What Will the Stock Market Do Today? 3 Big Stories to Watch.

Good morning and welcome to the stock market today! As you get ready to bid on a copy of the Declaration of Independence, a busy week on Wall Street is kicking off. So what will the stock market do today?

Street sign for Wall Street pictured in front of several American flags representing american stocks

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  • The S&P 500 is up 0.55%
  • The Dow Jones Industrial Average is up 0.9%
  • The Nasdaq Composite is up 0.21%

So what else ill the stock market do today? Here are some of the top stories.

What Will the Stock Market Do Today? Watch Ethereum.

Ethereum (CCC:ETH-USD) is ready for the red carpet.

Today, the No. 2 cryptocurrency hit a new all-time high above $3,000, and investors are paying close attention. This comes alongside a broader rally in the crypto space. Importantly, it also comes as the level of Bitcoin (CCC:BTC-USD) dominance fades. According to a recent report, Ethereum is gaining on its big brother, with a 15% share. Bitcoin now accounts for just 46% of that market.

So what sparked the red-hot rally in Ethereum?

According to InvestorPlace contributor Robert Lakin, there are a variety of factors at play. One is simply that investor interest in decentralized finance continues to grow. One report pegs that sector at $100 billion, showing impressive growth. Another factor is that Ethereum is gearing up for a blockchain overhaul that has investors excited. The Ethereum 2.0 blockchain will pivot to a proof-of-stake process, helping to eliminate the need for mining. It also contains plans for sharding, which will allow Ethereum to split its database into mini-blockchains, addressing longstanding congestion issues.

One more thing to watch? Ethereum is not alone in its big gains today. Ethereum Classic (CCC:ETC-USD), which broke off as part of a fork in the blockchain, also hit an all-time high this morning.

You can read more about what comes next for Ethereum here.

Is Bitcoin Trash or Treasure?

While Elon Musk spent the weekend getting ready to pump Dogecoin (CCC:DOGE-USD) on Saturday Night Live, Warren Buffett and Charlie Munger had some old-school business to address.

The iconic investing duo took the stage for the annual Berkshire Hathaway (NYSE:BRK.A, NYSE:BRK.B) shareholder meeting. There, they mostly touted their slow-and-steady investing approach. They also made headlines with a series of hot takes.

It should be no surprise that Buffett and Munger do not exactly see eye to eye with r/WallStreetBets or even the likes of Chamath Palihapitiya. Buffett actually focused his introductions on the dangers of just looking at a winning industry. He highlighted that 2,000 businesses entered the auto industry in the last century. By 2009, three remained. Two of those companies then went bankrupt.

With this in mind, Buffett and Munger shared some strong words against SPACs, Robinhood and of course, Bitcoin. From Munger himself:

“Of course I hate the bitcoin success,” Munger said, citing the cryptocurrency’s use for criminal enterprises. “I think I should say modestly that the whole damn development is disgusting and contrary to the interests of civilization.”

But perhaps the biggest takeaway for investors is that the Oracle of Omaha is not just getting away with these comments. The new guard of retail investors is speaking out. Robinhood fired back, writing “if the last year has taught us anything, it is that people are tired of the Warren Buffetts and Charlie Mungers of the world acting like they are the only oracles of investing.” Binance CEO Changpeng Zhao also indirectly entered the ring, saying he believes Bitcoin is less volatile than Apple (NASDAQ:AAPL) or Tesla (NASDAQ:TSLA).

Bitcoin may be trash to Buffett and Munger, but to a new generation of investors, it is real treasure. And it is treasure that could be worth $100,000 per coin by the end of 2021.

Your Refrigerator Is (Likely) Not So Green…

According to new reports from the the New York Times and Washington Post, the Environmental Protection Agency is getting ready to kick off the week with a big proposal. This proposal hones in on hydrofluorocarbons, chemicals that are used in air-conditioning and refrigerators. Importantly, they are also Earth-warming, and much more potent than carbon dioxide.

Hydrofluorocarbons came into widespread use as a replacement for chlorofluorocarbons in the 1980s. Then, scientists learned just how damaging hydrofluorocarbons can be.

They are still in widespread uses in residential fridges in the United States, although there are more eco-friendly alternatives. They are also popular in residential and commercial air-conditioners.

Now, the EPA wants to change that. According to reports, the agency plans to roll out an 85% reduction of the production and importation of hydrofluorocarbons over the next 15 years. This would be the first federal limit on this grouping of chemicals. It could also result in more than $280 billion in health and environmental benefits.

So what comes next? And why does this matter for investors? Many on Wall Street are noting the speed at which President Joe Biden is tackling climate change goals. For bulls, this is a sign that the White House will continue to stoke clean energy stocks.

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. 

Article printed from InvestorPlace Media, https://investorplace.com/2021/05/what-will-the-stock-market-do-today-3-big-stories-charlie-munger-bitcoin-ethereum-prices/.

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