The Dow, Russell, S&P and Nasdaq indexes are enjoying a fantastic week so far as the chart below shows.
Tonight’s announcement by Amazon of a record $100 billion quarter in its earnings report should send Amazon futures rising. Amazon stock is up .3% after hours. Jeff Bezos announced he is stepping down as CEO and that should further aid stock prices.
Google Alphabet reported its earnings were up 23% YoY or $22.30 per share vs $15.90 per share as predicted. Aggressive advertising on Youtube paid off in a 46% leap in earnings. Alphabet stock is up 7% after hours.
The biggest losers today were of Gamestop, Blackberry, and AMC whom the Reddit Rebellion investors have eased off support. The Reddit rebellion has calmed down although they could return. See more of the top losing stocks below. Now investors can focus on the expert predictions and forecasts and plan their investment strategy for 2021.
With the summer recovery not far off (vaccinations are progressing well) the mood of the markets will lift over the next 6 months. The delay in stimulus funding by the Democrats is having bad effects on confidence, but investors might be beyond the winter misery and looking ahead 6 months to the summer recovery.
The CBO released its forecast for the next 5 years, and it projects Real GDP will grow fast this year, to reach its peak in mid-summer and growing through to 2025 with an average annual growth rate of 2.6%. This may have lifted the markets tonight and will give investors confidence. However, the projections are based on big exports and high capital investment spending.
CBO economic projections next 5 years.
Stock Market Today Feb 2, 2021:
- S&P 500: 3,826.21 ↑
- Dow Jones 30: 30,687.48 ↑
- Nasdaq : 13,612.78 ↓
- Russell 2000 : 2,149.60 ↑
- Crude Oil: $55.07 a barrel ↑
- Gold: $1,840.70 per ounce ↑
- US Dollar $91.04 ↑
Analyst experts are expecting strong growth through the next 3 month period into high performance by 6 months. Is this the right time to consider Russell 2000 stocks or even penny stocks? Or are the surging tech stocks the best stocks to buy?
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Screenshot courtesy of Yahoo Finance.
Huge pent up demand together with the continuously delayed Fed stimulus will give the markets a big lift within 6 months. See more on the experts stock market forecast.
Top Gaining Stocks
Smart investors are always paying close attention to the top gaining stocks. Pot stocks and biotech stocks seem to be in demand this week.
Screenshot courtesy of Yahoo Finance
Bank and Broker Forecasts
Goldman Sachs projects GDP will grow at a 5.3% pace in 2021 and forecasts a lower unemployment rate at 5.3%. They expect the S&P to rise 17% to 4,300 points, and driven by an expected 30% growth in corporate earnings. Morgan Stanley, Wells Fargo and LPL Financial see the S&P rising 6% to reach 3,900. Oppenheimer boldly sees it hitting 4300.
Jerome Powell recently called the economic recovery extraordinarily uncertain, which kind of keeps the ugly specter of a stock market crash alive in some investor’s minds. What is Powell really saying when he says the economy needs a lifeline?
Which were the Top Losing Stocks?
Screenshot courtesy of Yahoo Finance
Mining stocks dominate the list of best stock performers today.
Best Performing Sectors
Looks like financials are back in everyone’s good books.
Screenshot courtesy of CNBC.
The 2021 Stock Market Outlook
If the vaccinations are successful and delivered by June, and if the Republicans can block Biden’s tax increase bill, a stock market crash is unlikely.
Optimism reigns supreme:
- rising corporate earnings
- two rounds of stimulus likely
- after a small correction, growing consumer spending will energize earnings and stock prices
- winter season hasn’t turned out too bad for corporate earnings so far
- travel is already picking up and will by June boosting hotels, restaurants, and gasoline sales
- rising consumer confidence as employment grows
- the fear of Covid infections diminishes
- less strain on health care
- surgeries and hospital revenue resume driving demand for medical supplies
We’re still in tough during the next 3 months, but by the next 6 months, the recovery should be in full swing and carry on for many years.
Here are the best performing Mega Caps
Screenshot courtesy of Yahoo Finance.
See all the charts below for top gaining stocks.
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Stock market advisors have called this is a stock market bubble and Tesla is its poster child. Today, TSLA roared up 4% again to $872.79.
