Good morning and welcome to the stock market today! It is Friday the 13th, so folks on Wall Street will be looking out for black cats, ladders, and sidewalk cracks to keep the market at record highs. But beyond embracing a healthy dose of superstition, what else will the stock market do today?
- The S&P 500 is up 0.11%
- The Dow Jones Industrial Average is up 0.11%
- The Nasdaq Composite is up 0.04%
So what else will the stock market do today? Here are some of the top stories.
What Will the Stock Market Do Today? Pet Dogs.
One lovable story that emerged in the first months of Covid-19 is that Americans could not stop adopting cats and dogs. Shelters across the United States reported empty cages, and for rescue pets, the pandemic became a second chance at life. For the households adopting them, these rescue dogs and cats became companions during long months of social distancing.
As various InvestorPlace contributors quickly explored, the pet adoption boom was also a boom for pet stocks. More households with dogs and cats means more spending on veterinary care, food and toys. Chewy (NYSE:CHWY), an e-commerce business focusing on all things pets, saw its stock leap 82% in the past year. Zomedica (NYSEMKT:ZOM), a more speculative play on the vet industry, saw shares triple.
Now, following this period of unprecedented demand, some industry experts say we could be on the brink of the Great American Dog Shortage.
While many adopters rescue dogs from the so-called “canine freedom trail” bringing dogs from areas like Texas and Alabama, the U.S. also imports more than 1 million dogs a year. Some of these dogs do go to traditional pet stores, but many go into large-scale rescue networks. For instance, rescue groups coordinate transport flights from South Korea on a regular basis.
However, it may be a lot harder to meet American demand through importation. The Centers for Disease Control and Prevention suspended importation of dogs from more than 100 countries back in June due to rabies concerns. Separately, lawmakers are working on the Healthy Dog Importation Act, which would set higher vaccination and healthcare standards for imported dogs.
So what is the bottom line? Covid-19 was a huge factor in supply-demand imbalances for pets in the U.S. But as Axios reports, a variety of factors point to this heightened demand being the new norm. Our world continues to navigate shortages in everything from coffee to freight trucks to semiconductors, and rescue dogs may be a piece in that puzzle. For pet stocks primed for long-term gains, this is a catalyst to watch.
Is 2021 a Match for Dating App Stocks?
Hot Vax Summer is here, and it was supposed to be a perfect match for online dating.
Experts predicted that after months of social distancing and video-call dates, single Americans would be turning to Tinder, Bumble (NASDAQ:BMBL) and Hinge in record numbers. Embracing the predictions, Bumble pressed ahead with restaurant plans and Tinder rolled out features to indicate vaccination status. Earnings for companies like Bumble and parent group Match (NASDAQ:MTCH) back in May brought swoon-worthy guidance.
But where do things stand?
This summer met a real nemesis in the delta variant, and dating app companies are not sure how to proceed. On one hand, columnists are once again preparing tips on how to feel safe kissing new people. On the other, Bumble says it has experienced no slowdown in activity. In fact, a surge in subscribers is helping the company “shrug off” any virus concerns.
Right now for investors, MTCH stock and BMBL stock find themselves in a weird category. They are reopening plays that should be worried about the delta variant, but right now, are trying to embrace a new normal. This comes as pandemic winners falter with lower earnings guidance, like Wix.com (NASDAQ:WIX) earlier this week.
For right now then, it seems that the summer of 2021 is a match for dating app stocks. The next few months though could be a different story.
What Else We’re Watching
- Coinbase (NASDAQ:COIN) is welcoming another group of cryptocurrencies into its fold on Friday. Axie Infinity (CCC:AXS-USD), Request (CCC:REQ-USD), TrueFi (CCC:TRU-USD), Quickswap (CCC:QUICK-USD) and Wrapped Luna (CCC:WLUNA-USD) are all now available for trading on the main Coinbase platform.
- Boeing (NYSE:BA) just hit some major roadblocks in its journey to space. As the Wall Street Journal reported, it will need to delay the launch of its Starline space capsule to make repairs.
- First Reserve Sustainable Growth (NASDAQ:FRSG) has reason to celebrate today. The little-known special purpose acquisition company confirmed its merger with EO Charging. Most importantly, EO Charging is an Amazon (NASDAQ:AMZN) partner, charging its delivery vans in the United Kingdom.
- Elon Musk shared today that Tesla (NASDAQ:TSLA) is aiming to produce its first vehicles at its Berlin Gigafactory by October. However, German officials could delay the process until 2022.
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.