It’s no secret that stocks have been melting up since early November. The grind higher seems to be fading in recent days, though, as investors continue to search for confirmation and direction. Small caps continue to be the safe play for stock market perma-bulls, and Tuesday’s crop report has many heads turning towards the grain markets. Here’s a quick recap of Tuesday’s action and a few of our favorite stories of the day.
More Mixed Price Action
Overnight Globex Session
Stocks in Asia closed higher, and European and U.S. markets showed modest gains ahead of Tuesday’s 8:30 AM CT opening bell. Weakness in the dollar, a six-day selloff in the bond market, and a record high in daily COVID19 vaccinations all helped stabilized Big Tech stocks after Monday’s selloff. Market optimism is still running reasonably high as investors expect increased government spending to keep stocks in positive territory for the year.
Thanks to increased global demand and continued supply cuts, Crude Oil continued its search for a new 52-week high after Monday’s minor setback.
Stocks hit a bump in the road early on during regular trading hours, giving back their overnight gains. Eventually, they made their way back towards settlement to close the day relatively flat.
The Russell continues to outperform the Dow, S&P, and Nasdaq. With their close ties to the U.S. economy, small-cap stocks will continue to grow as the economy recovers. Meaning, the more fiscal stimulus and economic relief the fed and Congress dole out, the better.
Today’s Top Headlines
Grains Limit Up!
Corn, Wheat, and Soybean futures rocketed to 6-year highs Tuesdays after reports indicated that grain harvests would come in under production estimates. The unexpected drop in production sent grain prices soaring, with Corn and Soybeans closing out the trading session locked limit-bid.
More Chaos In Washington
Investors are searching for direction as troops head into our nation’s capital. A vote from the U.S. House of Representatives on President Trump’s impeachment will occur Wednesday if the move to invoke the 25th amendment doesn’t pass Tuesday evening.
Uganda Bans Social Media
The president of Uganda ordered internet service providers to block social media and messaging apps on Tuesday. President Yoweri Museveni cited censorship claims after government officials were locked out of their accounts days before the country’s elections. Twitter and Facebook have both spoken out against the bans. It’s reasonably possible that this is another matter raising uncertainty and has investors waiting to see how it’s resolved.
Check back tomorrow for another update after the close!