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US Close – Stocks bounce back on sales and sentiment data, Oil choppy on Libya concerns, Gold remains stuck

US Close – Stocks bounce back on sales and sentiment data, Oil choppy on Libya concerns, Gold remains stuck

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US stocks pushed higher after a mixed bag of data made investors focus on the resilience of the American consumer.  Risk appetite made a return after retail sales posted a larger-than-expected increase.  Earlier, an incremental update with Pfizer’s coronavirus vaccine boosted optimism that they could seek emergency use authorization sometime in November.  Pfizer’s news really didn’t reveal anything new but was considered positive given the last couple of coronavirus updates announced pauses in clinical trials with J&J (vaccine) and Eli Lilly (treatment).  

The US industrial production reading for September was a big miss and exemplifies concerns that the manufacturing recovery has hit a wall.  Stocks held onto their gains given the greater importance the retail sector is compared to manufacturing. 

The preliminary consumer sentiment reading from the University of Michigan was fairly positive after the headline index rose sharply and expectations index continued to rise.  Current conditions dipped and the 12-month inflation expectations ticked higher to 2.7%, while the 5-to-10-year expectations dropped to 2.4%.  Service spending continues to struggle due to the coronavirus but spending on goods remains robust and now above pre-COVID levels. 

Equities should continue their painstaking consolidation until the election passes and the fiscal stimulus question gets answered.  While COVID-19 continues to spread like wildfire across the US, investors are completely fixated on the fast recovery with GDP that will unfold at the end of the month.  The second quarter contracting by 31.4% is expected to be countered by a 32.0% rebound in the third quarter. 

Oil

No clear trend exists for oil prices.  The steady rise in coronavirus cases across US and Europe will likely yield new restrictions that will disrupt the crude demand rebound story.  OPEC+ seems to have comforted markets that they are leading the oil market to balance, but Libya’s oil production revival might complicate the supply side narrative. 

The dollar’s rebound has weighed on oil prices but that seems like it will only be temporarily.  The dollar’s fate is tied to the presidential election outcome and that should prevent commodities from completely breaking out.  The base case appears to be a democratic blue wave which appears to be the worst-case scenario for the dollar and most supportive for crude prices. 

Gold

Gold prices are off session highs after a strong retail sales report dampened whatever prospects remained for a fiscal stimulus breakthrough before the election.  If the US consumer remains strong, the ultimate size of stimulus will likely be a lot smaller than what is currently being discussed.  Gold’s trading range leading up to the presidential election seems poised to be between the $1850 and $1940 zone. 

Gold’s longer-term bullish outlook remains very bullish, but an extended consolidation phase could see many investors tentatively abandon bullish bets.  If the euro tanks as lockdowns return across Europe, a strong dollar could be a headwind for gold.  A significant pullback for gold seems unlikely as the stimulus outlook for the US is massive, but likely to be delayed until 2021.  

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Spread & Containment

4 Best Shoe Stocks to Buy Right Now

Here’s a list of some of the best shoe stocks to buy. Footwear companies are easy to understand and can reward shareholders.
The post 4 Best Shoe Stocks to Buy Right Now appeared first on Investment U.

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Shoes are one of the few products in the world that are pretty much universal. This makes shoe stocks fairly easy to understand. No matter your age, race, sex, religion, height or weight it’s a given that everybody needs to own at least one pair of shoes. Shoes also wear out and need to be replaced once a year or so. For this reason, shoes are close to being a commodity good.

On the other hand, many people also treat shoes as a status symbol and own hundreds of different pairs. It’s not uncommon for some pairs of shoes to sell for hundreds, if not thousands of dollars. For this reason, shoes can also be seen as a luxury good.

For both of these reasons, it’s not a bad idea at all to consider adding a few shoe stocks to your portfolio. So the question is, what are the best shoe stocks to buy?

To help answer this question, I’ve put together a quick list of my favorite four shoe stocks to buy.

Best Shoe Stocks

Note: I’m not a financial advisor and am just offering my own research and commentary. Please do your own due diligence before making any investment decisions.

