Investors are braced for a grim start to the week as global stocks and equity futures spew red ink. That’s as China property worries may have finally spooked markets, with giant Evergrande taking a major spill.
Concerns about China contagion are piling onto a laundry list of reasons to fret this market: “The persistence of the Delta variant, elevated inflation, supply chain blockages and raw material price increases are combining to form a toxic cocktail which is seeing optimism evaporate,” sums up Richard Hunter, head of markets at Interactive Investor.
Investors were promised anything but roses for September, so they should be well prepared for the 5% to 10% drop in the next few months that Wall Street analysts keep warning about.
Does that mean one should have a dip shopping list handy? Check out these growth names ideas from our call of the day, from Larry Tentarelli, editor and publisher of the Blue Chip Daily Trend Report.
“Each of these stocks is in an uptrend of higher highs and higher lows, over all key moving averages. While general market direction can have an impact on all stocks, these 4 high growth leaders are showing signs of outperformance,” Tentarelli writes.
The tech-related companies are all 20% or more below all-time highs yet managed weekly gains last week, bucking losses for the SPY SPY,
First up is vacation rentals group Airbnb ABNB,
He notes improving price momentum for AirBNB, which has been trading above the 20, 50 and 100-day moving averages. Airbnb shares are up 15% from their public debut in early December 2020.
The next three picks are in the cloud software space, starting with Palantir PLTR,
Unity Software U,
Last one is Snowflake SNOW,
Evergrande sours the mood and Yellen warns
Property shares tumbled in China, with Evergrande 3333,
China regulators met with Wall Street representatives last week to defend their tech sector crackdown, say sources. Meanwhile, young fans of China’s version of video app TikTok are facing screen time limits.
Treasury Secretary Janet Yellen urged Congress to raise or suspend the nation’s debt ceiling or risk “widespread economic catastrophe,” in a Wall Street Journal op-ed column. The Treasury could default on its bills by October if a split Senate can’t reach a deal to raise the debt limit.
Pfizer PFE,
Investors will be on the lookout for any tapering talk from a two-day Federal Open Market Committee that begins Tuesday. A bunch of other global central banks will meet too.
Netflix NFLX,
The markets
Stock futures YM00,
Cryptocurrencies are also having a tough time, led by losses for ether ETHUSD,
Random reads
A volcano on one of Spain’s Canary Islands erupted Sunday, sending lava spewing. Properties have been destroyed and thousands have had to flee.
Also in Spain, more than 25,000 students and other revelers held a megaparty at a Madrid university on Friday, with the last revelers leaving around 7 a.m. Saturday.
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