Tesla has a trailing-twelve-months P/E of 54.90. Its stock price is 54 times its earnings! Tesla is a great company, perhaps the next Amazon, but it will be a roller coaster ride for investors.
the Democrat house announced that they intend to break up big tech and disallow them from selling their products on their own monopolized networks. In response, Apple stock price, Google stock price, Amazon stock price, and other tech stocks fell. Others believe nothing will happen after the election.
With respect to the pandemic, it almost seems like the FDA is in no hurry to approve COVID vaccines and drugs to save lives immediately. Vaccine stocks were down as well. More investors and experts are concerned about a potential stock market crash. See more of the best stocks to buy below.
And 2021 stock market predictions are becoming fewer and far between as a litany of negative factors weigh in. Traditional and technical indicators simply haven’t been useful and investors have to start thinking on their feet with an eye on the big picture. Is this the right time to buy gold stocks and reduce your exposure on the Dow Jones, S&P, and NASDAQ?
Tesla Stock Price
While the FAANGS fight the current in troubled waters, you might take a good look at Tesla’s stock price. Of course, wait for a dip if you’re considering buying it.
Tesla, the symbol of new American manufacturing success, had their big battery day event and it was considered a flop. One stock market expert says Tesla’s stock price could crash and the majority of advisers seem to think Tesla is grossly overvalued and in for tough times. They examine fundamentals, but they keep forgetting about Tesla’s incredible market-leading brand.
Market leaders transcend data histories and P/E earnings ratios. The emotion and awe surrounding Tesla’s innovation and Elon Musk’s determination carries the stock just like it does with Google, Facebook, and Apple. Don’t forget about Tesla’s many innovative products such as solar roofs. In a Biden economy solar roofs would be in demand.
Only interested in the Fangs? Learn more about Google stock, Facebook stock, Apple stock, Amazon stock, and peer into the 3 month forecast.
Recently, the Fed’s J Powell promised to keep interest rates low, but that didn’t excite investors too much.
And investors and stock advisors are still processing the news from the FED, regarding inflation, and what that potentially means for the US economy. Investors are nervously anticipating the election in 3 weeks, as it will tell us whether the markets will push ahead in 2021 or slide into a market crash.
Besides tech stocks, oil stocks, 5G stocks, and gold stocks are you checking out airline stocks lately? Waiting for rock bottom? See the top gainer stocks below.
Stock experts are advising investors to buy more of the FAANG level stocks and less of small business. That’s understandable as the Russell has only been about as good as the Dow lately. It appears more money was chasing the best tech stocks such as Tesla, Apple, BioNTech, and Nvidia. BioNTech released good results from its vaccine tests.
Top Gaining Stocks, Sectors and Factors
See the list of best stocks to buy this week and check out hot housing stocks too.
The sectors with the most promise appear to be:
- medical and health care (biotech)
- consumer discretionary (travel, entertainment, retail)
- technology (computer hardware/software, and technological service industry companies)
- industrials (manufacturing, consumption and inflation drive commodity prices)
- real estate (builders, brokerages, multifamily, commercial)
- energy stocks (oil, green energy, electricity,
You can invest in promising sectors via sector funds.
Top Mid and Large Cap Stocks
All stocks except small caps:
Top Performing Mid and Large Caps
Screenshot courtesy of Yahoo Finance
Top Performing Small Caps (>$3)
Here’s where you can get rich quick if you make a good pick. See more on penny stocks to buy.
Screenshot courtesy of Yahoo Finance
Let’s take a roll call of the markets as of today:
- economy had record growth in 3rd quarter (33% growth)
- market climbed as investors seem optimistic
- corporate earnings will sour in the 4th quarter
- Fed says they’re not going to raise rates, and may not for years
- $5 trillion sitting in money markets
- Oil price is rising
- NASDAQ, S&P, and Dow keep reaching new records
- US dollar is falling
- new govnernemt ready to inject $3 trillion in stimulus
- Covid pandemic moving into its worst months
- trade war with China continues to heat up emotionally
- Facebook, Google and Amazon stocks under pressure of DOJ anti-trust investigations
- renter evictions, landlord bankruptcies looming
- unemployment claims rise after Covid resurgence grows shutdowns
Stock in no way justify the high prices. P/E are at record levels. Bargains will be hard to find.
Screenshot courtesy of New Constructs.
