Presented by Nicholas Wealth Management
November 22nd, 2021
Weekly Market Update
In this week’s recap: Markets react to growing COVID-19 infections and potential successor to Powell.
The Week on Wall Street
Stocks were mixed last week in choppy trading as investors battled the crosscurrents of good economic data and a troubling rise in COVID-19 infections globally.
The Dow Jones Industrial Average slid 1.38%, while the Standard & Poor’s 500 added 0.32%. The Nasdaq Composite index gained 1.24% for the week. The MSCI EAFE index, which tracks developed overseas stock markets, dropped 0.59%.1,2,3
A healthy retail sales report, falling jobless claims, positive earnings surprises, and strong manufacturing data lent support to stock prices, but investor sentiment was dampened by several concerns.
One of the greater concerns is a resurgence of COVID-19 infections this winter and the impact inflation may have on consumer confidence and corporate profit margins. The uncertainty surrounding the renomination of Fed Chair Powell exacerbated this unease; a decision from President Biden may come soon. Technology and other high-growth companies led the market, while some of the reopening stocks, such as travel and energy, lagged.
Retail Sales Jump
October retail sales increased 1.7%, indicating that consumers may be more confident than recent surveys have suggested. Sales of electronics, appliances, and autos were particularly strong last month.4
The market cheered the report, interpreting the results as a sign that inflation has not discouraged Americans from buying the products and services they want or need. This retail sales number, however, may be overstated for two reasons. First, higher prices increase the level of sales even if consumer demand is flat. Second, spending may have been pulled forward by consumer worries over higher future prices and concerns that goods may not be available during the holiday shopping season.
Tip of the Week
Avoid visiting ATMs alone at night, and never count your money at once. If an outside ATM seems lonely, try a well-lit ATM in a 24-hour grocery or drug store instead.
Apple Aims to Deliver a Fully Autonomous Vehicle by 2025We now know how Apple plans to spend some of its $100+ billion in cash on hand. The technology company aims to deliver a fully autonomous vehicle as soon as 2025. David Nicholas joined Charles Payne on Fox Business to discuss why this could spell a disaster for other EV companies.
Tripadvisor Going into 2022Travel is back and it's not going away. Now is the time to prepare your portfolio for a post-Covid world. David Nicholas joined Charles Payne to share why he believes there could be a significant upside for a company like Tripadvisor going into 2022.
Is Rivian a Meme Stock?Shares of Rivian have plunged as much as 15%. David Nicholas joined Fox Business with Stuart Varney to discuss if Rivian is a meme stock.
Apple's Fully Autonomous Electric Vehicle Could be the Greatest Competition to TeslaRivian's target market is recreational truck users. Lucid Motors' target market is luxury car buyers. David Nicholas joined Varney & Co on Fox Business to discuss why Apple's fully autonomous electric vehicle could be the greatest competition to Tesla.
Be sure to subscribe to our YouTube page for all of David’s media commentaries CLICK HERE!
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1. The Wall Street Journal, November 19, 2021
2. The Wall Street Journal, November 19, 2021
3. The Wall Street Journal, November 19, 2021
4. CNBC, November 16, 2021
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