Investors should be careful and defensive in today’s market environment. We saw outdoor activities decrease, and indoor activities increase in 2020. Stay-at-home stocks emerged and fueled the market. I’ve identified four stocks positioned to gain if we start moving toward a similar situation because of the delta variant — and more in today’s stock market recap.
Stock Market Recap
Global markets are mostly lower as investors prepare for a heavy week of earnings and economic data.
The Federal Open Market Committee (FOMC) has a two-day meeting starting Tuesday, and a press conference on Wednesday. Investors are eager to learn of the impact of the recent COVID-19 spike on our economic recovery. New outbreaks have added to inflation fears and overshadowed positive corporate earnings this season.
In order for the stock market to be in tune and find a rhythm, the sectors have to be in line with each other. On a one-month basis, a few of the top sectors are trading together. On a cumulative basis, however, the market is fragmented, which is an indication of a coming pullback.
Interest rates and COVID-19 are moving the markets right now. Economic data this week should give us a fresh outlook for economic recovery and identify new risks from the resurgence of COVID-19 in the U.S.
Roger’s Radar: Top Defensive Plays
Bristol-Myers Squibb Co. (NYSE: BMY) is one of the largest pharmaceutical companies in the world, and BMY is breaking out from a high top. Pharmaceutical companies are less sensitive to interest rates and are positioned to do well with another rise in COVID-19 cases.
Another stock on my radar is a huge provider of consumer staples and is directly involved in the COVID-19 battle. There’s also a promising biotech ETF breaking out right now. The last pick is an online payment company with the chance to soar in another stay-at-home environment.
In this video, you’ll discover whether the markets are fragmented and what that means for you… whether markets are still overbought or beginning to stabilize… which sector offers the best risk/reward opportunity right now… and the top sector and stocks to buy for safe and outsized gains.
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.