Institutional and retail stock market investors believe in the long term outlook of the US economy, but even so, concerns still persist about the next 6 months through the winter, if a vaccine isn’t distributed by then.
CBOE Volatility Chart
Volatility is low compared to historical values, however the election should make the needle jump.
Vix Volatility Chart. Courtesy of Yahoo Finance.
Stock Market Outlook 2021: Lean and Mean and Ready to Grow
Let’s put our rose-colored glasses on and take the view that whoever runs the US government, they’ll be able to spend their way out of trouble. Let’s let go of any stock market crash talk, and talk about what advantage US companies will have.
Those US companies are becoming lean and powerful, and those who survive the pandemic will be unusually competitive in 2021. The question for some investors is whether airlines, cruise lines, hotels and other sectors are good long term buying opportunities, or whether buying more Tesla, Google, Facebook and Amazon stock is the safer route. Or are new FAANGs about to rise?
Markets were raised by good news of Vaccine success and corporate earnings reports. While the threat and fallout from the deliberate actions of rioters and beach/drinking youth have been a nasty assault on the US economy and the confidence of Americans, the outlook is becoming a little more stable.
Trading Economics Stock Market Predictions to Q2 2021
Trading Economics Stock Market Forecast to 2021. Screenshot courtesy of Tradingeconomics.com
A Vaccine Will Stifle the Market Pessimists
The media has really been negative on the economy, exaggerating short term issues and pushing stock market crash scenarios. They’re pushing the “vaccines won’t work” theme too. However, good news from Pfizer, AstraZeneca, and Moderna suggests significant progress toward a successful, widely available Covid 19 Vaccine is not far off, perhaps in June of next year. See more on the vaccine stocks.
What is the Story for the Next 3 Months?
The 3 month outlook is dominated by whether President Trump can hang onto the Presidency and the pro-America agenda. And it’s all about Covid 19 management, slowing the 2nd wave, overpriced stocks and whether investors should bail out.
See below for the 3 month, 6 month, 1 year, 3 year and 5 year forecasts and predictions.
Yet, if you’re a long term investor, the summer volatility won’t matter much. Many big companies will survive the Covid 19 infection period as we head to a vaccine distribution. The real issue for investors is which companies will endure the change and come out winners in 2021.
Will Retail Investors be the Story in the Next 3 Months?
The growth of self-directed trading is impressive as investors feel they can find the best stocks on their own. With the level of insight and opinion and stats available online, these self-directed investors are still guided by the same investment pros. It could be Wall Street feels threatened by a change in the investment landscape, with new investment tools, software and advisors becoming more in vogue.
There are plenty of ups and downs recently though to keep them cautious. And the odds of a stock market crash are low right now.
If self-directed trading is working for you, please let me know in the comments at bottom.
Stock Indexes Head Upward Despite it All
Nevertheless, the Dow Jones forecast, S&P forecast, NASDAQ forecast and Russell 2000 long term outlook are once again positive. The reason the majors have been doing so well, is due to the struggles of small business.
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See more on the best stocks to buy including Vaccine stocks, 5G stocks, and perhaps small caps on the Russell index. Still wondering about the Amazon stock price, Google stock price, and Facebook stock price forecast? Brush up on the Apple stock price lately. Anti monopoly winds are blowing stronger and might hit gale force closer to the election as neither political party supports monopolies.
Important news of recent is the intent of US lawmakers looking to invest tens of billions of dollars in microchip manufacturing in the US. China has been pouring money into that industry. The rationale for this is due to the pre-eminence of chips in tech innovation as AI, 5G and robotics require faster, newer chips.
That means it’s a national security imperative to have microchips made in the US (see Intel, AMD and Nvidia stocks).
November, December and January are usually dark months, and the political turmoil and rise of Joe Biden as the next President means more volatility for the next 6 months and for 2021. Without stimulus spending received until February, consumer confidence could crash.
President Biden can’t do much about the Covid 19 surge which is becoming a serious problem. Shutdowns will have have to be ordered.
CNBC’s Jim Cramer believed the stimulus wouldn’t work because of social distancing (aerosol transmission). As long as people have to stay 6 feet apart, they won’t be flying, commuting on transit, eating at packed restaurants, attending big league sports, and going to the hair salon.
Now with the new surge and shutdowns, it looks like his view was correct. Covid can harm consumer spending and business activity. With no one in factories, GDP is set to fall for the 1st quarter 2021.
