Stock Market Report: Futures Edge Lower, Stocks Claw Back Losses, Volatility Expected
Here is a comprehensive stock market news report for traders and investors:
Daily Stock Market Report
Top Stock Market News
Stock Futures Edge Lower Ahead of Weekly Jobless Claims Data
U.S. stock futures dipped slightly on Thursday, suggesting Wall Street may take a breather after a three-day rally. Investors are awaiting the latest data on weekly jobless claims for clues on the labor market recovery. The Labor Department's report is due out at 8:30 a.m. ET. Economists estimate 335,000 Americans filed for unemployment benefits last week, down from 340,000 the prior week.
Wall Street Claws Back Some Losses After Volatile Week
Major U.S. stock indexes closed lower on Friday but clawed back some of their steep losses from a volatile week on Wall Street. The Dow Jones Industrial Average fell 0.5%, while the S&P 500 dropped 0.8% and the tech-heavy Nasdaq Composite lost 0.9%. For the week, the Dow lost 1.7%, the S&P 500 shed 2.2%, and the Nasdaq fell 3.3% in their worst weekly losses since June.
Dow Falls Over 600 Points as September Turns Ugly
The Dow Jones Industrial Average plunged over 600 points on Tuesday, as September kicked off with a sharp sell-off on Wall Street. The S&P 500 sank 1.1%, while the Nasdaq Composite fell 1.3%. Stocks have a tendency to underperform in September, with the S&P 500 averaging a 0.4% decline during the month, according to CFRA data going back to 1945.
Stock Market Outlook: Buy the September Sell-Off Ahead of Next Rally
Despite the recent market volatility, some strategists remain bullish on U.S. stocks for the remainder of 2021. They argue that any September weakness should be viewed as a buying opportunity ahead of a potential year-end rally. Historically, stocks have tended to perform well during the final three months of the year, a period known as the "Santa Claus rally."
Top Stocks to Watch
Growth Stocks: Norwegian Cruise Line (NCLH), Crocs (CROX), Uber (UBER)
Norwegian Cruise Line, a leading cruise operator, is among the top growth stocks to consider today. The company is benefiting from a rebound in travel demand as COVID-19 restrictions ease. Footwear maker Crocs and ride-hailing giant Uber are also attractive growth plays, with strong revenue and earnings growth projections.
Value Stocks: AXIS Capital (AXS), Community Trust Bancorp (CTBI), Foot Locker (FL)
For value investors, AXIS Capital, a property and casualty insurer, offers an attractive valuation with a forward P/E ratio of just 9.8. Community Trust Bancorp, a regional bank holding company, and Foot Locker, a leading athletic footwear and apparel retailer, are also trading at compelling valuations relative to their peers.
Other Stocks to Watch: Zumiez (ZUMZ), GameStop (GME), AMC Entertainment (AMC)
Specialty retailer Zumiez is scheduled to report its fiscal second-quarter earnings today, with analysts expecting strong results driven by robust demand for athletic apparel and footwear. Meme stocks GameStop and AMC Entertainment, which have seen wild swings in recent months due to retail trading frenzy, may also be in focus.
Stock Market Expected Movement
With concerns over the Delta variant's impact on the economic recovery and uncertainty surrounding the Federal Reserve's tapering plans, volatility is expected to remain elevated in September. However, any significant market pullback could present buying opportunities for long-term investors, particularly in sectors poised to benefit from the ongoing economic reopening, such as travel, leisure, and consumer discretionary.
Overall, the stock market is likely to continue its upward trajectory in the coming months, supported by solid corporate earnings, accommodative monetary policy, and progress in combating the pandemic. Investors should remain disciplined, diversified, and focused on their long-term investment goals while navigating potential near-term market fluctuations.
