The week is just starting, and it already feels long. Trading this morning kicked off with yet another cryptocurrency crashed and ended with a speculative rally in energy names. So with that in mind, what else happened in the stock market today?
- The S&P 500 closed higher by 1.4%
- The Dow Jones Industrial Average closed higher by 1.76%
- The Nasdaq Composite closed higher by 0.79%
So what else did the stock market do today? Here are some of the top stories.
What Did the Stock Market Do Today? Talk Crypto.
Crypto prices today likely have investors ready for the weekend… again.
As of this writing, the top 10 cryptocurrencies by market capitalization are all in the red. Bitcoin (CCC:BTC-USD) prices are down 8%. Dogecoin (CCC:DOGE-USD) prices are down nearly 25%. Investors are reacting to news out of China, reaffirming earlier moves to ban crypto trading in the country.
So what exactly happened? Over the weekend, China’s Sichuan province ordered all Bitcoin mining operations to shut down. This province is home to one of the largest hydro-powered mining centers in the world. It also is not the first province to take a stance — as InvestorPlace contributor Chris MacDonald reported earlier in June, the Qinghai province similarly banned mining.
Now, China-based companies must relocate or shutter operations. As Dogecoin influencer Matt Wallace shared, some companies are already announcing moves to the U.S. and other countries. In the meantime, investors are still bracing for pain.
Making matters worse on Monday was a decision from the People’s Bank of China (PBOC). The PBOC told top banks in China that they may not provide trading, clearing or settling for crypto transactions. This reaffirms earlier anti-crypto messaging from China which rests on its price volatility.
So what is the bottom line? As InvestorPlace contributor Robert Lakin reported, today was a rough day for cryptocurrencies despite the PBOC announcement being (sort of) old news. Brace for further volatility in the coming days. It would not be surprising to see investors start shaking off the China fears.
Pack Your Bags?
Hot Vax Summer is here, and American consumers are ready to start travelling again. For companies in the airline, cruise and hotel space, that brings a variety of rewards and challenges.
Over the weekend, Royal Caribbean (NYSE:RCL) saw its first Covid-19 trial cruise set sail. Its Freedom of the Seas departed from Miami on Sunday night, carrying 600 employee volunteers. Over the course of the cruise, Royal Caribbean will be testing its Covid-19 precautions, with a representative from the Centers for Disease Control and Prevention on board. As CNN reported, this puts it one step closer to accepting paying passengers.
Airlines are similarly working to get back to normal. In recent days, passenger throughput has neared 2019 levels, according to TSA data. This should be a boom for passenger airlines like United (NASDAQ:UAL) and American Airlines (NASDAQ:AAL).
However, beneath the surface, the recovery story is a little more complicated.
Airlines — and many other companies — are struggling as a result of the labor shortage and many other post-pandemic factors. United Airlines CEO Scott Kirby is warning of a future pilot shortage, and his company is launching a training academy to counter disruptions. American, facing similar shortages and weather complications, has cancelled hundreds of flights.
So what is the bottom line? Labor shortages are hitting a variety of industries, from nursing to engineering. For travel companies, however, they are particularly painful and could squeeze the pandemic recovery story.
What Else We’re Watching
- Amazon’s (NASDAQ:AMZN) annual Prime Day event kicks off today and runs through tomorrow, June 22. As InvestorPlace contributor Will Ashworth highlights, this shopping holiday provides consumers with lots of deals. Ashworth also writes that for seven other retail stocks like Bed Bath & Beyond (NASDAQ:BBBY), Amazon Prime Day is a stock catalyst.
- As part of the American Rescue Plan, the first payments from the Child Tax Credit will start hitting bank accounts next month. According to Yahoo Finance, the maximum benefits apply to parents with children 6 years old or younger.
- One of the top gainers today is Torchlight Energy (NASDAQ:TRCH). As InvestorPlace contributor Robert Lakin reported, this is a speculative name gaining ground ahead of its merger with Metamaterial (OTCMKTS:MMATF). Between now and when the merger closes, Torchlight will be paying out a special dividend, on June 25.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Sarah Smith is the Editor of Today’s Market with InvestorPlace.com.