Maybe Monday was little for overrides.
One of the best market sessions in months was followed by a much slower trading round on Tuesday, although sales followed the theme “rotation to value” that we discussed in recent weeks.
The technically heavy Nasdaq Composite (-1.7% to 13,358) and Russell 2000 (-1.9% to 2,231) were hit by the steepest declines, while Dow Jones Industrial Average managed to slide away with a decline of only 0.5% to 31,391.
These losses came on a slow news day, although there was another positive development in the global fight against COVID. The days after Johnson & Johnson (JNJ, -0.2%) single-shot coronavirus vaccine was approved for emergency use in the United States, USA Washington Post reported that President Joe Biden would soon announce a rare deal that would see competition Merck (MRK, + 0.7%) increase the supply by producing more of JNJ’s vaccine.
The 10-year government return also pulled back to 1.41% – another seemingly bullish momentum in the middle of a market that had cut rising interest rates – but nothing seemed to attract the bulls’ interest on Tuesday.
Other measures in the stock market today:
- The S&P 500 decreased 0.8% to 3,870.
- Goal (TGT, -6.8%) fell sharply despite better-than-expected quarterly sales and profit; the company announced that it would reinvest $ 4 billion annually for several years to upgrade the technology, renovate its stores and make other improvements.
- Twitter (TWTR, -5.1%) withdrew in response to a $ 1.25 billion convertible debt offering.
- US crude oil futures improved 0.4% to $ 60.92 per barrel.
- Gold futures received 0.6% and decided on $ 1,733.60 per ounce.
- Bitcoin prices fell 1.5% to $ 47,563. (Bitcoin is traded 24 hours a day; the prices reported here are from 4pm every trading day.)
Yes, the growth is on the outside, but …
While there is a steady stream of news that points to high times of value, do not give up growth completely.
No matter what the current broad investment trends are, some technological, societal and other developments can simply not be ignored – and buying in the companies that address them can be a potent long-term recipe for success, especially when these companies are a bit in favor.
Choices that are ripe for this type of short-term pain, long-term gain include stocks tied to the expansion of 5G communications technology. This trend is hardly a secret, and many layers of space actually cool after months, even years, of expected gains. But that’s good news new buyers, as many of the benefits of a nationwide 5G deployment will take years to fully realize.
One way to put yourself ahead of the curve is to identify stocks that can not only float on 5G’s mission, but that have other bullish arguments to do right now … like these seven choices.