Good morning and welcome to the stock market today! The sun is shining, SPAC news is emerging and cicadas are coming back to several states across the U.S. So what will the stock market do today? Dive in with InvestorPlace below.
To start, investors should know that the major indices are perking back up. The S&P 500 is up 0.18% and the Dow Jones Industrial Average is up 0.15%. The tech-heavy Nasdaq Composite is also up 0.14%.
So what else will the stock market do today? Here are the top three stories.
What Will the Stock Market Do Today? Take a Vacation.
Americans are ready to go on vacation. Each passing day gets the United States closer to those dreams of backyard barbeques and beach trips. For investors, that means the case for travel stocks is sizzling.
What do you need to know now?
The first component of this all comes down to Covid-19. Travel restrictions and consumer choices have weighed on the travel industry. Simply put, even consumers who were allowed to travel were hesitant to do so because of pandemic fears. That is now changing.
Just yesterday, President Joe Biden made a big announcement that is boosting consumer confidence and strengthening the reopening narrative. He moved the deadline for all American adults to be eligible for the Covid-19 vaccine up to April 19. That speeds up his earlier timeline, and speaks to hopes that full vaccination will be here soon. With that vaccination comes the promise of a safe reopening, and a return to at least some elements of normal life.
The second component of this is all about demand.
Consumer demand for travel is picking up. Booking Holdings (NASDAQ:BKNG) CEO Glenn Fogel says he sees real hope on the horizon for travel, and other companies are ready to pick back up and get customers in flights, on cruise ships and in hotel rooms. According to the team at Marketing Brew the emotional, pent-up demand aspect will actually be a focal point in upcoming campaigns. After months stuck inside, the idea of relaxing with our friends and family really is emotional.
So what should you know now? The team at Robinhood Snacks perhaps puts it best. Investors are looking to the recovery in travel stocks with a cabin-half-full mentality. This is because many things, like business travel, many not ever return to pre-pandemic levels. However, after seeing things absolutely plummet in the early months of the pandemic, investors are optimistic about what comes next.
Ready to play the recovery? Consider this list of the best airline stocks to watch now.
Get Ready for the Economic Boom
JPMorgan Chase (NYSE:JPM) CEO Jamie Dimon released his annual shareholder letter today, and everyone on Wall Street is taking note. He touches on the future of remote work, roles of corporate leaders, and so much more. He also shares his insights on the economy and the stock market moving forward. For investors, those comments are of particular interest.
Right now, Dimon is looking at the United States economy as being in boom mode. There are several things fueling this economy — like the $1.9 trillion American Rescue Plan and the proposed $2 trillion American Jobs Plan. Plus, he says that unlike during the Great Recession and previous financial crises, corporations are in good shape. In fact, he writes that corporations have approximately $3 trillion on their balance sheets. Exiting the pandemic, that is a lot of money that can get put to work.
“I have little doubt that with excess savings, new stimulus savings, huge deficit spending, more QE, a new potential infrastructure bill, a successful vaccine and euphoria around the end of the pandemic, the U.S. economy will likely boom. This boom could easily run into 2023 because all the spending could extend well into 2023.”
What about the stock market? Dimon does say there is “froth” in some corners of the stock market. However, he thinks that any high valuations could be justified today because of the multi-year growth he sees ahead. For investors hoping to cash in on Covid-19 recovery, that is a good sign.
The bottom line: Dimon and his annual shareholder letter are a trusted source of insight on Wall Street. Combined with economic indicators like the better-than-expected March jobs report and rebounding travel demand, investors are starting to feel confident about what comes next.
Oil, Covid-19 Tests and SPAC Mergers
It’s a busy day on Wall Street, so here’s what else we are watching:
- A California prosecutor filed 33 criminal charges against PG&E (NYSE:PCG) on Tuesday as a result of the 2019 Kincade Fire. PG&E has acknowledged that its transmission line caused the fire, after high winds caused a jumper cable to break. However, it does not agree that a crime was committed.
- Covid-19 test maker LumiraDx will come public through a reverse merger with CA Healthcare Acquisition (NASDAQ:CAHC).
- Royal Dutch Shell (NYSE:RDS.A, NYSE:RDS.B) says it will profit from pumping oil for the first time since the start of the pandemic.
- Beta Technologies is generating buzz, following an agreement to sell its electric vertical takeoff and landing vehicles to UPS (NYSE:UPS).
- Grab, a ride-hailing and food delivery startup based in Singapore, will come public in a SPAC merger. The lucky company? Altimeter Growth I (NASDAQ:AGC).
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.