An employee of a bank walks by screens showing the Korea Composite Stock Price Index (KOSPI), left, and the foreign exchange rate between U.S. dollar and South Korean won at the foreign exchange dealing room in Seoul, South Korea, Friday, May 14, 2021. Asian shares rose Friday after Wall Street put the brakes on a three-day losing streak with a broad stock market rally powered by Big Tech companies and banks. (AP Photo/Lee Jin-man)
Stocks were solidly higher in early trading on Friday, but the market is still on track to end the week in the red after three days of steep drops earlier in the week. Investors continue to focus on the possibility of inflation as the U.S. economy recovers from the coronavirus pandemic.
The S&P 500 index was up 1.1% as of 10:15 a.m. Eastern. The Dow Jones Industrial Average was up 0.8% and the Nasdaq Composite, where the losses this week have been steeper, was up 1.5%. Even with the gains, the S&P 500 is on pace to end the week down 1.8% and the Nasdaq down 3.1%.
Disney fell 4% after reporting lower revenue and missing forecasts for growth in subscriber additions to its video streaming service. Disney had been adding subscribers at a breakneck pace the past year, helped by popular shows like “The Mandalorian” and the pandemic, which kept many Americans at home with little to do except watch TV.
Technology stocks led the gainers after sinking earlier in the week as investors fretted about signs of rising inflation. Apple, Microsoft, Facebook and Google's parent company all rose 1% or more.
Investors have been questioning whether rising inflation will be something temporary, as the Federal Reserve has said, or something more durable that the Fed will have to address. The central bank has kept interest rates low to aid the recovery, but concerns are growing that it will have to shift its position if inflation starts running too hot.
Data from Commerce Department on Friday showed Americans kept up their share of retail purchases in April, helped by the stimulus checks that have gone out in the last few weeks. However economists expected retail sales figures to be slightly higher for the month. Sales were up at restaurants and bars in the month, according to the data.
Bond yields have risen sharply this week but pulled back slightly on Friday. The yield on the 10-year Treasury fell to 1.63% from 1.66% a day earlier.
Featured Article: Technical Analysis of Stocks, How Can It Help 7 Electric Vehicle (EV) Stocks That Have Real Juice
I’ll start with a disclaimer. You won’t see Tesla (NASDAQ:TSLA) or Nio (NYSE:NIO) on this list. And that’s not because I’m being contrarian. I just view Tesla and Nio as the known quantities in the electric vehicle sector. The goal of this presentation is to help you identify stocks that may be flying under your radar.
Many EV stocks went public in 2020 via a special purpose acquisition company (SPAC). There is both good and bad to that story. The good is that investors have many options for investing in the EV sector. Many of the companies that have entered the market are attempting to carve out a specific niche.
The potentially bad news is that these stocks are very speculative in nature. Whereas companies like Tesla and Nio have a proven (albeit recent) track record, there are things like revenue and orders that investors can analyze. With many of these newly public companies, investors are being asked to buy the story more than the stock and that is always risky.
However, in this special presentation, we’ve identified seven companies that look like they have a story that is compelling enough that investors should be rewarded in 2021.
View the "7 Electric Vehicle (EV) Stocks That Have Real Juice"