Good morning and welcome to the stock market today! Retail sales are grabbing headlines this morning, with that figure up 9.8% in March thanks to stimulus checks and restaurant spending. Initial jobless claims are also captivating, coming in at a pandemic-era low at just 576,000 claims for the past week. So what else will the stock market do today?
To start, the major indices are all in the green, responding to the boost from retail sales and initial jobless claims. The S&P 500 is up 0.66%, while the Dow Jones Industrial Average is up 0.67%. The Nasdaq Composite is also up 0.97%.
So what will the stock market do today? Here are the top three stories.
What Will the Stock Market Do Today? Talk IPOs.
Coinbase (NASDAQ:COIN) dominated the news cycle yesterday, with shares first trading hands for more than $380 each. The second-largest cryptocurrency exchange ramped attention in all things crypto, boosting other exchange tokens, Bitcoin (CCC:BTC-USD) and even the meme Dogecoin (CCC:DOGE-USD).
Today, investors have a new handful of initial public offerings worthy of attention. These offerings may be smaller than Coinbase, but each capitalizes on a disruptive theme. Tiny Esports Technologies (NASDAQ:EBET) is in the online gambling space, facilitating betting on esports like League of Legends. TuSimple (NASDAQ:TSP) is all about self-driving trucks. Applovin (NASDAQ:APP) promises to leverage interest in the software behind mobile applications. Agilon Health (NYSE:AGL), which also starts trading today, says it can transform healthcare, particularly for seniors.
Beyond the fact that this week is buzzing with red-hot offerings, what should investors take away?
Well, the rush of initial public offerings does not appear to be slowing down, and even more big companies will debut later this year. This list includes household names like Robinhood, Plaid and even potentially Starlink. Investors have been gobbling up newly public companies, and demand for IPO stocks has even led some companies to debut earlier than expected.
Want to play this IPO frenzy? As the team at Robinhood Snacks writes, you should buy bank stocks. JPMorgan Chase (NYSE:JPM) just reported a record quarter, with investment banking revenues more than tripling. Goldman Sachs (NYSE:GS) reported a similar record quarter, with investment banking revenue up 73% year-over-year. Robinhood Snacks says that these big banks are the picks-and-shovels plays behind the IPO boom… and they are only getting bigger.
Shopaholics Take Wall Street
The pent-up demand theme remains strong, as Covid-19 reopening spurs a shopaholic season.
Investors have looked at pent-up demand for travel, and how that has already benefitted cruise stocks, airline stocks, hotel stocks and so much more. We wrote last week that cosmetics stocks like Estee Lauder (NYSE:EL) could also see a boost, as demand for makeup and cosmetic treatments climbs. Levi (NYSE:LEVI) has also been betting on that pent-up demand, hoping a return to normal will mean a major return to hip-hugging denim.
The trend continues, and it shedding light on even more corners of the stock market. Harley-Davidson (NYSE:HOG) shares are climbing Thursday on a note from Bank of America analyst Robert Ohmes. It seems Wall Street is also factoring in a pent-up demand boost for motorcycles. Investors should note that Harley-Davidson has also stirred up support from other analysts, thanks to its used-motorcycle business and EV exposure.
One other story worth watching? Luxury retail stocks. LVMH (OTCMKTS:LVMHF) became the most valuable stock on the European market earlier in 2021, boosted by investor optimism. Since the first months of the pandemic, LVMH stock climbed, as did the stocks of its rivals. Although brick-and-mortar struggled with business restrictions, it seems consumers did not stop shopping. When the world returns to normal, investors are expecting that shopping to only pick up. What better way to enter the new world than with a designer handbag and some expensive wine?
The Next Big Cryptocurrency? Try Privacy Tokens
Is Bitcoin, in the words of the Black Eyed Peas, so two thousand and late?
Although price predictions for BTC continue to trek to six-figure levels, some crypto insiders are looking for the next big cryptocurrency. One of those people is Barry Silbert, the CEO of Digital Currency Group, which happens to be the parent company of CoinDesk.
Looking to the future, Silbert sees investment opportunities in privacy tokens, which he says are already outperforming their peers. Others in the space agree, identifying privacy as a key issue moving forward, as it controls who has power and access.
For investors, this means widening the scope of altcoins you consider to look at privacy tokens. These are certainly smaller in terms of market capitalization than their peers, but growing interest in privacy could continue to give them a boost. Zcash (CCC:ZEC-USD) and Horizen (CCC:ZEN-USD) are two tokens you should have on your radar now.
Bonus story: Another investment opportunity gaining traction is digital wallet stocks, following remarks from Cathie Wood. The leader of Ark Invest says digital wallets are a top theme she is watching right now.
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.