Whether you’re trading penny stocks or stocks over $100, the goal is the same. You want to find opportunities as early as possible and capitalize. In the stock market today, there are plenty of factors affecting the way investors approach both long-term and short-term opportunities. One way they hunt for things like the best penny stocks to buy or the best stocks to invest in for 2023 is by looking at news headlines. Stock market news can act as a major catalyst for specific companies or entire sectors, depending on the type of information reported.
How To Use Stock Market News To Your Advantage
In a financial landscape as dynamic as the stock market, every day brings forth new challenges and opportunities for investors. The market today is navigating through a tapestry of catalysts, each playing a significant role in shaping the investment narrative. Here’s an exploration of the broad market catalysts stirring the stock market today:
The stock market is currently in the throes of earnings season, where companies unveil their quarterly financial performances. Earnings reports are pivotal as they not only reflect a company’s financial health but also set the tone for its stock performance. Investors and analysts keenly eye these reports to make informed decisions, thereby making earnings season a highly volatile period in the market.
Economic data releases are indispensable catalysts. Today, investors are awaiting fresh economic data which might shed light on the state of the economy. Key indicators such as employment figures, inflation rates, and consumer sentiment indices play a crucial role in influencing market trends.
Pay Attention To Stock Market Sentiment
Market sentiment, often a reflection of broader economic and political landscapes, significantly impacts stock market movements. Recent concerns over a potential market downturn have been making headlines, indicating a cautious or bearish sentiment pervading the market.
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Markets are also swayed by company-specific news. For instance, shares of large-cap company Intuitive Surgical plummeted following a miss in Q3 revenue. That shows how individual company news can send ripples across the market.
Don’t Count Out Boring Bonds As An Indicator
Bond yields continue to be a focal point for investors. Rising bond yields often signal a shift towards a less risk-averse stance among investors. Recently, a climb in bond yields led to a dip in the market, showcasing the intertwined relationship between bond markets and stock markets.
Sectors within the stock market don’t move in a vacuum. Performance in one sector can significantly impact others. For instance, a surge in tech stocks might draw capital away from other sectors, illustrating the interconnectedness of market sectors.
Think Global
Global events and geopolitical tensions invariably cast a long shadow on market dynamics. Be it trade tensions or geopolitical unrest, the ripple effects are felt across the stock market, underscoring the global interconnectedness of financial markets.
In essence, the stock market today is a mix of multiple catalysts, each with the potential to significantly impact market dynamics. Investors, thus, need to keep a pulse on a broad spectrum of factors to navigate the complex and ever-evolving market landscape. In this article, we look at a handful of penny stocks with big news this week.
- eFFECTOR Therapeutics, Inc. (NASDAQ: EFTR)
- Ascent Solar Technologies (NASDAQ: ASTI)
- Terran Orbital Corporation (NYSE: LLAP)
- LianBio (NASDAQ: LIAN)
eFFECTOR Therapeutics, Inc. (EFTR)
Biotech penny stocks have been some of the most volatile in the stock market this year. Much of this type of trend is due to the speculative nature of the biotech industry itself. eFFECTOR experienced a significant move higher during the summer and since settling down the attention has been on the company’s next move.
This week eFFECTOR announced a collaboration deal with Northwestern University Division of Hematology and Oncology. The groups will focus on an investigator-initiated Phase 1 dose escalation trial in tomivoserib for acute myeloid leukemia.
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Doug Warner, M.D., chief medical officer of eFFECTOR Therapeutics, added: “We are excited to collaborate with the Northwestern team to further explore tomivosertib in hematologic settings as eFFECTOR continues to evaluate tomivosertib’s potential for treatment of solid tumors in non-small cell lung cancer.”
Ascent Solar Technologies (ASTI)
Solar stocks haven’t been as bright as some might’ve hoped. However, this week, micro-cap solar company Ascent Solar has found itself in the spotlight after its latest milestone update.
This week the company announced that it received an “Encouraged” decision from the Department of Energy in relation to an initial concept paper it submitted.
The company will now push ahead with an application process to hopefully secure funding for its proposed agrivoltaic system. Ascent is targeting a system that will benefit farmers, allowing them access to solar power generation.
Terran Orbital Corporation (LLAP)
Like solar, space stocks haven’t been in the orbit of investors in light of recent economic uncertainty and risk-off sentiment. However, this week, Terran Orbital has seen some signs of life after its latest update.
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Terran announced a contract to build 36 satellite buses for Space Development Agency’s Tranche 2 Transport Layer Beta constellation. These will be delivered to Lockheed Martin, which will integrate and jointly operate the satellites with Space Development Agency.
LianBio (LIAN)
Another one of the biotech penny stocks to watch on this list is LianBio. The company specializes in bringing treatments to Asian markets. this week, it announced inking a deal with Bristol Myers Squibb, who holds LianBio’s exclusive rights to develop and commercialize mavacamten. The deal sees LianBio getting a one-time payment of $350 million.
Yizhe Wang, Ph.D., Chief Executive Officer of LianBio. “The LianBio team executed a successful clinical development and regulatory strategy in our territories and has built robust launch infrastructure in anticipation of mavacamten’s potential approval in China next year. As the global owner, BMS is ideally positioned to continue to build on the value we created for mavacamten in China and to optimize patient access to this important new medicine across these territories.”