Nike (NYSE: NKE)

Unsurprisingly, Nike makes the top of the list of best shoe stocks to buy (not that these lists are ever really in order.) Nike is a member of the Dow Jones (the 30 most valuable companies in the United States). It routinely crushes its earnings expectations and has one of the most valuable brands in the world.

Despite being incredibly popular for years, it continues to innovate, sign top athletes and tighten its stranglehold on the apparel industry. This is part of the reason that Nike’s stock is up 185% in the past five years and it set an all-time high in terms of revenue in fiscal year 2021.

The biggest concern for Nike in the short term is still fall-out from the COVID-19 pandemic. Nike weathered the pandemic in 2020 fairly well and only experienced a 4% decline in revenues. However, the pandemic is still raging in many countries where Nike produces the bulk of its shoes. In particular, it could lose 160 million pairs of shoes due to COVID-19 related factory closures in Vietnam.

I’ve written about Nike before in my Nike Stock Forecast so feel free to give this a read for a more in-depth review of the company behind The Swoosh.

If you’re not a fan of Nike, then Adidas is another major shoe stock to consider buying. Also, Nike makes my list of the top fashion stocks. Click on that link to see those investing opportunities.

Crocs (Nasdaq: CROX)

What if I told you that Crocs’ stock had a better 5-year performance than Facebook, Apple, Amazon, Netflix and Google combined? Would you believe me?

It doesn’t matter if you do or not, because it’s true. For the period from late 2016 to late 2021, Crocs’ stock returned just over 1,700%. Compare this the same period for Facebook (+170%), Apple (+400%), Amazon (+300%), Netflix (+500%), Google (+240%) for a grand total of 1,610%. Not bad for a company that makes rubber clogs and is often treated as a joke.

One of the key drivers to Crocs’ success is that it’s mastered the art of the collaboration. Despite seeming like an unpopular brand, there are countless examples of Crocs endorsements from high-profile people. A handful of celebrities who own and rep a pair of Crocs are Kevin Hart, Kendall Jenner, Justin Bieber and plenty of others. So how have these collaborations paid off?

Crocs posted revenue of $1.4 billion in 2020 and a net income of $313 million. It is also becoming more profitability over the past few years. Its net income has climbed by 229% on average since 2019. It also holds valuable digital real estate at the #2 bestsellers spot on Amazon.

Crocs’ stock was up over 50% in 2020 and is up over 1,700% over the past five years.

On Running (NYSE: ONON)

When compared to incredibly successful shoe stocks like Nike and Crocs, On Holding is very much a newcomer. In fact, On IPO’d just weeks ago.

If you haven’t heard of On Holding, that’s because it’s mainly a European brand and is based in Switzerland. However, its popularity is slowly starting to spread to larger markets. Mainly, the United States.

A search on Google Trends (which measures Google search traffic) shows that searches for queries like “On Running” have been spiking in certain states. In particular, On Holding’s Cloud shoes are incredibly popular in states like Alabama and Mississippi. If this success goes mainstream in the U.S., particularly in massive markets like California or New York City, then this shoe stock could take off in a hurry.

Since it just went public recently, there isn’t a ton of financial information available for On Holding yet. However, you can learn more by checking out our On IPO article. The company has sold 17 million products to date and has a leadership team that’s 43% female.

On Holding’s shares jumped 46% in its first day of trading.

Dick’s Sporting Goods (NYSE: DKS)

The fourth of the best shoe stocks to buy is Dick’s Sporting Goods. This is obviously not a pure shoe stock, however, Dick’s does make a good portion of its sales from selling footwear.

Dick’s was unphased by the pandemic and posted a 2020 revenue of $8.75 billion, which was on par with previous years. It also succeeded in posting a profit of just under $300 million.

One thing that’s interesting to note is that Dick’s Sporting Goods’ stock is intertwined fairly closely with Nike. Since Nike is the most valuable sports brand, it makes sense that Nike apparel makes up a big portion of Dicks’ sales. In some cases, this can be a good thing.

For example, Nike has made it known that it’s making a major push to grow its presence in female sports. Piggybacking off of that, Dicks’ recently signed a multi-year deal to become the official retail partner of the WNBA. If Nike WNBA products become popular, Dick’s Sporting Goods will become one of the only places to buy them.

