Markets soared to new records on Friday, erasing Thursday’s sell-off to end the week at record levels.
Despite investors’ concerns about a potential pullback by the Federal Reserve, as well as fears surrounding a growing Delta variant, investors rushed to buy Thursday’s dip, leading the Dow Jones Industrial Average to gain 448 points. The S&P 500 gained 48 points, or 1.13%, to 4369 and the tech-heavy Nasdaq jumped nearly 1%, gaining 142 points to close at 14,701.
If the current economic momentum continues, it would not be unrealistic to see the S&P approaching 5,000 by the end of 2021.
Indeed, I expect that the Fed will remain highly accommodative (whether it should is a whole other story) and, assuming Biden’s tax policies are met with continued resistance in Washington, then the economic recovery that has already begun will help drive corporate profits even higher. As such, there could be more record setting days ahead for markets.
- S&P 500: 4,369.55, +1.13%
- Nasdaq: 14,701.92, +0.98%
- DOW: 34,870.16, +1.30%
U.S. Dollar and Treasuries
U.S. treasuries yield crept slightly higher as the dollar fell against a basket of currencies.
- U.S. Dollar Index (DXY): 92.11, -0.34%
- 10-year Treasury yield: 1.36%
- 2-year Treasury yield: 0.221%
Stocks To Watch
Tool manufacturer ToughBuilt Industries announced that its Amazon sales soared 118% year-over-year to $5.48M for the first half of 2021. The company markets its tools to professionals and to the DIY crowd. I’ve been longterm bullish on housing stocks, even at current levels, and encourage you to read my latest piece on the hot housing sector here.
Stocks of Carver Bancorp increased in premarket trading, after more than doubling in Thursday’s trading. The black-owned investment bank was targeted by retail investors for a short squeeze.
ReShape Lifesciences, a “physician-led weight-loss solutions company” has announced it has completed the move of Lap-Band manufacturing to the United States. The company expects the move to help reduce costs, improve margins and directly control the manufacturing process.
- TBLT Toughbuilt Industries $1.09, +51.30%, 10.51M (volume)
- CARV Carver Bancorp Inc, $26.92, +22.98%, 1.71M (volume)
- RSLS ReShape Lifescience $5.920, +16.31%, 2.29M (volume)
Commodities To Watch
Oil rebounded after concerns that OPEC+ would fall apart eased. The dispute between UAE and Saudi Arabia made oil traders concerned that the organization of oil exporters would stop functioning, creating a free-for-all in which supply could rise significantly. Gold extended its gains, again rallying above the key $1800 level.
- WTI crude: $74.66, +2.36%
- Gold: $1,809.00, +0.49%