What a busy way to kick off the trading week. Reddit stocks were back in the spotlight, cryptocurrencies were booming and a variety of electric vehicle stocks were creating buzz. Most importantly, investors had a lot to catch up on after the Good Friday trading holiday. So what did the stock market do today? Dive in with InvestorPlace below.
To start, investors should know that the major indices ended Monday in the green. The S&P 500 gained 1.44%, while the Dow Jones Industrial Average gained 1.13%. The Nasdaq Composite also was up, adding 1.67%.
So what else did the stock market do today? Take a look at the top three stories.
What Did the Stock Market Do Today? Buy Cryptos.
Today, the entire cryptocurrency market hit a market capitalization of $2 trillion, an all-time high.
Although Bitcoin (CCC:BTC) accounts for roughly half of the total, the leading cryptocurrency did not lead the way with gains today. BTC has been trading in a narrow range, still off its own all-time high above $61,000. It continues to hold steady above the $1 trillion market cap mark, but investors are more excited to find smaller names.
In fact, experts think that a new altcoin season is responsible for the market high.
Stellar (CCC:XLM) was a top gainer today, as was Tron (CCC:TRX), fresh off its three-year anniversary. XRP (CCC:XRP), still riding a bullish wave in its SEC lawsuit, gained nearly 40%. Lesser-known tokens like BitTorrent (CCC:BTT) and Stacks (CCC:STX) were also huge winners, posting gains of 22% and 86%, respectively. In comparison, Bitcoin added just 1% over the last 24 hours.
For investors, there are a wide variety of reasons behind the altcoin appeal. Bitcoin is starting to lose its market edge, and many want to find the next big cryptocurrency. The promise of getting in cheap — with some tokens trading for less than 1 cent each — holds appeal. Other investors are looking for specific technological advancements. Platforms that build on the capabilities of Bitcoin or promise to profit in a more eco-friendly way are generating attention. Stacks promises to facilitate smart contracts through the existing Bitcoin platform, and the new STX token is winning as a result.
Where should you look moving forward? Perhaps InvestorPlace contributor Chris MacDonald put it best. Focus on a basket of these high-risk, high-reward altcoins, and know that altcoin season could also come back around to benefit Bitcoin.
Homebuilder Stocks: Time to Dive In or Take Profits?
The housing market is on fire right now, and homebuilder stocks are in the spotlight as a result.
Individual homebuyers are coming to the market en masse, armed with record-low interest rates. Homebuilders are working to keep up, but supply faces real constraints. As Anna Bahney wrote for CNN, homeowners who recently refinanced or entered forbearance programs are not likely to sell right now. With the supply-demand equation out of whack, housing prices keep climbing. Bahney writes that is not likely to change anytime soon.
Houses up for sale are literally flying off the market. One listing in Washington, D.C. received 76 all-cash offers, ultimately selling for a price 70% above the asking price. In Conroe, Texas, a block of 124 new homes sold for $32 million. The buyer? Fundrise, an online property investing platform. The homebuilder of that block walked away with nearly twice its average profits.
Unsurprisingly, this reality has many analysts pounding the table on homebuilder stocks.
The SPDR S&P Homebuilders ETF (NYSEARCA:XHB) is at all-time highs. Other homebuilder stocks like Beazer Homes (NYSE:BZH), Toll Brothers (NYSE:TOL), Tri Pointe Homes (NYSE:TPH) and D.R. Horton (NYSE:DHI) are generating attention. One analyst wrote that most of these stocks are setting up for a big breakout.
So what should you do know? With the housing market continuing to heat up, it makes sense to keep an eye on homebuilder stocks. However, be sure to keep an eye on valuations, especially as homebuilders work to ramp up supply.
Google, Oracle and the Future of Innovation
Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL) got a big boost from the U.S. Supreme Court today. More importantly, the decision comes with a big victory for other smaller companies trying to innovate.
As Daniel Howley wrote for Yahoo Finance, the Supreme Court sided with Alphabet in its case with Oracle (NYSE:ORCL). The 6-2 opinion found that Google did not violate copyright law when it used Oracle’s Java application program interface to build the Android operating system. Justices called it a fair use situation, removing any need to receive permission from Oracle.
While GOOGL stock gained 4% on the day, Howley is quick to highlight that this is just one of many legal battles for Alphabet. Instead, investors can see this as a win for smaller tech companies hoping to innovate. The Electronic Frontier Foundation says it should give small companies the confidence to build on work from other businesses without fear of retribution.
In the short term, this may be a win for Big Tech. In the long term, consider this a win for the smaller companies that represent real growth potential. Like the way that sounds? Check out the ultimate guide to growth stocks from InvestorPlace analyst Luke Lango here.
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.