However, this symbiosis goes both ways. If Nike faces production troubles in Vietnam due to factory closures, this could turn into a problem for Dick’s Sporting Goods.

Dick’s Sporting Goods has also done a great job of fending off eCommerce competitors like Amazon by creating “experiential stores.” During Q2 of 2021, it converted about 25 stores to be premium full-service footwear stores and added 50 new elevated soccer shops. Its Trackman performance golf technology, which is in almost all of its stores by this point, is another big draw for shoppers.

Dick’s has been able to fend off the threat of eCommerce, as well as overcome a once-in-a-lifetime pandemic, This shows signs of this shoe stock’s resilience.

Dick’s Sporting Good’s stock was up about 20% in 2020 and is up 122% over the past five years.

If you’re looking for another major retailer that sells shoes, consider Designer Brands (the owner of DSW).

Investing in Shoe Stocks and New Opportunities

I hope that you’ve found this article valuable in determining the best shoe stocks to buy! As usual, all investment decisions should be based on your own due diligence and risk tolerance.

If you’re looking for even more investing opportunities, check out these fashion stocks. Also, feel free to sign up for Liberty Through Wealth below. It’s a free e-letter that’s packed with tips and tricks. With that research, you’ll uncover some of the most profitable investment trends.

The post 4 Best Shoe Stocks to Buy Right Now appeared first on Investment U.

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5 Penny Stocks to Watch That Exploded Today, What You Need to Know

These penny stocks exploded during today’s trading session, are they worth watching or not?
The post 5 Penny Stocks to Watch That Exploded Today, What You Need to Know appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.c…

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These 5 Penny Stocks Climbed Today, Are They On Your Watchlist?

On September 23rd, many penny stocks and blue chips managed to climb by midday. This is the result of early-week bearish sentiment and a resulting bullish turnaround. If you’ve invested in penny stocks in the past year, you likely have experienced major industry volatility. This is a symptom of Covid, inflation, and certain geopolitical events. 

And as a result, every day seems to carry a high amount of market fluctuations. So, investing in penny stocks in 2021 is unlike any other year, however, this increased momentum means that there is a lot to take advantage of. The best way to do so is to have both a trading strategy and a strong trading education by your side. 

[Read More] Are Penny Stocks on Your Watchlist? If So, Check These 3 Out

The combination of these will help to minimize losses and increase the potential profitability of your trades. In addition, having a thorough understanding of the current market conditions will help you to predict potential price movement. And as a result, it may be easier to make money with penny stocks. Considering this, here are five small caps that exploded today. 

5 Penny Stocks That Exploded During Today’s Trading Session 

  1. Transcode Therapeutics Inc. (NASDAQ: RNAZ
  2. Matinas BioPharma Holdings Inc. (NYSE: MTNB
  3. BEST Inc. (NYSE: BEST
  4. ReWalk Robotics Ltd. (NASDAQ: RWLK
  5. Senmiao Technology Ltd. (NASDAQ: AIHS)  

Transcode Therapeutics Inc. (NASDAQ: RNAZ) 

One of the biggest gainers of the trading day so far is Transcode Therapeutics Inc. By midday, shares of RNAZ stock managed to shoot up by over 57%. This brings its five-day gain to over 60%, which is more than substantial. While gains like this can occur without news, Transcode made an exciting announcement during premarket on September 23rd. 

[Read More] Do These Penny Stocks Deserve a Place On Your Watchlist?

If you’re not familiar with Transcode, the company is an oncology-focused biotech business working with RNA-based therapeutics. Its drugs are produced with the intention of treating different cancer types including its leading therapeutic candidate, TTX-MC138. This compound is in use as a treatment for metastatic cancer, which according to the company, is responsible for 90% of all cancer deaths per year worldwide. Today on September 23rd, the company stated that clinical data from TTX-MC138, was published in the medical journal, Cancer Nanotechnology. 

“Our TTX technology builds upon prior experience with similar iron oxide nanoparticles that have long been used in humans for imaging, potentially enabling clinical studies that may de-risk future clinical trials by demonstrating successful drug delivery and assist in patient selection for future treatment.” 

