Good Friday has shut the market in the U.S. today after a week of gains across the board. Even the tech-heavy Nasdaq saw an increase after having taken a beating for weeks on rising rates and inflationary fears. But the S&P was the real index winner, rising above 4,000 for the first time in history.
So what happens Monday? Expect a manic one as the rally will likely continue. April will turn out to be one of the better months this year for the stock market in my view.
Jobs Report Is Key Here
The U.S. stock-index futures stayed open long enough Friday (closing at 9:15 am) for traders to get a look at the March jobs report which showed stronger-than-expected nonfarm payrolls. The Dow Jones Industrial Average YM00, +0.46% rose 153 points, or 0.5%, to 33,190, while S&P 500 futures ES00, +0.43% gained 17.35 points, or 0.4%, to 4,027.25. Nasdaq-100 futures NQM21, +0.21% edged up by 28.25 points, or 0.2%, to 13,344.25.
“We had another banging number today for the U.S. labor market. Clearly the economy is picking up significant steam and there is a lot of optimism,” said Naeem Aslam, chief market analyst at AvaTrade, in emailed comments to Marketwatch.
The unemployment rate fell from 6.2% to 6% as March proved to be a boon for the leisure and hospitality industries in particular, which saw massive hirings. Public and private education and construction were also aflame, the Labor Department report showed.
This means that, while tech is starting to creep a little back up, the reopeneing trade is still the trade favored by investors. Expect clean energy, the solar and EV sector in particular, to accelerate gains in the coming week. Big tech worth buying at these levels, however are stocks like Microsoft (Nasdaq: MSFT) and Amazon (Nasdaq: AMZN), both of which are starting to see some gains after the yield-focused anti-tech trade took these stocks down a few price points.
Plug Power: The Stock for April
In the las session, Plug Power (Nasdaq: PLUG) closed at $35.26, marking a -1.62% move from the previous day. This move lagged the S&P 500's daily gain of 1.18%. Meanwhile, the Dow gained 0.52%, and the Nasdaq, a tech-heavy index, added 1.76%. Plug has been on a serious pullback over the last few weeks, and is arguably overvalued at its current levels. However, this popular hydrogen fue cell stock is a gamble worth taking. The stock was trading as high as $73 per share at the end of January (yes, an obscene price) and is now nearly half that. While the stock can keep falling, excitement surrounding this company has only picked up steam and, at these levelsm the stock is a BUY. Enthusiasm for clean energy will come to represent the Biden Bull Market above any other space. Even if long-term Plug Power takes years to justify even its current valuation, the stock should see a return to $50 per share ($15 above its current price) by the end of 2021 or, more likely, by the end of summer.
And Then There Are Etheruem and Bitcoin.
The excitement has return to crypto, and has drowned out any concerns of a massive selloff. Bitcoin might be stuck around 60k for a while, but Ethereum should rise above $2200 (now at $2070) by this Monday or next and might even top $2500 by the end of April.
So, expect a manic Monday after this Good Friday weekend. But don't let the weekend Etheruem trade pass you by.