What a week! Today, Wall Street saw gold prices retouch recent highs, a jobs report miss rock the recovery narrative and the major indices set all-time highs. It seems that easing concerns about Federal Reserve tapering were all investors needed to enter the weekend on a good note. So what did the stock market do today?
- The S&P 500 closed higher by 0.74%
- The Dow Jones Industrial Average closed higher by 0.66%
- The Nasdaq Composite closed higher by 0.88%
So what else did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? Prep for DOGE Jokes.
Live from New York, it’s the Dogefather!
Tomorrow, Tesla (NASDAQ:TSLA) CEO Elon Musk will host SNL alongside musical guest Miley Cyrus. Some investors are planning Dogecoin (CCC:DOGE-USD) watch parties, anticipating major gains after Musk hinted that DOGE would make an SNL appearance of its own.
— InvestorPlace (@InvestorPlace) May 7, 2021
Leading up to the crypto-crazy SNL episode, Dogecoin prices have had an impressive week. DOGE set a new all-time high at 69 cents and continued to generate support. Anheuser-Busch InBev (NYSE:BUD) got on board with its Pupweiser campaign, and rapper Meek Mill announced he was buying DOGE. Travala, a blockchain-based travel agency, started accepting Dogecoin as a form of payment. The Oakland Athletics, perhaps inspired by the Dallas Mavericks, did the same.
Importantly, Musk appears to be cooling off on Dogecoin (or maybe he is finally listening to his lawyers and media relations team). Ahead of his SNL gig, he warned his followers to be careful investing in cryptocurrencies.
But despite his new warning, investors see big things in Dogecoin’s future. In fact, one big name thinks that the story has forever changed for Dogecoin: Now, the meme coin could have real utility.
Mark Cuban said that he sees Dogecoin prices headed for $1. Once DOGE hits that mark, he thinks it will linger, citing growing support and uses for the meme coin. In other words, SNL name drops and Shiba Inu memes put it in the spotlight. Brands joining in on the fun could mean that Dogecoin could stay there.
SafeMoon Shows That More Crypto Chaos Is Ahead
In just a few short weeks, SafeMoon (CCC:SAFEMOON-USD) gained more than 500,000 Twitter followers, brought in more than 1 million users and became the most-searched token on CoinMarketCap. It also drew scam allegations from crypto influencers like Lark Davis and War on Rugs.
As InvestorPlace Markets Analyst Tom Yeung wrote today, there are real red flags with SafeMoon. CertiK confirmed influencer concerns, such as its centralized control, enormous token supply and inadequate token burn. Some investors have even turned on SafeMoon, as the token is now 35% of its all-time high despite the liquidity pool function and seller fees meant to curb volatility.
But plenty of investors are still buying. The reason why highlights a broader story in the current cryptocurrency market. Tokens that promise nothing more than to gain attention and build community support rocket higher — and investor response only incentivizes scammers.
Essentially, Yeung says that in a world where identity investing is the norm, and where social media influence is growing, it is easy for scammers to find targets. Add in the fact that investors are hungry to get rich from the next big opportunity, and you have the perfect recipe.
So what can you do? You can gamble on SafeMoon or the dozens of copycat cryptos popping up. But if you truly want to get wealthy, Yeung says that you should just create your own coin.
Winners, Losers, Honorable Mentions
Winners: The newly launched Chia (CCC:XCH-USD) cryptocurrency found itself winning on Friday, following reports that Amazon (NASDAQ:AMZN) AWS would support mining of XCH. Chia promises to be more environmentally conscious than Bitcoin thanks to its proof of space and time protocol.
Losers: Ocugen (NASDAQ:OCGN), a red-hot name among retail investors, suffered this week. First, a handful of insider selling filings with the U.S. Securities and Exchange Commission rocked investors. Then, President Joe Biden and the European Union voiced their support for vaccine patent waivers. Lastly, OCGN stock missed its earnings estimates, making it an all-around bad week. Another loser this week was Cathie Wood, who found her ARK Innovation ETF (NYSEARCA:ARKK) struggling.
Honorable Mentions: Another week, another round of questionable cryptocurrencies emerging to mass hype. Carole Baskin of Tiger King fame receives some credit for her $CAT, a fan token. Baskin has previously pumped Dogecoin and says $CAT will help raise awareness around animal captivity. Also noteworthy is Pokeball (CCC:POKE-USD), a Pokémon-themed crypto that gained 700% in a single trading day earlier this week.
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 the Editor of Today’s Market with InvestorPlace.com.