Cramer adds concern by saying the stimulus payments ended up in the bank accounts of the big corporations who will end up furloughing employees at some point. We need a Corona Virus vaccine badly, so is support for the vaccine companies is perhaps a wiser choice?
In the meantime, the violent protests could get worse, as unemployment, boredom and homelessness are set to rocket. The specter of a housing crash keeps creeping in. Hopefully, reopening businesses will accelerate revenue. Those who have work at home arrangements could succeed. The work model is definitely going to change and work at home is a fantastic route out of this recession.
Check the Tesla stock forecast along with forecasts for Amazon, Apple, Google, Facebook, and Netflix. See the post on best stock picks, best 5G stocks, and whether oil stocks are the best bargains of 2020.
Investing in Vaccine Stocks
Should you buy Corona Virus vaccine stocks? There’s 100 horses in the race for the vaccine. Are Pfizer and Johnson and Johnson (still has asbestos powder lawsuits pending) with ones with the least downside, given they have a regular range of consumer products to fall back on? They may come up with a vaccine too. Some of them pay no dividends, and if they did produce a vaccine, they might become a takeover target.
Some economists and experts forecasted a W shaped recovery. Is the second dip looming, or are we free and clear from here on in?
As lawsuits and trade embargos begin against China in the last half of 2020, we’ll see more market instability. A cold war is looming and that will bode well for the US economy.
Barchart’s Top Gainers
I’m sure you want to get to the top gaining stocks to see which are positioned to rocket higher.
Screenshot courtesy of Barchart.com
The reopening of businesses across the US added to a potential additional trillion dollar aid package means the economy could be ready to bolt forward. President Trump and the Fed seem to be getting behind the resurgence.
If we get past the dour 3 month and 6 month outlook, 1 year struggles, then the 5 year and 10 year projections for the US stock markets look promising. If Trump is returned to office, then 2021 will be the beginning of strong stock market bull run. The oil price forecast could make the start up period even better.
Corona Virus Stocks, Trending Stocks, or the Best Long Term Value?
If longer term projections and outlook are your guide, it’s just a matter of finding the best stocks to buy. Check out the top trending stocks of late and recheck gold stocks too. The race for a Covid 19 vaccine is providing a lucrative payday for lucky investors: see the top vaccine stocks. There’s big talk of oil stocks, but there is no demand for oil so production cuts won’t work. Also, review the Dow Jones forecast for it’s 3 to 6 month projections.
Other economists and stock market forecasters (Jim Cramer too) are suggesting a U shaped recovery is ahead of us, or that we’re already into it. Others believe this is a W shaped recovery with the next dip just ahead. A brief mini recession would fulfill the prophecy.
Which are the Best Stocks to Buy Now?
Looking for the best stocks to buy? Check out companies ready for the recovery and be wary of potential bankruptcies. See the forecast for the Dow Jones and the NASDAQ forecast.
One stock market analyst said this could be W recovery instead of a V or U shaped recovery. That means we could be in for another mini stock market crash, or let down. The fact China has recovered and is opening up for business again, means the US will likely follow a similar path.
What Caused the Last Stock Market Drop in April?
Here’s the key factors that took the market down in March and April.
- Corona Virus work stoppage – no income, cities emptied,
- a WHO pandemic declaration
- growth in US virus cases and deaths
- US travel bans for Americans and advice to stay at home
- oil price wars
- bond market weakness
- global economic setbacks
- government corrective actions not enough to solve the issues
Which are the Best Bargain Stocks to Buy?
Smart stock market investors are researching all the major exchanges for the best bargain stocks to buy. It might mean watching stocks daily to see which low priced stocks have the best upside potential. NASDAQ and the tech stocks seem to in demand, as the virus runs its course.
The run on Price of Gold recently may show the oil countries are selling gold to say afloat. The price of oil has sunk below $20 a barrel again today. It will be a boon for most American consumers, and others around the world as vehicle use and travel restart. Price of gasoline from California to New York has dropped significantly.
While all of this extreme market volatility is subsiding, investors worldwide are still nervous. Investment advisors and experts will have their ultimate tests in the coming weeks and months. Volatility and political strife seems to beget more of it.
The Stock Market Forecast
The DOW, NASDAQ and S&P had just hit previous highs, but this Corona Virus is a very wet blanket. So what was a rosy situation as we started 2020, is quickly souring.