Michael Dudley, the CEO of Transcode

This is a big deal for the company and shows the potential success of its leading drug candidate. Considering that RNAZ stock does look highly volatile, it could be worth adding to your watchlist in September. Whether it’s worth buying or not, however, is up to you. 

Matinas BioPharma Holdings Inc. (NYSE: MTNB) 

Another decent gainer of the day so far is MTNB stock. By midday, shares of MTNB had shot up by over 5% which is no small feat. This brings its one-month gain to a very sizable 100%. While no company-specific news came out today, it did make an announcement on Monday of this week. But before we get into it, it’s worth discussing the company and other possible causes of the recent momentum. 

For one, the biotech industry is heating up right now. As evidenced by several other major biotech penny stock gainers, we are witnessing solid bullish momentum in the biotech industry. On September 20th, the company announced that it has nominated Kathryn Penkus Corzo for its Board of Directors. While the official election will take place on November 1st, the company states that Ms. Corzo has a very solid track record. 

Only a week or so before this, the company announced highly positive data from its Phase 2 EnACT trial of MAT2203 for cryptococcal meningitis. In the study, all 39 patients achieved sterility and none reported a breakthrough or recurring infection during the first ten weeks. This is very encouraging and shows the potential that this drug could have. So, if we look at all of this data wholly, we see that MTNB is in a very advantageous position as it related to its potential future. With this in mind, will MTNB stock be on your watchlist?

Penny_Stocks_to_Watch_Matinas BioPharma Holdings Inc. (MTNB Stock Chart)

BEST Inc. (NYSE: BEST) 

One of the most consistent gainers of the day and of the past few weeks is BEST stock. Today, shares of BEST stock shot up by as much as 11% and in the past five days by over 40%. In the past month, shares have shot up by over 92%. 

While these gains are exciting, what’s more, exciting is the chart for BEST shows a very stable climb during that period. BEST Inc. for some information, is a smart supply logistics provider in China. It offers a large set of logistics services, freight delivery, and supply chain management products to ensure freight gets delivered on time and is completely trackable. Ahead of its upcoming 2021 Annual General Meeting on October 20th, we can look at why shares of BEST Inc. have been skyrocketing in recent trading sessions. 

[Read More] Top Penny Stocks To Buy The Dip According To Analysts In September

According to a report that came out today, one of BEST’s shareholders, Alibaba Group Holding Ltd., could be considering selling the logistics business. BEST Inc. is working with a financial advisor and is seeking a potential valuation of over $1 billion. If the sale occurs, it would be a big deal for both the company and investors alike. And as a result, shares have been shooting up on higher volume during the past few trading days. Whether this makes BEST Inc. a worthy addition to your watchlist or not is up to you.

Penny_Stocks_to_Watch_BEST Inc. (BEST Stock Chart)

ReWalk Robotics Ltd. (NASDAQ: RWLK) 

Moving down the list of major gainers for the day on September 23rd, we see RWLK stock with a midday rise of over 32%. To understand why RWLK stock is moving, we have to take a look at its short squeeze potential. ReWalk is known as a meme stock, which is a stock that rises based on social sentiment. We saw this with GME stock, AMC stock, and a plethora of others over the past year and a half. And, many of these stocks are driven by their short squeeze potential. While ReWalk does have promise as a producer of exoskeletons, it does not seem like this is what’s driving its price. 

Rather, traders have come together across social media to invest in RWLK, effectively driving its price up substantially. In the past five days, shares of RWLK stock have shot up by over 88% bringing its one-year gain to over 118%. In its second-quarter results, ReWalk managed to bring in more than $1.4 million in revenue with over $64 million in cash on hand. 

“The second-quarter results reflect the ongoing reopening of the markets. We are now able to trial many new individuals who had been waiting and filled our pipeline during the pandemic. Our focus on achieving broader coverage in Europe and the United States has also been encouraging.”

Larry Jasinski, the CEO of ReWalk

All of this news is exciting, however, investors should be careful considering the high volatility of RWLK stock right now. But, if you are inclined to invest in riskier companies, ReWalk Robotics could be worth taking a look at. 

