Stock Market Futures Point To Gains After The Juneteenth Holiday
U.S. stock futures are on the rebound in early morning trading today. It seems that investors are keen to buy into the current weakness in stocks ahead of this week’s opening bell. Following the Juneteenth holiday, however, there remain plenty of broad-based headwinds looming over the stock market today. Namely, this follows the Federal Reserve’s latest move to raise its benchmark interest rate by 75 basis points last week. For reference, this would be the largest increase in almost three decades.
On top of that, Fed chair Jerome Powell is also supplementing this move by noting that further aggressive policy tightening could be in line. This would be the case as the central bank continues its prolonged fight against rampant inflation. With all this in mind, market analysts continue to suggest that a possible “soft landing” by the Fed is less likely. Simply put, analysts over at JPMorgan (NYSE: JPM) argue that the S&P 500’s current losses imply an 85% chance of recession. For the week ahead, investors will likely be tuning in to Fed chair Jerome Powell again. Accordingly, he is set to testify before the U.S. Senate Banking Committee on Wednesday morning.
In Powell’s words, “We’re not trying to induce a recession now, let’s be clear about that,” He adds that he and his team are “acutely focused on returning inflation to our 2% objective.” As of 4:48 a.m. ET, the Dow, S&P 500, and Nasdaq futures are trading higher by 1.65%, 1.86%, and 2% respectively.
Spirit Airlines In The Spotlight As JetBlue Raises Takeover Offer
On the airline industry front, shares of Spirit Airlines (NYSE: SAVE) are coming into focus yet again. For the most part, this is likely thanks to the latest update from JetBlue (NASDAQ: JBLU) regarding the takeover saga. In brief, JetBlue is currently in the running to acquire Spirit alongside rival airline firm Frontier Group (NASDAQ: ULCC). As travel demand continues to pick up across the board, “ultra-low-cost carriers” such as Spirit would be go-to’s for consumers looking to fly. Because of this, Monday’s deal update from JetBlue would have this story making headlines in the stock market today.
Getting into it, JetBlue is raising its current offer to acquire Spirit to $33.50 per share. This would represent a sizable $2 per share price increase on JetBlue’s end. Following this increase, Spirit stockholders could receive a payment of $32 per share should JetBlue win the takeover war. Additionally, there will also be a prepayment of $1.50 per share in cash, according to JetBlue’s official statement.
Speaking on all this in further detail is Jetblue’s CEO, Robin Hayes. He states, “After discussions with the Spirit team last week and further due diligence review, we are more convinced than ever that a JetBlue-Spirit transaction would create a true national competitor to the Big Four and deliver value to all of our stakeholders.” Not to mention, even analysts over at JPMorgan appear bullish on SAVE stock because of all this. The firm recently upgraded SAVE stock to an ‘Overweight’ rating from ‘Neutral’, citing the likelihood of a deal. Because of this, I could see investors eyeing SAVE stock at the opening bell later today.
Pfizer Acquires 8.1% Stake In Valneva In Efforts To Bolster Lyme Disease Vaccine
In other news, pharmaceutical industry titan Pfizer (NYSE: PFE) appears to be hard at work expanding its portfolio. As of yesterday, the company is buying an 8.1% stake in a French biotech firm, Valneva (NASDAQ: VALN). For some context, Valneva primarily operates as a vaccine maker. Its developmental pipeline is currently focusing on commercializing vaccines for infectious diseases. Among these would be Lyme disease. Notably, this would be among the key reasons for Pfizer’s move on the company. Overall, the duo, since 2020, have been and still are working on the development of a Lyme disease vaccine, VLA15. According to Pfizer and Valneva, VLA15 is set to go into late-stage trials in the third quarter of the current year.
Through the current agreement, Pfizer will be investing $95 million into Valneva. This would represent 8.1% of its share capital at about $9.99 per share. According to Valneva, this latest round of investments will directly contribute to the Phase 3 development of its VLA 15 program. For one thing, Pfizer appears to be hard at work growing its offerings even as the pandemic persists globally. As the company continues to diversify beyond Covid-19, investors could be considering PFE stock in the stock market now.
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Chevron and Egypt To Look Into New Mediterranean Gas Deal
Meanwhile, Chevron (NYSE: CVX) is building its relations in the Middle East now. On the whole, this is apparent following its latest operational update regarding its operation in Egypt. According to Chevron, it has signed a memorandum of understanding with Egypt’s state-owned gas company EGAS. Through the current agreement, the duo are planning to explore sending natural gas from offshore Mediterranean fields to Egypt. Once there, it will go through processing for export.
According to the Egyptian petroleum ministry, Chevron is planning to drill its first exploration well in the eastern Mediterranean Sea. This would be off the coast of Israel. Furthermore, Chevron is also considering gas monetization options in the region as well. The likes of which, according to the report, would include floating liquefied natural gas (LNG) tech. Should the duo come to a deal, Chevron notes that it aims to make gas available to Egypt’s domestic market. As such, it would not surprise me to see CVX stock gaining attention later.
