Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

Bitcoin Pop, Pot Stock Drop, Bumble Debut: 3 Things to Watch

Published 11/02/2021, 20:31
Updated 11/02/2021, 20:36
© Reuters.
HAL
-
MRO
-
BK
-
BTC/USD
-
WEED
-
MJ
-
APHA
-
BTC/USD
-
TLRY
-
BMBL
-

By Liz Moyer

Investing.com -- Stocks were mixed on Thursday, and energy led declines on renewed demand concerns.

The cartel of oil producers known as OPEC said demand will increase about 5.8 million barrels a day, which is actually less than previous forecasts. That weighed on big energy stocks like Halliburton Company (NYSE:HAL)and Marathon Oil Corporation (NYSE:MRO)

The number of new jobless claims filed last week was higher than expected, but economists were quick to downplay the weaker headline number, noting that claims remained well below their January peak.

Sentiment on stocks were also supported by ongoing decline in U.S. virus cases and a pick up the pace of the vaccine rollouts that will likely lead to a stronger-than-expected reopening.

There isn’t much data scheduled for release, and earnings season is winding down. Here are three things that could affect markets tomorrow:

1. Crypto craze

Bitcoin (BitfinexUSD) jumped nearly 6% to $47,753, after BNY Mellon (NYSE:BK) said it started a new business to help clients hold, transfer and issue digital assets.

Investors have been piling into bitcoin and other digital currencies, rather than put their money in the traditional safe haven of gold. It might help that widely followed people like Elon Musk have taken to twitter to sing the praises of crypto (in Musk’s case, dogecoin). But Tesla’s investment in $1.5 billion worth of bitcoin is also pushing the price higher.

2. Pot trade up in smoke

A bid up in the cannabis sector this week petered out on Thursday. Widely reported to be a Reddit effort to boost shares of Tilray Inc (NASDAQ:TLRY), Aphria Inc (TSX:APHA), and Canopy Growth Corp (TSX:WEED), the trade lost its momentum and the stocks tumbled.

The ETFMG Alternative Harvest (NYSE:MJ)fund lost 24% on Thursday, though it is still up nearly 76% so far this year.

3. Bumble pop

As we predicted on Wednesday, Bumble Inc (NASDAQ:BMBL), the dating app company, soared on its debut, trading well above its IPO price of $43, following the pattern of other recent new listings. Bumble is getting a boost from users who are stuck at home but still eager to make new social connections, its CEO said on CNBC on Thursday.

After jumping more than 80% when it began trading around midday, Bumble gave up some of that gain. It was up 70% from its IPO price just after 3:00 PM ET.

 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.