The major indices are entering the second half of the year and have already achieved remarkable returns for 2021
Wall Street has moved into the second half of the year and a new month and Quarter of this week, and the transition was seamless. All three major indices showed mostly positive price action over the week, which contributed to the remarkable returns from the first half of 2021 S&P 500 (SPX) stormed the charts in a seemingly unstoppable climb, lined up six record highs in a row and was well on its way to number seven after hitting one Intraday peak earlier in today’s session.
Trading on Monday started a bit bumpy as the Dow Jones Industrial Average (DJI) lost 150 points while energy and transportation stocks stalled. The tech-heavy one Nasdaq composite (IXIC), on the other hand, joined the S&P 500 to set new records with a spotlight outperforms big tech. The Washington DC weekend infrastructure deal was also on investors’ radar as it became known that President Joe Biden would not veto the legislation, even if it meant foregoing a Democrat-favored reconciliation bill. On Tuesday, the mood cooled, with the Nasdaq and S&P 500 barely able to win as fears about the easily transferable Covid-19 Delta variant were weighed.
The second quarter and first half of the year officially ended on Wednesday and traders looked up significant growth for all three indices, although the markets were mixed that day and the Nasdaq ended its consecutive winning streak and turned slightly down. However, stocks rallied on Thursday as positive employment data instilled some optimism in the markets Weekly jobless claims have hit a pandemic-era low. This rally was incorporated into Friday’s trading as investors prepare for the three-day weekend of July 4th. At last glance, the Dow, S&P 500 and Nasdaq are all on track to see their weekly gains in a row as the Cboe volatility index (VIX) – Wall Street “fear display” – heading for the lowest closing price since February 2020.
Must-Snag Stocks In July (And Which Stocks To Avoid)
A brand new month means another study by Schaeffer’s Senior Quantitative Analyst Rocky White that looks at seasonality and how investors can use it to their advantage. Among the top 25 stocks to own in July, Google parent Alphabet (GEL) headed the list easily, which could be a good sign for options gamers who might want to get into the category Rally FAANG name. Meanwhile the list is the 25 worst performers could provide clues to a sector that traders may want to break this month.
How companies are currently responding to Covid-19
The easily transferable Delta variant of Covid-19, along with the uneven distribution of vaccines around the world that has resulted in lengthy lockdowns around the world, has certainly put some weight on optimism. We’ve covered several companies that have responded to these new fears to get the virus under control. Johnson & Johnson (JNJ) said today that it is Vaccine works against the delta variant up to eight months after immunization.
On the other hand, Altimmune (ALT) suspended its Covid-19 vaccine trials, which skyrocketed its share price after the company announced it would focus its efforts on developing its liver and obesity treatments. Another big name involved in vaccine distribution, Walgreens Boots Alliance (WBA), stepped into the profit confession. The company reported quarterly net income and sales, adding that it was managing 17 million jabs in the third quarter with a total of 28 million vaccinations forecast for 2021. Despite the positive report, the stock took a heavy dive on Thursday.
What could move the markets after the fourth?
The week following a holiday known to be known for fireworks could be a respite for some investors with a relatively empty economic calendar on deck. The most notable event will take place in the middle of the week, when the Federal Open Market Committee (FOMC) releases its latest minutes of the meeting, while another round of weekly job data will move the markets as well. In the meantime, look for a Breakdown by sector Schaeffer’s senior quantitative analyst Rocky White, along with an in-depth analyst at the recent FOMC meeting, than shares some of theirs with the option sentiment Expiration week losses, courtesy of Todd Salamone, Senior Vice President of Research.