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Bitcoin Regains Momentum After Hitting 2017 Levels Over Weekend
Bitcoin (BTC) appears to be finding its footing after two back-to-back weekends of sell-offs. As it stands, the leading cryptocurrency is currently at a value of above $20,000. Even so, over the recent weekend, Bitcoin hit a low of $17,601.58. This comes at a time when waves of economic uncertainty continue to impact riskier assets. Accordingly, this would include the likes of cryptocurrencies such as Bitcoin and Ethereum (ETH) among others.
Weighing in on this is crypto market analyst Yuya Hasegawa from a Japanese Bitcoin exchange Bitbank. He argues, “Bitcoin’s weekend dip was, to put it simply, not deep enough.” Hasegawa explains, “The macro environment has not really changed from last week’s FOMC meeting: there still has not been a clear sign of inflation coming down and the Fed may still drive the economy into recession by raising rates too aggressively or simply by failing to tame inflation.” After considering all of this, we could see further volatility in the crypto space this week.
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FTSE 100 gains as commodity-linked stocks bounce back
The commodity-heavy FTSE 100 gained 0.4%, while mid-cap FTSE 250 index inched up 0.3% UK’s FTSE 100 gained on Monday, as an easing of COVID-19 restrictions…
The commodity-heavy FTSE 100 gained 0.4%, while mid-cap FTSE 250 index inched up 0.3%
UK’s FTSE 100 gained on Monday, as an easing of COVID-19 restrictions in China brought relief to commodity prices, lifting shares of major oil and mining companies.
As of 0704 GMT, the commodity-heavy FTSE 100 gained 0.4%, while mid-cap FTSE 250 index inched up 0.3%.
The risk sentiment improved after a Wall Street rally late last week and a rebound in copper and iron ore prices on Monday, boosted by an easing COVID-19 restrictions in Shanghai and relaxed testing mandates in several Chinese cities.
The burst of global enthusiasm for equities has put a spring in the step of the FTSE 100 at the start of the week, Hargreaves Lansdown analyst Susannah Streeter said.
Mining stocks led gains on the FTSE 100 index, with Anglo American, Rio Tinto and Glencore rising more than 3%, after Group of Seven leaders pledged to raise $600 billion private and public funds in five years to finance needed infrastructure in developing countries.
It is hoped this scheme, seen as a counter to China’s Belt and Road Initiative, will set off a spurt of spending and demand for commodities around the world, Streeter added.
Among individual stocks, CareTech surged 20.8% after the UK-based provider of care and residential services agreed to be acquired by a consortium led by Sheikh Hoidings in an 870.3 million pounds ($1.07 billion) deal.
Carnival Corp jumped 5.6%, extending its Friday gains after the leisure travel company forecast a positive core profit for the current quarter despite surging costs.
London-listed shares of Rio Tinto added 2% after a U.S appeals court ruled that the federal government may give the UK copper miner a right to lands in Arizona.
BAE Systems inched up 0.4% after the defence company received a $12 billion contract from the U.S Department of Defence.
Hot Penny Stocks to Buy This Week? 3 For Your List
Can these penny stocks continue to climb
The post Hot Penny Stocks to Buy This Week? 3 For Your List appeared first on Penny Stocks to Buy, Picks, News…
3 Hot Penny Stocks to Add to Your Watchlist This Week
Let’s face it, finding penny stocks to buy is not easy. And over the past few months, it has been increasingly challenging to make money with small caps. Now, while this may be true, not every investor has lost money in that time. Rather, to make money with penny stocks, traders have to be extra careful and know what penny stocks to buy.
There are a few key things to look for when finding penny stocks to buy. The first is a reason that it may move. When penny stocks shift up or down, there are numerous causes. But, most penny stocks will have a fundamental reason to do so. This could be a new product launch, an FDA approval, or anything else that would increase demand for the company’s shares.
The second is liquidity. This is key because you need to be able to buy and sell penny stocks quickly. If there is not enough liquidity or shares traded in a day, you may be stuck with your penny stock.
The last is price. You obviously want to buy penny stocks that are cheap, but you also want to make sure that the company is valued appropriately. This means looking at its fundamentals and understanding why it is at its given value. With all of this in mind, let’s take a look at three penny stocks to add to your watchlist this week.
3 Penny Stocks to Watch This Week
- Visionary Education Technology Holding Group Inc. (NASDAQ: VEDU)
- RLX Technology Inc. (NYSE: RLX)
- Uranium Energy Corp. (NYSE: UEC)
Visionary Education Technology Holding Group Inc. (NASDAQ: VEDU)
One of the largest gainers of the day on June 27th was VEDU stock. By EOD, shares of VEDU had shot up by more than 30% with an over 5% after-hours gain. And, in the past five days, shares of VEDU stock have exploded by over 120%. These major gains come alongside no recent news. The most recent news however, came on May 19th.
