We should get a good idea of how our economy is bouncing back and what inflation looks like after big banks report earnings next week. The Federal Reserve stands firm on their ‘transitory’ inflation stance but we continue seeing it push through the summer. I have two stocks on my radar that would benefit from a strong economy and rising inflation — and more in today’s stock market recap.
In the stock market recap, global stocks are mixed after Thursday’s pullback from all-time highs.
COVID-19 variants are causing investors around the world to worry about potential governmental measures as numerous countries reimplement precautions. Wall Street, however, is panicking about interest rates, not potential outbreaks. We would need to see widespread infections in the United States to really see the market react.
With earnings season kicking off next week, investors are paying close attention to the major banks. Wall Street will be analyzing earnings closely to assess inflation and the overall economy. As we get closer to the tapering of the bond-purchasing program, we could see higher volatility.
The Nasdaq and S&P 500 are both showing distorted levels. If they were representative of the stocks without market capitalization, the indexes would be trading around or below their 50-day moving averages. Only 36% of all stocks in the market trading above $2 are trading above their 50-day MA.
Brookfield Asset Management Inc. (NYSE: BAM) is a property asset management company focused on power and infrastructure. Its relative strength index is below neutral, and the stock has pulled back to its 50-day MA. BAM has a one-year return of 52.64%. This company should continue doing well if our economy continues to expand.
Another stock that could rise with inflation is a world-leader semiconductor company. Semiconductors are usually seen as inflationary and set apart from tech companies when it comes to interest-rate sensitivity.
In today’s video, you’ll discover which index is overbought… which Fed data is impacting stocks… whether bonds will rise or drop… whether tech will rise or fall… and two hot stocks I’m targeting right now.
Stocks finally pulled back, and a lot of traders might have taken a hit. The market is vulnerable right now, and investors need to have a disciplined approach to the market.
There’s a lot of data out there right now… It’s time consuming and easy to get lost.
What if there was a way to simplify trading? What if investors didn’t have to waste time poring over reports, financial documents and analyst opinions?
What if all that could just be tossed out?
Well, I say it can!
That’s mostly because all of those reports no longer matter…
You see, the only thing that does matter is this one simple line, and when a stock crosses that line… profits could soar!
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.