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Investors return from the long vacation weekend in an optimistic mood, with some attributing the optimism over an impending change of guard at 1600 Pennsylvania Avenue. And we’ve got benefits and commentary from Biden’s top pick at Treasury, Janet Yellen, coming soon.
The S&P 500 SPX,
is up about 0.3% for the year following last week’s decline. This pales relative to some assets, with bitcoin BTCUSD,
still 27% this year, after a return of 300% in 2020. And the electric car maker Tesla TSLA,
has gained 17% so far in 2021, after around 700% gain last year.
Lily: Tesla’s new Wedbush stock price target of $ 950 is Wall Street’s highest, but analyst still doesn’t say buy
On that note, we turn to our call of the day, which is all about the bubbles. This comes from a poll that Deutsche Bank just released, which asked, among other questions, where investors are seeing the foam right now.
About 89% of respondents believe the markets are facing bubbles, and two stand out: US tech stocks and bitcoin. The latter is approaching the territory of the “extreme bubble”.
“Asked specifically about the 12-month fate of Bitcoin and Tesla – an emblematic stock of a potential tech bubble – a majority of readers think they are more likely to halve than double from these levels,” Tesla being more vulnerable according to readers, ”said strategist Jim Reid and research analysts Karthik Nagalingam and Henry Allen. Tesla will release its fourth quarter results on January 27.
More thoughts on bitcoin – the cryptocurrency reportedly surpassed the “most crowded position” in Bank of America’s monthly fund manager survey, bringing down tech stocks to the highest level.
When it comes to bitcoin, enthusiastic investors don’t seem to scare off so easily:
Another question posed in the Deutsche Bank investigation was whether a possible bubble burst – the Federal Reserve cutting its asset purchase program – was likely.
“71% of respondents don’t think the Fed will cut until the end of the year, which is in line with what Fed governors forcefully said late last week, but a quarter of readers could think economic growth / markets might force their hand, ”said Reid and the team.
Lily: BlackRock CEO Says Leading Investor Reports Concerns Over Valuations and Inflation
The steps
NQ00 technology equity futures,
on the other hand, lead the way up, followed by Dow and S&P 500 YM00 futures,
ES00,
with European SXXP shares,
and a mixed day for Asian markets. The International Energy Agency has reduced its oil demand forecast for 2021. CL.1 crude prices,
seem unfazed.
The quote
“Only 25 doses were given in a low-income country – not 25 million, not 25,000 – only 25. I have to be blunt: the world is on the brink of catastrophic moral failure.” It was the director-general of the World Health Organization, Tedros Adhanom Ghebreyesus, who had harsh words on global vaccine inequalities on Monday.
The buzz
Bank of America BAC,
stocks are down after better than expected earnings but disappointing on the income side, while Goldman Sachs GS,
stocks are up after good results. The streaming giant Netflix NFLX,
is due after closing. See the income overview.
In a statement prepared ahead of her confirmation hearings, Treasury candidate Yellen said US policy must “act big” to help struggling Americans amid the COVID-19 pandemic. She should also say that the United States does not want a weaker dollar.
The incoming Biden administration has said coronavirus-related travel restrictions remain for inbound travelers to Europe and Brazil, after President Donald Trump just lifted the ban. That’s when deaths from COVID-19 increase in 2/3 of US states.
The California State Epidemiologist advised to stop the deployment of more than 300,000 doses of Moderna biotechnology mRNA,
vaccine, after possible allergic reactions in some recipients.
Coherent COHR,
Shares soar after optical component maker Lumentum said it agreed to acquire the laser maker in a $ 5.7 billion cash and stock deal.
Western Union WU,
Shares skyrocket after the money transfer company announced a deal for the stores of retail giant Walmart WMT,
The tweet
Table
From that Deutsche Bank investigation, there were also some questions about COVID-19 vaccines and lockouts. It appears that later this year life is expected to return to “normal”.
And when it comes to taking vaccines, more seem willing than last month:
Random readings
Like in that Tom Hanks movie? A man in California has made an airport his home for three months.
And Redditors have gushed about everything they love and miss about airports right now.
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