Penny_Stocks_to_Watch_ReWalk Robotics Ltd. (RWLK Stock Chart)

Senmiao Technology Ltd. (NASDAQ: AIHS) 

By midday, shares of AIHS stock had climbed by over 8%, bringing its five-day gain to almost 30%. Based in China, Senmiao is a provider of automobile-related transaction services. This includes the facilitation of leasing, purchasing, and other car buying needs. But, in addition to this, it also operates its own ride-hailing platform. 

Only a week or so ago, the company announced metrics from its platform, which showed that in August, it completed over 530,000 trips. Since the launch, the company states that it has completed over 12.7 million rides. This is a major number and shows that it could become a leader in the ride-hailing market in China. In addition, only a few days before this the company stated that it entered into a cooperation agreement with Shanghai Lutuan Technology. 

Xi Wen, CEO of Senmiao stated that “we are pleased to continue our partnership with Meituan under this new model, whereby we provide Meituan with access to our network of cars and drivers in Chengdu and Guangzhou.” Because of its sizable gains in the past week, AIHS stock could be worth looking into. 

Penny_Stocks_to_Watch_Senmiao

Which Penny Stocks Are You Watching Right Now?

Finding the best penny stocks to buy in 2021 can be complicated. But, with the right research and commitment to having a trading education, it can be much easier to make money with penny stocks.

[Read More] Top Penny Stocks You Need to Know About Right Now

And, with so much going on in the stock market, there is plenty of momentum to take advantage of. So, considering all of this, which penny stocks are you watching right now?

The post 5 Penny Stocks to Watch That Exploded Today, What You Need to Know appeared first on Penny Stocks to Buy, Picks, News and Information | PennyStocks.com.

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Norway Becomes First Developed Central Bank To Hike Rates Post-COVID

Norway Becomes First Developed Central Bank To Hike Rates Post-COVID

In a time of soaring prices, central bank tightening has now become all the rage (except in Turkey of course which just surprised markets with a 1% rate cut, sending the…

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Norway Becomes First Developed Central Bank To Hike Rates Post-COVID

In a time of soaring prices, central bank tightening has now become all the rage (except in Turkey of course which just surprised markets with a 1% rate cut, sending the lira plunging to all time lows), and one day after Brazil hiked rates by 1% to 6.25% with promises to do the same next month and even the Fed turning hawkish and revealing the taper will start "soon", most likely in November (even if the first US rate hike is expected to come well in late 2022), overnight Norway's central bank, the Norges Bank, become the first major Western central bank to raise interest rates following the onset of the coronavirus pandemic.

After cutting rates three times in 2020 due the economic fallout from the crisis, on Thursday Norway’s central bank unanimously decided to raise rates to 0.25% from zero, in line with expectations.

“The reopening of society has led to a marked upswing in the Norwegian economy, and activity is now higher than its pre-pandemic level. Unemployment has fallen further, and capacity utilisation appears to be close to a normal level,” the bank said in the statement.

"A normalising economy now suggests that it is appropriate to begin a gradual normalisation of the policy rate,” said Governor Oystein Olsen in a statement, adding that another rate hike is likely coming in December: “Based on the Committee’s current assessment of the outlook and balance of risks, the policy rate will most likely be raised further in December”.

The projected policy rate path was revised up from late-2022 onward, rising to 1.7% at end-2024. The decomposition shows higher inflation on the back of higher capacity utilization and a weaker krone accounting for most of the change since June (Exhibit 1). The Committee stressed that longer-term inflation expectations remain anchored and that the risk of inflation becoming too high is limited.

The updated economic projections in the Monetary Policy Report (MPR), which was also published today, show a larger positive output gap from 2022 onward, and the inflation outlook was revised up accordingly. Norges Bank now forecasts core inflation to reach 1.9% at the end of the forecast horizon, up from 1.6% in the June MPR.

Norway’s currency rallied to its highest levels since June, gaining 0.7% against the U.S. dollar.

 

Tyler Durden Thu, 09/23/2021 - 11:00

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