Good morning and welcome to the stock market today! The sun is shining, we are one week out from President Joe Biden’s new vaccine eligibility deadline, and Fearless (Taylor’s Version) is finally here. So what will the stock market do today? Dive in with InvestorPlace below.
To start, investors should note that the major indices are all in the red to start the trading week. Microsoft (NASDAQ:MSFT) confirmed its acquisition of Nuance Communications (NASDAQ:NUAN), and NUAN stock is soaring as a result. Pot favorite Aphria (NASDAQ:APHA) is also stirring up headlines, after its fiscal Q3 results disappointed on Monday morning.
So what else will the stock market do today? Here are the top three stories.
What Will the Stock Market Do Today? Talk About Chips.
Today, the White House will host the CEO Summit on Semiconductor and Supply Chain Resilience.
In other words, corporate executives are heading to the White House to share grievances about the ongoing chip shortage. Guests include Marry Barra and Jim Farley, the CEOs of General Motors (NYSE:GM) and Ford (NYSE:F). Leaders from Alphabet (NASDAQ:GOOG, NASDAQ:GOOGL), Intel (NASDAQ:INTC), Micron (NASDAQ:MU) and Taiwan Semiconductor (NYSE:TSM) will also be in attendance.
So what do you need to know?
As the team at Morning Brew writes, the chip shortage stands out because of how long it has lasted and how far it reaches. Automakers like General Motors and Ford continue to face production impacts, including temporary halts at plants. Electric vehicle makers including Nio (NYSE:NIO) have similarly suffered. Apple (NASDAQ:AAPL) is struggling to keep up with production of its MacBooks and iPads. Sony (NYSE:SNE) says the frenzy around its new PlayStation 5 is also because of the chip shortage.
Just this past week, an auto group said the semiconductor shortage could result in 1.28 million fewer vehicles being built this year… and disrupt production for months to come.
This is the key backdrop for the White House field trip. Executives want to prevent further supply chain woes, and lobby for the investment needed to solve the underlying problems. President Joe Biden has already indicated support for a $100 billion investment, but Reuters says this will not address the short-term issues. Keep a close eye on the end results of the summit, and for insight into any short-term plans.
The Crypto Craze Continues
Bitcoin (CCC:BTC) is back above $60,000, and the crypto craze is only picking up.
The weekend saw major moves in a handful of cryptocurrencies. Besides Bitcoin, BinanceCoin (CCC:BNB) got a huge boost after launching its first tokenized stock token. Dogecoin (CCC:DOGE) is rallying in response to new tweets from Elon Musk. Ethereum (CCC:ETH) hit an all-time high of its own over the weekend. It seems that the altcoin season dominating headlines will only continue into this week.
So what should investors be watching? To start, the Wednesday direct listing of Coinbase holds promise. As the largest cryptocurrency exchange in the United States, investors have been drawn to Coinbase ahead of its IPO. The hope is that it will give the entire cryptocurrency space a boost, and allow early shareholders to profit. We already saw this last week, with several altcoins rallying. Right now, the biggest beneficiaries are other exchange tokens and recent additions to the Coinbase platform.
The other thing to watch to the start the week is more movement in the realm of Bitcoin exchange-traded funds. As Zack Seward writes for CoinDesk, Galaxy Digital has filed with U.S. regulators to launch a Bitcoin ETF in the U.S. If approved, it would be the first such fund in the United States, although there are a few applications ahead of it in the queue. Whether or not Galaxy takes the prize, the ETF competition speaks to the growing interest in cryptos and the regulatory challenges that will follow.
Wall Street Is About to Get a Make-Over
Many investors are focusing their reopening plays on big things — cruises, air travel, casinos, hotels. According to new reports, they may be missing opportunities in post-pandemic trends that are closer to home.
Consider the post-earnings rally in Levi (NYSE:LEVI) last week. Even though the denim retailer posted a quarterly disappointment, investors bid up LEVI stock. Underlying the movement was the hope that Covid-19 reopening would get consumers buying some flattering new jeans to take on the world.
Cosmetics stocks look to offer another post-pandemic opportunity to profit. As Amanda Mull wrote for The Atlantic, we could be about to see a boom in Botox appointments and other cosmetic treats. After months of trying do-it-yourself treatments at home, researching skincare ingredients and obsessing over influencers, Covid-19 reopening offers a new opportunity for glamor. Mull thinks consumers will take up their pent-up desire to spend and feel pretty, and book appointments for eyelash extensions, Botox and so much more. In a reopened world, consumers will also have more excuses to wear simple makeup again.
Want to explore a little glamor in your portfolio? Consider cosmetics stocks like Estee Lauder (NYSE:EL), Coty (NYSE:COTY), Ulta (NASDAQ:ULTA) and e.l.f. Beauty (NYSE:ELF).
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.