On the 19th, the company announced the closing of its $17 million firm commitment IPO. This came with 4.25 million shares at a public offering price of $4 per share. For some context, Visionary Education is a Canadian based company offering high-quality education resources to students around the world. While it has fallen from its IPO price to around $2.60, its recent bullish momentum is exciting without a doubt. So, with all of this in mind, will VEDU be on your penny stocks watchlist or not?
RLX Technology Inc. (NYSE: RLX)
With over 3% in gains during trading and after hours on June 27th, RLX is another penny stock that investors are watching right now. In the past month, we’ve seen shares of RLX climb by more than 19%, which is no small feat. The most recent news from the company came in the form of its unaudited Q1 2022 financial results. In the results, the company saw its net revenue decline slightly, however, it stated that this was due to the pandemic.
“During the first quarter of 2022, we continued to focus on our core strategy and maintain our leading position in the industry while preparing for the anticipated regulatory changes.
As the new regulatory framework has come into effect and detailed implementation measures have been released, we are proactively adapting our business to the new market environment by applying for the relevant licenses and developing qualified products that meet the requirements of the most recent national standards.”The CEO of RLX Technology, Ms. Ying Wang
While this news was not ideal, it did bring shares of RLX stock down to lower levels. And as a result, its recent bullish momentum could be due to RLX being at value prices. Whether this makes RLX worth adding to your list of penny stocks to buy, is up to you.
Uranium Energy Corp. (NYSE: UEC)
On June 27th, UEC stock saw modest gains however, it did post abnormally high volume. And because of this, many investors are keeping a close eye on it right now. The most recent update from the company came on June 22nd, when it announced its entrance into a definitive agreement with UEX Corporation. It stated that it would acquire all of the outstanding shares of UEX with a C$5 million private placement.
This is big news for the company and should add to its large and growing business. If you’re not familiar, Uranium Energy is a uranium mining company. And, recently, we’ve seen heightened interest in alternative energy penny stocks. And although UEC is highly volatile, it is an interesting penny stock to watch. With this considered, does UEC deserve an addition to your watchlist or not?
Which Penny Stocks Are You Buying Right Now?
After a relatively flat day of trading, investors are looking for the best penny stocks to buy this week. That involves understanding what factors are impacting the stock market, and how we can use those to benefit.
Although trading is not easy, there are plenty of ways to find penny stocks to buy in 2022. So, with this in mind, which penny stocks are you buying right now?
The post Hot Penny Stocks to Buy This Week? 3 For Your List appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.nasdaq stocks pandemic penny stocks fda small caps
When bad news is good news
After the very sharp sell-off in the share market, the recent rally is indicative of a mood where bad news is good news. Specifically, the recognised slowdown…
After the very sharp sell-off in the share market, the recent rally is indicative of a mood where bad news is good news. Specifically, the recognised slowdown in the English-speaking economies likely means the various Central Banks will not be required to increase official cash rates by the amount that most forecasters had assumed.
To reiterate, due to the tax via the increased prices for food, fuel, electricity and gas, combined with downward pressure on house prices from rising interest rates, plus the indebtedness of the Western world consumer, I am not nearly as pessimistic as most market commentators on the belated Central Bank tightening regime.
Australia’s household debt to GDP ratio
And to summarise where we see the current environment:
- While they maintain a 2-3 per cent inflation target – most Central Banks are late in their tightening cycle. They cannot risk cooling down economic activity too much within their levered systems without causing too much consequential pain.
- The US S&P 500 Index has declined 23 per cent and this is discounting some fears of recession. Nevertheless, bottom-up analysts have yet to meaningfully move on the potential earnings downgrade cycle, given the severity of the slowdown, for Fiscal 2023.
- 81 per cent of stocks listed on the NYSE are down more than 20 per cent from their 52-week highs, meaning we have experienced a broad-based sell-off. Many highly priced quality companies and smaller companies generally have been hit much harder.
- The US Federal Reserve is likely to raise rates by 0.5 per cent at their next meeting in late-July 2022 to 2.0 per cent, and I expect another 0.25 per cent tightening thereafter.
- Markets rely on liquidity and a change in the rhetoric on monetary policy from the US Federal Reserve is probably needed before we can be confident ‘the bottom’ is near.
- Some commentors are looking for upcoming weakness in the hiring plans by small businesses – and that is expected to lead the unemployment rate by four months.
- Keep a close eye on “Doctor Copper” – a key indicator of global industrial activity. After rallying from US$2.10/lb during the COVID-19 lows of March 2020 to US$5.00/lb in March 2022, the Copper price has since declined by 25 per cent to US$3.74/lb.
- As with the Global Financial Crisis, stimulus from China will help offset some of the slowing we expect in Europe and the US and could assist with a pull-up effect for Australia.
You can read my previous article here: The size of the hangover usually corresponds with the size of the partyrecession unemployment covid-19 stimulus sp 500 stocks monetary policy federal reserve gdp interest rates unemployment stimulus europe china
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