However, the pandemic hasn’t hit the US. The US economy is still solid and improving, but is it exempt from the virus fallout? Some suggest the US will actually benefit from China’s new disease as manufacturers decide that production should move back to America.
Here are the key factors affecting the ever-improving outlook for the US stock market:
- US job numbers — jobs will come back by 2021, but lower than before
- The April PMI® fell to 41.5%, down 7.6% from the March reading of 49.1%
- fears about Corona Virus in North America beginning to decline (case number falling)
- President Trump weathering the Democrat media storm
- interest rates will stay low and perhaps go negative
- More talk about US import tariffs and US self-reliance
- weak earnings but not as bad as expected
- US companies such as Tesla making a lot of noise
- oil (forecast to sink below $40) and no demand growth for 2020
- US dollar looking stronger
Market Forecast for Next 6 to 9 Months
Economic recessions, normally end with a rocketing surge, usually because interest rates drop. This graph shows the current recovery from 2008 is one of the slowest on record. That might mean there’s much more left in the tank to keep this bull stock market going.
Chart courtesy of Economichelp.org
And investors in big corporate stocks seem to be fairly confident of that. They’re jumping on everything from Google to Tesla to Gilead stocks as we progress away from the pandemic.
Once in a lifetime Opportunity for big short term and long term equity gains. See the Best Stocks to Buy
Check the extensive stock price list and stats below for best picks. Also check out the AI stock picks, and AI stock trading software and see the market pages for real time price quotes.
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For a year that was predicted to be a total waste due to rising interest rates, trade wars, tariffs, political embargos, and a global slowdown, 2019 didn’t turn out all that badly. Hopefully this optimism will brighten the housing market forecast for 2021 after languishing in pessimism.
When Will US Consumers Return to Save the Markets?
It will take more than a 3 month shock to upset consumers. Banks too are very strong coming out of this recession. Bailouts help. And President Trump has made no mention of taking action on the US monopolies, Google, Facebook, and Amazon which would cause a ruffle for a while. We’d have to think the FAANGs will do well in 2020 until monopoly charges are finally laid.
Questions About the Stock Markets
Your questions about stock prediction and the Stock Markets are likely regarding which are the best stocks to buy, which index has better performing stocks, and whether you should invest in the big tech companies? The markets are peaking so what will drive stock prices higher? Should you buy Tesla Stock, or Apple Stock and play follow the leader?
What is the Stock Market Outlook for the Next 5 Years?
The long term stock market outlook to 2024 looks more promising each month because many of the market detractors are losing credibility. Take a look at long forecasts predictions for the S&P
Screenshot courtesy of longforecast.com
Will Stock Prices Rise in 2021?
That depends a lot on the outcome of the election. Rising taxes, capital gains taxes, mounting debt, growing trade deficits, return of China imports, and the flight of investment capital could all point to a stock market crash.
If the status quo is maintained, the capital will stay and we only have to wait for the Covid 19 vaccine.
Yes, with US wages growing, unemployment low, and interest rates remaining low, you have strong evidence that Google stock price, Facebook stock price, Apple Stock Price, and Amazon stock price growth will continue in 2020. Tesla stock price is on fire.
It’s still wise to take a look at smaller, up and coming tech stocks on the Russell index in anticipation of a hot economy in 10 months from now.
5 Year Long Term Forecast Optimistic
The 5 year and long term outlook to 2024 look really good too because the American consumer is well employed. The latest jobs outlook report is excellent. The 2020 to 2024 5 year forecast period is not priced into the market, but instead is focused on current earnings/sales.
Find the best stock picks that are making the biggest improvements below and more about the 2020 stock market forecast. Apple has hit new highs while Amazon and Netflix suffer. Find out what Jim Cramer of Mad Money thinks of the stock markets and the best industries.
Looking for the latest Apple stock price, Amazon stock price, Google stock price, Facebook stock price or Tesla stock price? Learn more about what underpins the potential of these Faang stocks.
Volatility from the Trade Deal: Splitting up a China agreement into phases likely won’t be successful. However, there is hope that something positive will evolve from negotiations with China.
Every time Trump hits China with penalties, the US stock markets jump, tariff revenues skyrocket and US business revenues rise.
Continue to Stock Market Forecast Part 2
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