Investors are returning from the extended holiday in an upbeat mood, with some attributing that optimism to an imminent change of guard at 1600 Pennsylvania Avenue.
The S&P 500 SPX,
rose about 0.3% in the year after the retraction of last week. This pales in comparison to some assets, with bitcoin BTCUSD,
another 27% this year, after a 300% return in 2020. And electric car maker Tesla TSLA,
it has gained 17% so far in 2021, after a gain of about 700% last year.
Read: Tesla’s new $ 950 target for the Wedbush share price is the highest on Wall Street, but the analyst has not yet said he will buy
On that note, we move on to our call of the day, which has to do with bubbles. It is a survey recently published by Deutsche Bank, which asked, among other questions, where investors are seeing the foam now.
About 89% of respondents believe that markets are experiencing bubbles, and two stand out – U.S. tech stocks and bitcoin. The latter is approaching the territory of the “extreme bubble”.
“When asked specifically about the 12-month fate of bitcoin and Tesla – an emblematic stock of a potential technology bubble – most readers think they are more likely to cut it in half than double those levels, with Tesla more vulnerable according to readers, ”said strategist Jim Reid and research analysts Karthik Nagalingam and Henry Allen. Tesla will report fourth quarter earnings on January 27.
More bubble thoughts about bitcoin – the cryptocurrency reportedly topped the “most crowded position” in Bank of America’s monthly fund manager survey, taking technology stocks out of the top position.
When it comes to bitcoin, however, enthusiastic investors don’t seem to be frightened so easily:
Another question asked in the Deutsche Bank survey was whether a potential bubble burster – the Federal Reserve reducing its asset purchase program – was likely.
“71% of respondents do not believe the Fed will decline before the end of the year, which is in line with what the Fed governors had said vigorously at the end of last week, but a quarter of readers may think that economic growth / markets could force their hand, ”said Reid and the team.
Read: BlackRock CEO says big investor is easing valuation and inflation concerns
The markets
Futures of NQ00 technology stocks,
in fact, they are leading upwards, 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 cut its forecast for oil demand for 2021. Oil prices CL.1,
it seems unfazed.
The quote
“Only 25 doses were administered in a lower-income country – not 25 million, not 25,000 – only 25. I have to be frank: the world is on the verge of catastrophic moral failure.” It was the director general of the World Health Organization, Tedros Adhanom Ghebreyesus, who spoke harshly about the global inequalities in vaccines on Monday.
The buzz
Bank of America BAC,
stocks fell after profit that exceeded forecast, but disappointing on the revenue side, while Goldman Sachs GS,
stocks rose after good results. Giant streaming Netflix NFLX,
is due after closing. See the earnings forecast.
In a statement prepared before her confirmation hearings, Treasury nominee Yellen said that US policy must “act big” to help Americans struggling in the midst of the COVID-19 pandemic. It must also say that the United States does not want a weaker dollar.
The new Biden government says travel restrictions on coronavirus are in effect for travelers arriving in Europe and Brazil after President Donald Trump just lifted the ban. This occurs when the number of deaths from COVID-19 increases in 2/3 of the states of the USA.
The California state epidemiologist advised the suspension of the launch of more than 300,000 doses of MRNA from Modern Biotechnology,
vaccine, after possible allergic reactions of some recipients.
Coherent’s COHR,
the shares are flying after optical component maker Lumentum said it agreed to acquire the laser maker for $ 5.7 billion in cash and shares.
Western Union WU,
stocks are rising after the money transfer company announced a deal to be in stores at retail giant Walmart WMT,
The tweet
The graph
Also from this Deutsche Bank survey, some questions arose about vaccines and COVID-19 blockages. It seems that at the end of this year is when life is expected to return to “normal”.
And when it comes to getting vaccines, they seem more willing than they did last month:
Random readings
Like in that Tom Hanks movie? A California man made an airport his home for three months.
And Redditors have talked about everything they love and miss at airports now.
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