Good morning and welcome to the stock market today! This is a busy day, with investors trying to divide their attention between a pot holiday, #DogeDay and a key tech event. So in the midst of all this, what will the stock market do today?
To start, the major indices remain in a slump. The S&P 500 is down 0.26%, while the Dow Jones Industrial Average is down 0.43%. The Nasdaq Composite is also down 0.16%.
So what will the stock market do today? Here are the top three stories.
What Will the Stock Market Do Today? Get High.
The U.S. House of Representatives is making waves in the cannabis stocks world, just in time for the iconic 420 weed holiday. Yesterday, lawmakers passed the Secure and Fair Banking Enforcement (SAFE) Act for the second time. This bill essentially protects financial institutions who choose to provide services to otherwise compliant cannabis businesses. Before, the threat of legal blowback disincentivized banks from taking cannabis companies on as clients. The thinking is that the SAFE Act will help cannabis companies gain legitimacy moving forward.
As a refresher, cannabis stocks have had a hard time in 2021, even with Democrats controlling the House and the Senate. That is because Covid-19 has weighed on cannabis demand, and because U.S. lawmakers have the industry in limbo. For many investors, the ultimate upside catalyst will be federal legalization. Until then, cannabis stocks are in a bit of an uncertain spot.
For today, 420 and the passage of the SAFE Act are enough to help cannabis stocks light up. Just keep an eye on top names like Sundial Growers (NASDAQ:SNDL), Tilray (NASDAQ:TLRY) and Aphria (NASDAQ:APHA) moving forward.
One thing to note? Tobacco stocks are not enjoying the same high on Tuesday. In fact, top names like Altria (NYSE:MO) and Phillip Morris (NYSE:PM) are feeling the heat following an update from President Joe Biden and his administration. Why? An administration official raised talks that the U.S. Food and Drug Administration could ban menthol cigarettes, in addition to capping nicotine levels. Industry experts have expected Biden to tackle this at some point in his presidency, but the news is still shaking up tobacco stocks today.
Dogecoin, Slim Jim, Guy Fieri and All-Time Highs
Wall Street really has a packed calendar today. After investors spend the morning with a little wake-and-bake action, it is time to head on over to Robinhood to check their Dogecoin (CCC:DOGE-USD) holdings. That is because crypto bulls have decided today is #DogeDay, or as some have branded it, #DogeDay420.
This holiday of sorts comes after the meme cryptocurrency rocketed to all-time highs above the 40-cent level last week, enjoying the after effects of the Coinbase (NASDAQ:COIN) IPO and record highs in other digital currencies. Celebrities are also helping fuel #DogeDay, with top figures like Elon Musk and Mark Cuban boosting the visibility and legitimacy of the coin.
So where do things stand now? DOGE is off its highs from last week, but it is still trading close to the 40-cent threshold. This is impressive, considering that Bitcoin (CCC:BTC-USD) lead the crypto market down yesterday, likely in response to a mining outage in China and talks of international crypto bans. Today could be see some Dogecoin price gains thanks to the sheer determination of backers alone. Special product launches from Slim Jim and Snickers should help things, too.
Then, once you finish admiring Shiba Inu memes, get ready to virtually go to Cupertino. Tim Cook has a few surprises waiting for investors at 1:00 p.m. Eastern.
Will Apple Stock Get Spring Loaded Today?
Today is a big day in Cupertino. Apple (NASDAQ:AAPL) will kick off 2021 with its first live event, and tech aficionados and Wall Street analysts are all paying close attention.
So, what is the big deal? Broadly, the “Spring Loaded” Apple Event is the first product launch of the new year, prompting all sorts of predictions ahead of time. One of the top expectations is that the company will launch a next generation of its iPad lineup, including multiple sizes of its iPad Pro, and iPad mini and a standard iPad. These iPads, the perfect devices for a pandemic, are also expected to get a serious upgrade. Beyond that, analysts are calling for product price changes, a new Apple TV, Apple AirTags and potentially even the launch of the AirPods 3.
For investors, look to Covid-19 and emerging trends as the key upside drivers for Apple stock. For instance, we know that the demand for headphones and headsets has climbed as more people work from home. If Apple can deliver hype around the AirPods 3, shares could see a boost. In terms of downside pressure, look for the company to comment on the ongoing chip shortage. According to a report from Nikkei, Apple has already faced production delays on its iPads and some of its laptops.
You can read more about the upcoming Apple event 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.
