Weekly Market Recap

Published Nov. 7, 2021
Bullish Market

WEEKLY MARKET SUMMARY

Dow Jones S&P 500 Nasdaq
36,328 (+1.40%)
4,698 (+2.00%)
15,972 (+3.10%)

The Bullish view of the market could be tested this week.

The bullish view of the stock markets could be tested this week as historically the markets have fared positively during November and December. What brings in more attention is the Federal Reserve’s two-day November meeting that is scheduled for Tuesday.

1. Central bankers are expected to announce the beginning of a narrowing of Covid-era bond purchases.

2. The week ahead also features a slew of corporate earnings, including results from Covid vaccine makers Pfizer and Moderna.

3. Along the way, the House was expected to vote, as early as Tuesday, on the Senate-passed infrastructure bill and the Democrats’ go-it-alone social and climate spending package.

4. Friday brings the government’s October employment report.

Elon Musk says Tesla has not signed a contract with Hertz yet

Tesla hit a $1 trillion market cap for the first time on Oct 25, after the announcement and advertisement released by car rental company Hertz to order a fleet of 100,000 Teslas by the end of 2022. However, Elon Musk in his tweet on Monday exclaimed “no contract has been signed yet” which contradicts the statement by Hertz.”

On another note, Tesla is recalling approximately 12,000 U.S. vehicles sold since 2017 owing to an error that may cause a false forward-collision warning or unexpected activation of the automatic emergency braking system. Tesla shares dropped more than 4% in the premarket.

Dow surpasses 36000 Milestone

The stock market’s bull rally continued Tuesday, with stock indexes reaching new highs and the Dow Jones Industrial Average closing above 36000 for the first time. The Dow added 138.79 points, or 0.4%, to 36052.63. It was the index’s sixth 1,000 point milestone of the year, the most in a single year. In January, the Dow closed above 31000 for the first time.

While inflation concerns have triggered investor sentiment, strong earnings for the third quarter have had the opposite effect and helped lift indexes to their records. Strong earnings were particularly important to justify a jump in company valuations.

DeFi — has caught the attention of the regulators

After a crackdown on Binance and other cryptocurrency firms, regulators are now turning attention to the world of decentralized finance. Decentralized finance, or “DeFi,” lets users take part in traditional financial activities like lending but with no middlemen involved. Regulators are concerned about DeFi services marketing themselves as decentralized when that may not be the case.

Long-term unemployment falls by 357,000 people but is still elevated

Long-term unemployment declined by 357,000 people last month, the Bureau of Labor Statistics said in the October jobs report issued Friday. Nearly 32% of all jobless Americans are long-term unemployed. That’s a big decline from the March 2021 peak, but still higher than most other points since World War II. Long-term joblessness is poised to fall further due to an improving labor market and public-health developments, economists said.

Google Invests in CME, To Put Trades on Cloud

Alphabet Inc.’s Google has invested $1 billion in futures-exchange operator CME Group Inc. and struck a deal to move the company’s core trading systems to the cloud.

Under the deal, the technology company’s Google Cloud unit would eventually power markets that handle trillions of dollars in trades each day.

The companies said Thursday that their 10-year partnership would allow CME to bring on new users faster, streamline operations and develop new tools with Google technology, such as artificial-intelligence software for monitoring market risks. CME will begin moving its technology infrastructure to Google Cloud next year, the companies said.

Google Cloud is the fourth-largest cloud provider, taking 6.1% of global cloud-infrastructure revenue last year, according to research firm Gartner Inc. The biggest player is Amazon, whose market share last year was more than 40%, followed by Microsoft and Alibaba Group Holding Ltd., Gartner data show.

Zillow’s Houses Attract Investors

Big investment firms are looking at buying some of the thousands of homes that Zillow Group Inc. is preparing to unload as it dismantles its home-flipping business.

Unlike Zillow, many of the firms aren’t interested in making a buck on a quick flip. Instead, they want to capitalize on the booming business of acquiring homes and renting them out to families.

Three of the largest owners of single-family homes for rent— Pretium Partners, American Homes 4 Rent, and Invitation Homes Inc.—are considering bidding or are in discussions with Zillow about buying some of its home inventory, according to people familiar with the matter. Their interest shows how valuable Zillow’s home inventory remains.

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