The Stock Market Today & What You Missed On Tuesday, October 4, 2022
It wasn’t graceful, but things moved higher in the stock market today. Whether you traded penny stocks or higher-priced stocks, there was no shortage of volatility. The initial move was to the upside as investors shrugged off aggressive rate hikes to come. Speculation began buzzing thanks to moves made by none other than Australia’s central bank.
On Tuesday, the Reserve Bank of Australia (RBA) raised its interest rates by 25 basis points. Since this was smaller-than-expected, onlookers grew bullish. Then The bank explained that it had already raised rates substantially, though further tightening would still be needed. Meanwhile, the United Nations warned that the world is on the verge of a recession that could hurt developing nations. According to the UN, that would be due to interest rate hikes in developed countries like the U.S.
“Interest rate hikes by advanced economies are hitting the most vulnerable hardest…Some 90 developing countries have seen their currencies weaken against the dollar this year.”
US Economic Data Eases Concerns (for now)
Against this backdrop, investors peered into US economic data during the early Tuesday premarket session. Job openings dropped, a welcome sign for Fed officials attempting to cool the labor market and fight inflation.
The JOLTs report showed that job openings dipped to 10.1 million, a drop of 1.1 million. This isn’t the strong catalyst to decide that a soft landing is coming. But it is something that has become a sticking point for some.
The Fed had its hangups about a recession actually being in play because of such a strong labor market. But now that there’s some cooling, some expect that the central bank might decide to slow monetary tightening and more extensive rate hikes into 2023.
More employment and trade data are set to come out this week. Wednesday will see ADP Nonfarm employment change and August trade balance data reported before the opening bell. September Services PMI, nonmanufacturing employment PMI, and S&P Services Composite PMI will also come out as the first hour of trading begins on Wednesday.
Energy, Earnings, Fed Speak
Energy stocks may also be in focus as the OPEC Meeting begins at 6 AM ET. This will be the first time an in-person meeting has been an option since March of 2020. Members of the group will weigh cutting oil output.
The second half of the week will see Fed speakers chime in, which will surely gain investors’ attention. Thursday, Fed Governor Cook speaks during the mid-afternoon session. Meanwhile, Fed Waller and FOMC Mester give comments after the closing bell starting at 5 PM ET. The FOMC’s Williams will also be speaking Friday at 10 AM to round out the week of Fed speak.
Meanwhile, we should start seeing additional earnings reports as the season begins picking up steam. It won’t be about “record revenue” or “tighter margins” per se. Investors are looking for guidance and what they should expect from companies in their initiatives to combat inflation.
4 Penny Stocks To Buy For Under $5
Most of these events have brought about volatility in the stock market. That has been a great benefit to those trading penny stocks. While you might not see the longer-term, multi-day moves we saw during last year’s bull market, daily trends are still strong.
On any given day, there have been at least a handful of breakout penny stocks to watch. Heading into the back half of the week, several stocks can be bought for under $5 right now. Will they be worth the risk? That’s something I’ll leave up to you to decide.
Vicinity Motor Corp (VEV)
Shares of Vicinity Motor Corp (NASDAQ:VEV) soared in late trading on Tuesday. The company supplies electric vehicles for public and commercial use leveraging dealer networks to offer its electric, CNG, and clean-diesel buses and electric trucks.
What To Watch With VEV Stock
The company announced that it began delivering its first Class 3 truck in Canada. According to the company, distribution of its VMC 1200 truck starts this month.
Pineapple Energy Inc (PEGY)
Shares of Pineapple Energy Inc (NASDAQ:PEGY) came back from the dead on Tuesday. The penny stock promptly bounced over 100% from its 52-week lows that it hit at the start of October. The solar energy solutions provider has experienced a slow bleed since early August when it announced follow-on orders of $2.4 million in units for deployment in Hawaii’s VPP Battery Bonus program.
What To Watch With PEGY Stock
What’s going on with PEGY stock now? This week the company filed an 8-K giving a date for its 2022 annual meeting. December 7th is the date that was set, and the official record date for voter eligibility is October 18th.
In addition to that, and what may have garnered some extra attention in the stock market today was a Form 4 filed by Northern Pacific Growth Investment Advisors. The details of the filing explain, “The reporting person sold an aggregate of 1,008,005 shares for a purchase price of $0.0001 per share to certain purchasers pursuant to those certain Stock Transfer Agreements, dated as of January 24, 2022, by and between the issuer and the purchasers identified therein.”
Ginkgo Bioworks (DNA)
Ginkgo Bioworks (NYSE:DNA) has steadily maintained a sideways trend amid the wild broader market volatility. The company recently boosted up its biosecurity platform with the acquisition of epidemiological data infrastructure assets from Baktus Inc. Ginko assumes ownership of specific proprietary datasets and a software platform. More acquisition news is on deck for its latest catalyst as well.
What To Watch With DNA Stock
This week the company announced the tuck-in acquisition of Altar. This company is a French biotech business developing adaptive lab instruments to integrate into Gingo’s Foundry. “As the range of programs we work on continues to expand, it is imperative that we have the best tools in rational design as well as the ability to leverage the inherent diversity and creativity that emerges from evolutionary processes,” said Nikos Reppas, Senior Director, Foundry Technology at Ginkgo Bioworks.
NextCure Inc. (NXTC)
Biopharmaceutical company NextCure Inc. (NASDAQ:NXTC) steadied its price in the stock market over the last few sessions. Following fresh 52-week lows on September 27th, NXTC shares have held up support levels consistently. Its focus is on developing cancer & other immune disease treatment candidates.
What To Watch With NXTC Stock
This week NextCure announced that it began a Phase 1b/2 trial evaluating its NC410 platform combined with Merck’s (NYSE:MRK) KEYTRUDA in patients with immune checkpoint refractory colorectal, esophageal, endometrial, and head & neck cancers or immune checkpoint naive patients with colorectal and ovarian cancers. Initial data is expected sometime next year.