Who needs Vegas when American have the stock market?
Clearly, the Fed has given up on controlling inflation. Or, at least the market believes. And, ss such, the casino action is in full swing and everyone wants to stay longer at big party.
I get it. And, I’d like the party to keep going too. I suspect it will for the foreseeable future… But, investors need to know, the Fed and the markets are confronting a fragile situation… one that is high risk situation. After all, 5% annualized inflation that could very turn into 8% or even more by the end of the summer. And what would the Fed do then?
Well, the market assumes…NOTHING.
Understandably, investors don’t want to bet against the Fed. As such, they continue buying up stocks. But, the Fed’s reckless policy–which may be coupled with even more reckless policy from Joe Biden and company, assuming the administration can get anything done on the economic policy front–could ultimately have a very negative effect on markets. (Story continues below video.)
A bubble is being created — and, even a hint of pull back from the Fed, could cause it to burst. (I mean, MEME STOCKS??!? Talking about fragility…)
Anyway, as long as the Fed keeps printing, investors will keep buying. Inflation in all asset classes — including stocks — is here and will continue to escalate. So, let’s hope the party lives on.
In today’s markets, we see meme stocks and oil higher. (I’ve predicted $100 oil this year… and higher than $75 this summer, based on increased demand tied to the reopening of the global economy.)
U.S. stock futures were up again, as investors remain convinced that the Federal Reserve won’t do a darn thing about inflation. The Fed seems totally unfazed with yesterday’s inflation report.
- S&P 500 futures: 4,235.00, +0.14%
- Nasdaq futures: 13,978.25, +0.19%
- DOW futures: 34,528.00, +0.18%
U.S. Dollar and Treasuries
10-year Treasury yields decreased, helping to push the stocks even higher. The dollar rallied — once again, suggesting that down is up and up is down in this brave new world of investing.
- U.S. Dollar Index (DXY): 90.29, +0.24%
- 10-year Treasury yield: 1.459%
- 2-year Treasury yield: 0.140%
Stocks To Watch
Retail investor interest continues to drive some of the largest stock moves in premarket trading today.
Shares of a medical company Orphazyme dropped almost 50% on premarket trading, as retail investors are cashing in on their profits. At its peak, the stock traded at $77, more than 1000% of its normal value.
Shares of Amesite surged more than 50% in premarket trading, mostly on retail investor interest. Investors could possibly be coordinating on Twitter. Amesite creates AI software designed to improve learning.
A medical technology company GBS Inc. announced the results of a study of its saliva glucose biosensor. The device offers a non-invasive diagnostic tool that patients with diabetes can use on their own.
GBS Inc. has attracted retail investors after a similar company, Senseonics, experienced a retail investor-driven “short squeeze.”
Vertex Pharmaceuticals stopped developing a rare disease treatment on Thursday. The company was developing a cure for alpha-1 antitrypsin deficiency, a rare genetic disorder that causes lung and liver disease. Vertex said that the drug was unlikely to benefit patients.
- ORPH Orphazyme A/S, $10.79, -48.62%, 4.46M (volume)
- AMST Amesite $4.36, +57.40%, 7.02M (volume)
- GBS GBS Inc. $5.25, +44.63%, 2.48M (volume)
- SENS Senseonics Holdings, $4.1, +13.26%, 5.36M (volume)
- VRTX Vertex Pharmaceuticals Inc. $186.74, -13.85%, 96.9K (volume)
Commodities To Watch
Oil continues to rally with the stock market. Gold dropped.
- WTI crude: $70.71, +0.60%
- Brent crude: $72.88, +0.50%
- Gold: $1,892.00, -0.23%
The global crypto market cap increased by -2.58% in the last 24 hours. Bitcoin is still above $37,000.
- BTC: $37,259.32, -1.78%
- ETH: $2,459.72, -4.36%
- DOGE: $0.3229, -4.05%
- ADA: $1.52, -4.06%