Weekly Newsletter- Week of 6.27.2021
Infrastructure Bill on Home Stretch
The S&P 500 recorded another strong week as it once again pushed to new highs after a 2.50% rise week over week. This gain marks the largest weekly gains since February- both the DOW and NASDAQ followed suit. Per usual, news coming out of Main Street seemed to be a primary factor behind the gain. Both parties in Washington have now come to terms on the highly publicized Infrastructure Bill. The new bill will cost roughly $1.2 trillion to fund, much lower than original predictions and now no longer include additional funding requests for things like education, child-care, and energy requirements. Although the bill is not officially signed, it seems to be likely that an agreement will be met shortly.
Is Nike A Growth Stock Again?
Longtime footwear and athletic apparel juggernaut Nike exploded this week, jumping over 20% in a five day period. With an increased focus on direct-to consumer sales, Nike sales exploded 73% for the quarter. To note, it's believed that many orders that were originally disrupted due to supply chain issues may have been fulfilled this quarter- causing an over-inflated report. We’ve talked extensively on our social media about the Retail and Apparel sector, as the entire sector jumped nearly 15% this week.
FAA Approval Helps Virgin Galactic Soar
This week, the FAA approved Virgin to begin flying it's passengers into space. After completing a previous round of test flights last quarter, the stock has been on fire. Shares jumped over 55% this week alone! An absolutely massive week for its investors. We know Jeff Bezos has Blue Origin and Elon Musk has SpaceX both waiting in the wings. With the first mover’s advantage belonging to Virgin, it appears the space race is just getting ready to take off. As one of the most heavily shorted stocks on the market, short-sellers have lost a combined $3 Billion for betting against the stock.
Crypto Continues to Crumble
Another rough week for all of crypto as key strength levels continue to come under pressure. This week Bitcoin nearly dropped below $30,000, a level that has not been broken since late 2020. Bitcoin is down 50% from April highs, while Ethereum is trading 60% below its highs.