Stocks are lower on Thursday after Chinese real estate developer Evergrande announced a major deal fell through. Meanwhile, the Philadelphia Federal Reserve Manufacturing Index fell to 23.8 from the expected 25 in October. While a strong reading supports high inflation worries, a weaker-than-expected reading shows our global economy is still struggling from supply chain issues — and more in Thursday’s stock market recap.
I’ve also picked out my favorite energy stock and option play to trade this choppy market…
Stock Market Recap
In Thursday’s stock market recap, stocks opened lower before moving slightly higher.
Consumer discretionary and tech stocks have rallied over the past few days. So these sectors and other speculative names could pull back soon. Defensive stocks could also move higher along with bonds. Bonds will likely drop as interest rates go up, but we could see them bounce back temporarily.
Strong economic data supports the Fed’s actions to taper bond purchases and raise interest rates. However, Thursday’s manufacturing data doesn’t.
It may not be enough to stop or delay the Fed’s planned intervention, but it does cast doubt on our global economic recovery. Supply chain issues and the persistent pandemic have slowed down our “hot” economic recovery.
Roger’s Radar: Top Energy Stock and Option for This Week
Defensive stocks could take the lead as pressure piles up on large tech and other speculative stocks. I’ve picked out a company that produces and exports coal. Coal is the strongest commodity in the world right now. This name has an outstanding one-year return of 650%! It’s in the Russell 2000 and small caps have been crushing it lately. Check out Thursday’s video to find out which energy stock is my favorite, and how to trade its option.
In this video, you’ll discover whether tech and consumer stocks have another bull run left in them… which sectors are making a strong comeback… whether you should buy or sell bonds right now… how to interpret Thursday’s Fed news… an update on China and earnings in the U.S. … and the top stock and option — with profit target levels.
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