Happy Friday, investors. Online clothing reseller Poshmark made its stock market debut yesterday, finishing Thursday with an impressive 141% gain. Today's Featured Stock Story Bank of America's 8 Best Stocks to Buy in Q1The S&P 500 closed out 2020 at all-time highs on optimism surrounding additional government stimulus measures and a potential global economic rebound in 2021.
Investors are mostly looking past horrible 2020 earnings numbers and focusing on the path forward for the economy, but there is still significant uncertainty surrounding when, if ever, certain businesses will fully recover to pre-crisis levels.
Bank of America recently released its quarterly list of the top eight stocks to buy in the first quarter. These eight stocks are high-conviction investment ideas that have market-moving catalysts coming sometime in the next three months:
1. Citigroup (ticker: C). Analyst Erika Najarian says Citigroup is a particularly attractive value stock within an already undervalued financial sector that is poised to outperform in 2021. Bank of America is projecting both a macroeconomic rebound and a rebound in 10-year Treasury yields to 1.5% in the second half of 2021, both of which are bullish for Citigroup.
2. Foot Locker (FL). Nike is making strategic exits from stores such as J.C. Penney, Belk and Dillard's, which should create gross margin tailwinds for Foot Locker as a key Nike strategic partner. In fact, analyst Robert Ohmes says 70% of Foot Locker stores are located within two miles of a competing store that is either closing or Nike is exiting.
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10 of the Best Stocks to Buy for 2021 Dow31,991 (-0.22%)
Nasdaq13,112 (-0.12%)
S&P 5003,795.54 (-0.38%)
* Market data as of yesterday's close
Here's what you missed in the markets on Thursday.
Don't get hung up on yield. When income investors are looking for stocks, it's important to not look at dividend yield alone. After all, a high yield could result from a company that is stuck in a tailspin of falling share prices. You should consider dividend growth over just raw yield. This proves a company is thriving and making bigger and bigger payouts. Here are seven stocks to buy with growing payouts. The new Warren Buffett? Billionaire investor Chamath Palihapitiya might be the new Warren Buffett, according to Josh Brown, CEO of Ritholtz Wealth Management. "I think he's the new Buffett," Brown said this week. "He's not there in dollar terms yet, but he seems to have figured out a lot of things before other people and he's executing very well."
Palihapitiya, a billionaire venture capitalist, is perhaps most well known for taking companies public through special purpose acquisition companies, or SPACs. Financial services platform SoFi, set to go public in 2021, is a prime example of his work. Unemployment rises. The three major U.S. stock market indices posted slight losses Thursday, fading late in the day.
Investors anticipated the unveiling of President-elect Joe Biden's coronavirus relief package. The speech, which is expected to detail trillions of dollars in financial relief, is anticipated late Thursday. This news comes as COVID-19 infections continue to climb, and a worrying new virus strain circulates within the U.S.
Initial unemployment claims for the week ended Jan. 9 reached 965,000, a greater increase than analysts had expected. This marks the highest rate since August and signals that virus-related business restrictions continue to plague the labor market.
The Dow Jones Industrial Average fell 69 points, or about 0.2%, to finish at 30,991.
Poshmark off to a hot start. On its first day of trading, online clothing reseller Poshmark (POSH) saw shares jump more than 140%. Poshmark had priced its initial public offering at $42 per share for an initial valuation of $3 billion. It ended Thursday at $101.50.
Space stocks soar on ETF news. Shares of Virgin Galactic (SPCE) and Maxar Technologies (MAXR) both rocketed about 20% Thursday. Investors were fueled by ARK Investment Management's filing with the Securities and Exchange Commission to launch a space exploration exchange-traded fund, or ETF, under the ticker ARKX. According to filings, the ETF will focus on companies that are "leading, enabling, or benefiting from technologically enabled products and/or services that occur beyond the surface of the earth."
Tesla recall dings stock price. Shares of Tesla (TSLA) slipped more than 1% Thursday on news that regulators asked the electric car maker to recall about 158,000 vehicles for safety issues related to their touch screens. The National Highway Traffic Safety Administration asked Tesla to recall certain Model S sedans and Model X SUVs.
The tech failure results in the loss of the rearview camera and other safety functions. Today's earnings reports. Companies expected to report today include JPMorgan Chase & Co. (JPM), Wells Fargo & Co. (WFC), Citigroup (C) and PNC Financial Services (PNC). Explore Stock and Fund Rankings Top Investment Banks and Brokerage StocksData as of October 27, 2026 ✉ If you're enjoying this newsletter, forward it to a friend! They can click here for their free daily dose of investing tips. You can also check out more U.S. News newsletters here.
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Programming note: Invested will be observing Martin Luther King Jr. Day. We'll be back in your inbox on Tuesday, Jan. 19. Enjoy the long weekend, everyone! |
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