What a busy, cryptocurrency-filled week in the stock market. Investors have been dreaming of Shiba Inu puppies and rocket ships, and they may be using their big gains to fund weekend getaways. So before you log off for the weekend, what did the stock market do today?
To start, the major indices rallied on Friday, with the S&P 500 and the Dow Jones Industrial Average hitting fresh highs. Corporate earnings and better-than-expected economic reports helped fuel these gains. The S&P 500 added 0.36% today, while the Dow added 0.48%. The Nasdaq Composite also gained, adding 0.1%.
So what did the stock market do today? Here are the top three stories.
What Did the Stock Market Do Today? Go Crypto Crazy.
A colorful cast of characters stole the spotlight in the stock market today. Slim Jim. Coinbase. Robinhood. Dogecoin. Elon Musk. The end result? A meme coin rocketing to all-time highs and prompting investors to wonder just what will come next in the cryptocurrency space.
Dogecoin (CCC:DOGE-USD) climbed as high as 43 cents at one point in Friday trading, and its market capitalization soared. At one point, DOGE was just below XRP (CCC:XRP-USD) in a list of top cryptos by market cap. Robinhood dropped the ball on crypto trades, and investors focused on how recently public Coinbase (NASDAQ:COIN) missed out on major revenue, as the exchange does not facilitate Dogecoin trades. Slim Jim said it had a whole strategy based around DOGE, and Elon Musk upped his meme game once again.
So where do things go next?
On one hand, investors are worried about the crypto bubble bursting. Dogecoin is already starting to cool off, and some are worried that Coinbase goes against the values of digital currencies. Some bears are saying that BTC could lose as much as 80% of its value by the end of the year. Talk of crypto bans in India and Turkey are also weighing on the space.
On the other hand, signs of mainstream support continue to grow for cryptocurrencies. A wide variety of altcoins continues to gain, with names like VeChain (CCC:VET-USD) and Bitcoin Cash (CCC:BCH-USD) rallying on Friday. Plus, new investing vehicles like exchange-traded funds continue to make their way to retail investors. Just today, Canada signed off on two Ethereum (CCC:ETH-USD) ETFs. Will the United States soon do the same?
Goldman Sachs Edits Wall Street DNA
Today, some of the non-crypto movers in the stock market were so-called CRISPR stocks. These are all companies hoping to commercialize the science of gene editing, a revolutionary science.
So where did the big moves come from? Goldman Sachs analyst Madhu Kumar served a blow to sector leader Editas (NASDAQ:EDIT), sending EDIT stock down more than 15% on Friday. Editas has a variety of therapies in its pipeline that hope to use gene editing to address rare diseases. Its lead candidate is a proposed treatment for congenital amaurosis, an eye disorder that can cause blindness and other vision issues. Kumar cut his target on Editas to $20, expressing skepticism that this treatment will prove effective.
Unsurprisingly, doubt from Goldman Sachs is a powerful downside catalyst. Other CRISPR stocks like Intellia Therapeutics (NASDAQ:NTLA) and CRISPR Therapeutics (NASDAQ:CRSP) also plunged in sympathy with Editas. It seems that investors were finding their confidence shaken in these emerging equities.
So what should you do moving forward? InvestorPlace analyst Luke Lango has a quick answer: Buy the dip in EDIT stock. Lango writes that Kumar was too harsh, and that the analyst has been wrong on Editas before. Although the downgrade is certainly affecting the company in the near term, Lango does not think this meaningful impacts the story for Editas or gene-editing. And importantly, Lango is not alone. Cathie Wood of Ark Invest has repeatedly said that gene editing stocks are an opportunity she is bullish on for 2021 and beyond.
Winners, Losers, Honorable Mentions
Winners: There is no denying that Dogecoin is the winner of this week. The meme coin set a new all-time high above 40 cents, racked up celebrity backers and captivated its social media army. In just the past seven trading days, DOGE is up more than 400%. Find out what to do with your Dogecoin holdings next here.
Losers: In many ways, Coinbase was a winner this week. It brought a meteoric direct listing to Wall Street, and talking heads called it a coming-out party and debutante ball for cryptocurrencies. Overtaking oil companies and Nasdaq (NASDAQ:NDAQ) itself in terms of market capitalization, Coinbase is no small beast. However, facing sky-high expectations for its direct listing, Coinbase has struggled to deliver. Shares closed Friday at $340, below its debut price.
Honorable Mentions: Guy Fieri deserves a shout out for his particularly on-brand support of Dogecoin. Slim Jim also stands out this week, name-dropping Dogecoin in a corporate earnings call and using its social media to give the meat sticks a Gen Z feel.
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.