Stock market futures are struggling for direction in early morning trading on Tuesday. This is the case even as estimates point towards another upbeat earnings season ahead. Notably, fears over inflation and struggling supply chains could be why stock market investors appear to be playing on the safe side now. Should these issues persist, some would argue that it could influence the rate of the economic recovery in the U.S.
To shed some light on all of this, JPMorgan (NYSE: JPM) CEO Jamie Dimon recently addressed the topic of supply chains. Dimon said, “This will not be an issue next year at all. This is the worst part of it. I think great market systems will adjust for it like companies have.” He also noted that consumer spending power remains strong. Dimon explained it as such, “They can’t buy cars, they’re buying home improvement; they can’t travel internationally, they travel domestically. The spending level is very high.” Given this bullish outlook from the CEO of the largest bank in the U.S., some investors may now see opportunity in the stock market. As of 6:53 a.m. ET, the Dow is declining by 0.01%, while the S&P 500 and Nasdaq futures are rising by 0.06% and 0.26% respectively.U.S FDA To Talk Booster Shots For Moderna And Johnson & Johnson
This week, the fight against the coronavirus pandemic could advance further. Namely, this would be the case as the U.S. Food and Drug Administration (FDA) advisory discusses booster shots starting Thursday. In particular, the coronavirus vaccine companies in focus here would be Moderna (NASDAQ: MRNA) and Johnson & Johnson (NYSE: JNJ). This would be less than a month since the FDA greenlit Pfizer (NYSE: PFE) and BioNTech’s (NASDAQ: BNTX) vaccine for high-risk individuals. With the case for booster shots building amidst waning vaccine efficacy, this would put the industry in focus now.
For some perspective, over 7 million Americans have already received a booster dose in the U.S., according to the CDC. However, the current rollout would leave out millions of individuals who received other vaccines such as Moderna’s and J&J’s. Not to mention, the rollout of booster shots continues to build momentum across the globe as well. If anything, this would not only help slow the spread of the pandemic but also see increased demand for vaccine companies’ offerings. Because of all this, vaccine stocks could be worth keeping an eye on in the stock market now.
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Bitcoin (BTC) is making headlines yet again in the stock market this week. For the most part, this would be due to the digital currency’s current winning streak. After topping the $57,000 point, the leading cryptocurrency continued surging throughout Monday. This would be due to numerous factors in play now. For starters, the biggest piece of news generating hype for the sector now would be talks of a Bitcoin Futures ETF. According to Bloomberg Intelligence, the U.S. Securities and Exchange Commission could possibly approve such a venture this month. Given the attraction of the reportedly $6 trillion ETF industry, this could serve to benefit cryptocurrencies.
In essence, such a fund would not hold actual Bitcoin. Rather, it will hold contracts that represent the digital currency. This news alongside the approval of the Volt Crypto ETF by the SEC could serve to extend Bitcoin’s current rally. In detail, the newly approved fund trades under the ticker BTCR on the New York Stock Exchange. As it stands, about 80% of the fund’s assets will be put towards crypto stocks such as MicroStrategy (NASDAQ: MSTR) and Marathon (NASDAQ: MARA). Meanwhile, 20% will reportedly be invested in “more traditional stocks”, potentially offsetting the risks surrounding the fund’s crypto-focused portfolio. All in all, as Bitcoin among other cryptocurrencies continue to gain this week, crypto stocks could gain traction as well.Oil Prices Climb For Fourth Consecutive Day To Continue Red Hot Streak Amidst Energy Shortages
Elsewhere, oil prices continue to climb as well. So much so that crude oil prices jumped to over $82 per barrel at its intraday high. As a result, the WTI crude futures hit its highest level since 2014. This is mostly due to rising global demand as energy supplies run short across the globe. Overall, James Whistler, global head of energy derivatives at SSY, Singapore, believes crude oil is being “swept up” as the broader energy sector rallies. According to Whistler, “high gas and coal prices are raising the prospect of more switching to oil for power generation.”
By and large, such a shift from natural gas to oil for energy would see a significant boost in global demand for crude oil. Now, analysts currently estimate that this could see the need for an additional 250,000 to 750,000 barrels per day. Furthermore, while the sector’s current momentum is admirable, analysts see further growth moving forward. Craig Erlam, senior market analyst at OANDA said, “There is still plenty of momentum behind the oil rally and the fundamentals remain extremely favorable.” He also added, “Will it be a surprise to see oil back in the triple digits later this year? Probably not.” Accordingly, things could heat up among oil stocks and the broader sector in the stock market today as well.Earnings On Tap Today
With the current focus on earnings season, investors would be keeping their eyes peeled for notable names reporting quarterly figures. For those keen on pre-market earnings calls, we have the likes of Fastenal (NASDAQ: FAST) and AZZ (NYSE: AZZ).
Alternatively, after the closing bell, Pinnacle Financial Partners (NASDAQ: PNFP) and Smart Global Holdings (NASDAQ: SGH) among others are on tap. Whether it is inflation, supply chain pressures, rising oil and Bitcoin prices, or pandemic-related updates, one thing is certain. There is plenty of stock market news to keep you busy today.