Good morning and welcome to the stock market today! Investors have a lot to watch out for this week, including key updates from President Joe Biden and a slew of earnings releases from Big Tech. In the meantime, what will the stock market do today?
- The S&P 500 is down 0.11%
- The Dow Jones Industrial Average is down 0.1%
- The Nasdaq Composite is down 0.26%
So what will the stock market do today? Here are the top three stories.
What Will the Stock Market Do Today? Bitcoin Bounces Back.
No doubt one of the biggest stories in the stock market thus far is the bounce back in Bitcoin (CCC:BTC-USD). After a selloff, Bitcoin prices are now trekking back above $55,000. Other cryptocurrencies like Ethereum (CCC:ETH-USD) and XRP (CCC:XRP-USD) are also seeing gains.
What is behind the move?
Although there is plenty of reason to believe we are just seeing investors return to cryptos after a few headlines shook their faith, it also seems that Tesla (NASDAQ:TSLA) is playing a star role. This comes after CEO Elon Musk said during the Q1 earnings call that he believes in the long-term value of Bitcoin. The firm added Bitcoin to its balance sheet earlier in 2021, and rolled out payment integrations for its products. In its earnings call, it shared that it sold 10% of its Bitcoin holdings just to prove its liquidity. Musk said that he is maintaining his personal BTC holdings.
For Bitcoin bulls, it appears this was a much-needed vote of confidence.
One more story: Mastercard (NYSE:MA) also wants to up the ante in the crypto world. Today, the financial powerhouse announced it was working with Gemini to launch a crypto rewards card. Users will see up to 3% in rewards (all in the form of digital currencies) on their payments. According to Mastercard, this new offering makes sense, especially at a time when so many retailers are allowing crypto-driven payments.
Who Is Going to Walk Fido?
Not everyone is excited about the Covid-19 reopening story.
While consumers dream up vacations, social gatherings and the perfect outfits for their first day back in corporate offices, Fido is worried about losing out on near-constant companionship. For pet stocks, this could bring about a second era of gains.
Think about it. The first era of pet stocks success came in the early months of the pandemic. Stuck at home, and with more free time than ever before, many consumers headed to pet rescues to bring home a furry friend. Spending on food, vet appointments, toys and treats quickly followed. Pet stocks like Chewy (NYSE:CHWY) gained, as did penny stocks plays like Zomedica (NYSEMKT:ZOM). For investors, the logic was clear. Consumers love their pets and want the best for them. These underlying pet companies can help make that a reality.
Now, those consumers are starting to go back to work. Who will take care of Fido and Fluffy?
For many, the answer may be Rover. As the team at Robinhood Snacks puts it, Rover is like the Uber or Lyft of dog walking. Pet owners can connect to dog walkers, groomers, house sitters and even other pet owners for puppy play dates. Rover also happens to be planning on coming public through Nebula Caravel Acquisition (NASDAQ:NEBC). The company struggled during the pandemic, as many consumers realized they could walk their own dogs as they worked from home. Now, it looks like things are changing.
What is the takeaway? Pandemic recovery is just signaling a new era for pet stocks, one that could bring with it new opportunities like Rover. As you examine other investing themes that surged during the pandemic, try to treat them the same way and look for new paths forward.
P.S. Give your pup an extra treat today on my behalf.
Biofuel and Seaweed Stocks Get a Boost
Did you find yourself searching for seaweed stocks this morning? I know I did.
Not sure what I am talking about? Today, the Supreme Court will hear oral arguments from three petroleum refineries that want relief from biofuel requirements. As things stand right now, the Renewable Fuel Standard requires refiners to blend in biofuels like corn-based ethanol into their fuel. Another alternative allows refiners to purchase credits from other companies that do.
Today, three refiners are going to argue that these requirements place too large of a financial burden on their businesses. If they lose, seaweed stocks could get a chance to perk up.
Although there is not a direct link, the interest in seaweed stocks today likely comes from the fact that many see seaweed as a perfect source of biofuels. With this Supreme Court hearing today and more money flooding into biofuel research, it seems investors want to dig into the opportunity. So what should you do? Keep a close eye on what happens in the Supreme Court and start digging into biofuel.
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.