX, is planning to list on the Toronto Stock Exchange for more legitimacy. Grimes, a talented musician and the girlfriend of Elon Musk, auctioned off several NFTs.
Today, a new report from Citi does even more to boost the Bitcoin catalyst. In the 108-page release, Citi highlights that Bitcoin is at a “tipping point” and ready to enter the mainstream. Does that sound familiar? Almost all of the recent Bitcoin price predictions hinge on this mainstream awareness. With Citi pounding the table for BTC, those predictions could soon come to fruition. Goodbye $48,000, and hello $600,000!
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.