The market closed higher on Friday, after getting crushed the days before after hitting new highs. Economic data is still showing rising inflation , but the market shrugged it off again. Wall Street is clearly waiting for news on the rate hike, and until then I see the market finishing strong to the end of 2021.
The terrible Infrastructure Bill is set to be signed by Biden, increasing the US debt and printing more currency , which will continue to add to rising inflation. It doesn't seem that the government wants to stop spending, and with the rising 10 year yield, inflation, and world macro conditions, things seem to be set for a pullback in 2022.
Covid continues to ramp up in Europe, as cases hit peak pandemic numbers. However, deaths are way down and I don't see Europe closing again for Covid, as % deaths continue to dwindle. If Covid doesn't shut things down in winter, stocks like DASH, NFLX, and Peloton will continue to drop. Other covid stocks will continue to come off as well.
#TSLA continues to sell off, as Musk has another 5 billion to dump to keep his promise on Twitter. I think anything below 1,000, will cause dip buyers and funds to start buying, which will start to create and bottom and support for the stock. We should see a recovery coming into year end as the sell off starts to taper off.
Earnings are still coming out and this week we have the following:
November 15: Tyson Foods (NYSE:TSN)
November 18:Alibaba (NYSE:BABA)