Stock Market Today: Recovery Plays Lead the Way as Stocks Calmly Climb
Airlines, restaurants and cruise liners were among some of the session's biggest gainers in a smooth, fruitful Monday for stocks.
Wall Street kicked off the week with a surprisingly, refreshingly gentle Monday session with modest but steady movement across most of the market.
The tech-heavy Nasdaq Composite, which has spent much of the past few weeks lurching up and down on inflation fears, led the other major indices thanks to the likes of Apple (AAPL, +2.5%) and Facebook (FB, +2.0%).
But among the market's biggest leaders were a wide variety of "recovery" plays, including carriers such as United Airlines (UAL, +8.3%) and American Airlines (AAL, +7.7%), cruise lines including Carnival (CCL, +4.7%) and Norwegian Cruise Line Holdings (NCLH, +2.4%), and restaurant stocks such as McDonald's (MCD, +3.8%) and KFC/Taco Bell parent Yum! Brands (YUM, +3.0%).
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
"As vaccines become more widely available and the economy opens up, we should see a rapid increase in spending on services," says Raymond James Chief Economist Scott Brown. "One lesson from the 1918 pandemic is that people will be eager to make up for lost time (as we saw during the Roaring Twenties)."
The Nasdaq closed with a 1.1% gain to 13,459. The S&P 500 (+0.7% to 3,968), Dow Jones Industrial Average (+0.5% to 32,953) and Russell 2000 (+0.3% to 2,360) all finished with more modest improvements, but also all notched record closes.
Other action in the stock market today:
- U.S. crude oil futures slipped 0.2% to settle at $65.50 per barrel.
- Gold futures improved by 0.6% to $1,729.20 per ounce.
- Bitcoin prices soared to more than $61,000 over the weekend, but finished Monday 0.2% lower from Friday's levels to $56,657. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
Start Monitoring What Investors Are Throwing Away
If this is all starting to sound familiar, that's because you've been hearing it for a while.
Analysts and strategists have been regularly and frequently beating the drum of an economic reopening that will reanimate cyclical sectors – which, by the way, will benefit all the more from weak year-over-year earnings and revenue comparisons.
But in investing, as in chess, it pays to think a few steps ahead.
Investors are increasingly piling into the reflation/recovery trade, and it's clear that to do so, some of them are cashing out of tech and other growth stocks that had been sporting sometimes outrageous valuations. That's worth keeping an eye on.
You could start building a wish list from some of our top tech picks from the start of the year, or our list of long-term S&P 500 buys that would look far more attractive on a dip. You could also look for opportunities in long-term trends that the coronavirus helped accelerate.
Take video game stocks, for instance. Wall Street's experts still project rampant growth for this industry in the years to come, but these companies' shares went ballistic during 2020 as COVID accelerated the trend. Now that they're starting to cool off as investors chase the next thing, these video game stocks could start approaching much more reasonable levels – and offer opportunity to new buyers.
Disclaimer
Kyle Woodley was long NCLH as of this writing.
To continue reading this article
please register for free
This is different from signing in to your print subscription
Why am I seeing this? Find out more here
Kyle Woodley is the Editor-in-Chief of WealthUp, a site dedicated to improving the personal finances and financial literacy of people of all ages. He also writes the weekly The Weekend Tea newsletter, which covers both news and analysis about spending, saving, investing, the economy and more.
Kyle was previously the Senior Investing Editor for Kiplinger.com, and the Managing Editor for InvestorPlace.com before that. His work has appeared in several outlets, including Yahoo! Finance, MSN Money, Barchart, The Globe & Mail and the Nasdaq. He also has appeared as a guest on Fox Business Network and Money Radio, among other shows and podcasts, and he has been quoted in several outlets, including MarketWatch, Vice and Univision. He is a proud graduate of The Ohio State University, where he earned a BA in journalism.
You can check out his thoughts on the markets (and more) at @KyleWoodley.
-
How You Can Tackle Health Care Costs in Retirement
Doctor visits and medications are only part of the challenge of health care costs — there’s also long-term care planning. Here’s what you can do.
By Joel V. Russo, LUTCF Published
-
Considering Purchasing and Renting a Property in Italy?
Owning a property in Italy where you can stay when you visit and rent out when you’re not there requires very careful planning.
By Davide Migali Published
-
Stock Market Today: Stocks Soar on Apple Buyback News, Jobs Data
The main indexes rallied hard to end the week thanks to Apple's $110 billion stock repurchase plan and a big April payrolls miss.
By Karee Venema Published
-
Stock Market Today: Stocks Sizzle Ahead of Apple Earnings, Jobs Report
The Nasdaq outperformed in a strong day for stocks thanks to Qualcomm's post-earnings pop.
By Karee Venema Published
-
Stock Market Today: Stocks Pop Then Drop After Fed Meeting
Stocks went on a roller-coaster ride after Fed Chair Powell said interest rates were likely at a sufficiently restrictive level.
By Karee Venema Published
-
Stock Market Today: Stocks Sell Off Ahead of Fed Decision
Stocks sold off sharply Tuesday as anxiety set in ahead of Wednesday's policy statement from the Federal Reserve.
By Karee Venema Published
-
McDonald's Stock Struggles After Rare Earnings Miss
McDonald's stock is choppy Tuesday after a mixed first-quarter earnings report. Here's what you need to know.
By Joey Solitro Published
-
Stock Market Today: Markets Post Broad-Based Gains Thanks to Mega-Cap Tech
Stocks get help from a couple of laggard Magnificent 7 stocks.
By Dan Burrows Published
-
Stock Market Today: Markets Soar Amid Strong Earnings for Big Tech
Equities ended the week on an up note thanks to some of the market's biggest names.
By Dan Burrows Published
-
Stock Market Today: Markets Tumble Amid Slower Economic Growth and Rising Prices
Disappointing readings on GDP and inflation helped tank equities.
By Dan Burrows Published