Market News Week of November 8, 2021
What's happening in the market?
The market continues to melt up and is as resilient as ever. It seems that every kind of news is good news. A few factors sent the market flying again this past week. The US reported better than expected employment numbers. This means that people are going back to work and the economic recovery is on track. Jobless claims were also fewer than expected confirming the aforementioned. The fed continues to insist that inflation is transitory and tapering will begin in November with $15 billion being taken off the table for bond buying. To add a boost of energy to the market's rally is the news about the Pfizer (PFE) antiviral Covid pill's positive data. Pfizer's pill shows over 85% reduced hospitalization for people with Covid symptoms. This is great news for the economy because it will keep people at work and keep the reopening pace.
Click on the image to enlarge
What will affect the market this week?
One of the most talked-about items around the country is the Infrastructure Bill. The bill has gone through multiple setbacks with many different components being tossed in and out of the bill. After much compromise and debate, the bill was finally passed on Saturday, January 6, 2021, and is set to be signed into law. CPI, Jobs, and Fed tapering will continue to be critical factors that will affect the market along with earnings from big companies. Earnings scheduled for this week are AstraZeneca (AZN), Disney (DIS), PayPal (PYPL), BioNTech (BNTX), Coinbase (COIN), and AMC Entertainment (AMC).
Click on the image to enlarge
What does the bill mean for the market?
As previously mentioned, the market has been in a melt-up mode for the past 3 weeks and every type of news whether good or bad has sent the market to new highs. With the bill passed, it might mean a continued rally for the market and the possibility of the SPY reaching the $500 price level.
What are the key components of the infrastructure bill?
One of the most significant components in the bill is a $555 billion investment in renewable energy. With this type of investment, the renewable sector will benefit greatly. Traders and investors will surely have their eyes on it. The EV sector has been hot for the past month and will likely continue to rally. With $7.5 billion intended to build an EV plug-in charging network, companies such as Tesla (TSLA), Lucid Motors (LCID), Fisker (FSR), Plug Power (PLUG), Charge Point (CHPT), Blink Energy (BLNK), Fuel Cell (FCEL), and others will see continued interest. Not only is the EV sector hot but it is in a revolutionary stage that even Ford (F) and General Motors (GM) have started their transition into all Electric Vehicles within the next 5 years.
What other renewable companies will benefit from the bill?
Companies in the clean energy sector that are geared towards home electrification will also benefit. Think about the push from all the solar panel companies reaching out to you to change your electric company and install their panels. The move into clean energy has started and it's still in its infancy but will more than likely continue to grow as our energy grid needs a serious expansion. First Solar (FSLR), Sun Power (SPWR), Sun Works (SUNW), Polar Power (POLA), Clean Energy (CLNE), and other similar companies will reap the benefits of the clean energy billion-dollar pump. We can't ignore the keyword Infrastructure in the bill. A huge part of the bill will be geared towards updating roads, bridges, ports, broadband, and transportation.
PSC13 Newsletter
by Jose Navarro on November 7, 2021
**This newsletter is intended for educational and entertainment purposes only. Pennystocksclub13 intends to educate beginner traders with easily accessible and simplified information to shorten the learning curve. Traders should always do their due diligence and continue educating themselves about the risks involved with trading.
All charts courtesy of Thinkorswim platform. Pennystocksclub13 is not affiliated withThinkorswim.
Disclaimer: Results may not be typical and may vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk!