What Did the Stock Market Do? Jan. 4, 2021

Welcome to the stock market today! We are back to our daily markets coverage, just as so many investors are returning to their offices or at-home desks after a holiday break. And chances are, many of those investors feel like they seriously need to catch up on the news. So, what do you need to watch? Well, major headlines on Wall Street this morning include news from electric vehicle stocks, cryptocurrencies and vaccine makers. For more, follow the latest stock market news in real time with InvestorPlace.

Latest Updates:

Stocks Close Down on Monday

[Monday, January 4, 4:03 pm]
Contributed by Sarah Smith

  • The S&P 500 closed lower by 1.48%
  • The Dow Jones Industrial Average closed lower by 1.25%
  • The Nasdaq Composite closed lower by 1.47%
  • The Russell 2000 closed lower by 1.33%

Matt McCall: 10 Top Predictions for 2021

[Monday, January 4, 2:53 pm]
Contributed by Sarah Smith

Today is the first trading day of a brand-new year, meaning that today is the perfect time to prep yourself for a year of stock market ups and downs ahead. If you are not sure where to begin, you are in luck. InvestorPlace analyst Matt McCall got a head start, rounding up his top 10 predictions for 2021. And most importantly? McCall thinks investors are in store for a roaring stock market. Here are his other predictions:

  1. There will not be a federal Covid-19 lockdown in 2021
  2. Money will move from the sidelines into the stock market
  3. Consumer spending and related stocks will soar
  4. Growth in China will continue
  5. Bitcoin (CCC:BTC) will hit $40,000
  6. There will be at least two market corrections
  7. Congress will pass an infrastructure/energy bill
  8. Small-cap stocks will outperform
  9. The SPAC mania will continue
  10. China will invade Mars

Read more about each of these predictions here.

QuantumScape Plunges 40% on Heavy Trading

[Monday, January 4, 2:43 pm]
Contributed by Sarah Smith

Things are not looking too hot for QuantumScape (NYSE:QS) today. The battery startup, which focuses on solid-state batteries for electric vehicles, has been surging in recent weeks. This is largely thanks to recent announcements that its battery tech can reach an 80% charge in 15 minutes. However, QS stock is suffering on Monday. This comes after the company filed an S-1 with the U.S. Securities and Exchange Commission, freeing shares and warrants held by private placement investors. Additionally, critics have started to claim that QuantumScape is overpromising. For more, read the InvestorPlace.com brief on QS stock here.

Midday Update: Stocks Reverse Course

[Monday, January 4, 1:06 pm]
Contributed by Sarah Smith

  • The S&P 500 is down 2.11%
  • The Dow Jones Industrial Average is down 2.03%
  • The Nasdaq Composite is down 2.16%
  • The Russell 2000 is down 2.35%

Marijuana Stocks Get a Georgia Boost

[Monday, January 4, 12:12 pm]
Contributed by Sarah Smith

Earlier this morning, we alerted investors to the importance of the upcoming Senate runoff races in Georgia. Tomorrow, voters will ultimately determine whether Democrats or Republicans gain control of the Senate. If Democratic candidates Jon Ossoff and Raphael Warnock win, the Senate would flip into Democratic control, ushering in a blue wave under the leadership of President-elect Joe Biden.

Although many pollsters are avoiding chiming in on the race, some indicators like the overseas betting markets have investors more confident in a Democratic win. Plus, recent opposition by Senate Majority Leader Mitch McConnell to $2,000 direct payments has soured the Republican case. If voters view the Democratic candidates as a ticker to Covid-19 relief measures, that may be enough to secure the election.

And if that happens, one corner of the stock market looks particularly bright. That sector is cannabis. Ahead of the Georgia races, Canopy Growth (NASDAQ:CGC) and Aurora Cannabis (NYSE:ACB) are both climbing higher. As we wrote about the move, it is important for investors to do their own research, especially leading up until the declaration of victory. However, even beyond the Senate races, the bull case for cannabis stocks is strong.

With that in mind, here are six marijuana stocks to keep on your radar now.

On the Move: Delivery Records Help Chinese EV Stocks

[Monday, January 4, 10:02 am]
Contributed by Sarah Smith

Leading Chinese electric vehicle makers are not playing around after the trading holiday. The trio of Nio (NYSE:NIO), Li Auto (NASDAQ:LI) and Xpeng (NYSE:XPEV) are all driving higher Monday morning after announcing new monthly delivery records. This should not be entirely surprising — seemingly every month this grouping of companies has set new records. However, it also follows a real surge in investor interest in this space. As these companies continue to garner mainstream interest, news that they continue to beat their own estimates and set new delivery records is positive. Importantly, it is also relevant for fans of Tesla (NASDAQ:TSLA), as that company faces growing competition in the Chinese EV market. So what should you do?

According to InvestorPlace readers, it is time to buy NIO stock for 2021. In fact, as the Best Stocks for 2021 contest launches, readers have selected Nio as their pick. Dive into the reasoning and check out the rest of the 2021 contestants here.

Major Indices Launch Monday in the Green

[Monday, January 4, 9:33 am]
Contributed by Sarah Smith

  • The S&P 500 opened higher by 0.25%
  • The Dow Jones Industrial Average opened higher by 0.07%
  • The Nasdaq Composite opened higher by 0.39%
  • The Russell 2000 opened lower by 0.27%

3 Big Stories to Watch This Morning

[Monday, January 4, 9:01 am]
Contributed by Sarah Smith

  1. Vaccines, vaccines, vaccines. Novel coronavirus cases remain elevated while healthcare workers and hospitals struggle to keep up with the pandemic. Governments around the world are revisiting strict lockdown measures and other Covid-19 restrictions. And the vaccine rollout continues, albeit at a slower-than-projected pace. However, that could be changing. According to top public health officials in the United States, vaccinations should start to pick up. What does that mean for investors? Hopefully with increased vaccination we will continue to inch toward full reopening. Additionally, the United Kingdom has just begun deployment of the AstraZeneca (NASDAQ:AZN) vaccine. Will other nations follow in its footsteps?
  2. Cryptocurrencies are on the move. Bitcoin (CCC:BTC) set another all-time high above $34,000 over the weekend. While the leading crypto still remains above $30,000, things have been volatile. Right now, bitcoin is down nearly 9%, dropping as low as $29,316 on Monday morning before rebounding.
  3. Georgia elections. Tomorrow, Georgia will vote in two key runoff races that could flip control of the Senate to Democrats. While many investors are betting that victories by Democrats Jon Ossoff and Raphael Warnock would guarantee greater Covid-19 stimulus measures such as $2,000 direct payments, not all on Wall Street are sure that such a win would be beneficial. On Monday, analysts from Oppenheimer told clients that such a Democratic sweep could see the S&P 500 fall 6%-10%.

Stock Market Futures Climb to Start the Week

[Monday, January 4, 8:12 am]
Contributed by Sarah Smith

  • S&P 500 futures are up 0.48%
  • Dow Jones Industrial Average futures are up 0.48%
  • Nasdaq Composite futures are up 0.51%
  • Russell 2000 futures are up 0.73%
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