Stock Market Outlook This Week: March 20th – March 24th
Whether you’re trading penny stocks or searching for the best high-dividend stocks to invest in for 2023, knowing what to expect in the week ahead could help you understand how to approach the stock market. This has already been a very volatile year with an underlying bearish trend spearheaded by inflation concerns and, now, the latest banking crisis.
Over the weekend, some of the biggest banking news included headlines that UBS (NYSE: UBS) made a $1 billion all-share bid for the embattled Credit Suisse (NYSE: CS). The Swiss bank has come under fire amid the Silicon Valley Bank-fueled contagion in the financial sector, stoking an initial run on regional banks.
Credit Suisse was recently provided an emergency credit line of 50 billion Swiss francs amid the latest global banking sector stress. There’s also a clause from UBS that allows for a deal to be void if credit defaults climb beyond 100 basis points or more, according to reports from the Wall Street Journal & people “close to the situation.”
The Stock Market This Week: Key Economic Data To Know March 20th – March 24th
Thanks to these underpinnings, stock market volatility is at some of the highest levels this year. A quick look at the VIX volatility index shows it sitting above $25.50 as of Friday’s close. Heading into the new week, investors will likely weigh the latest round of February CPI and PPI data against the Federal Reserve’s March meeting and rate decision mid-week. As it stands, the latest financial market turmoil has some hoping for no change in rates, while others are expecting at least a 25 basis point hike.
Stock Market News & Events On Monday, March 20, 2022
The start of the week is relatively quiet as far as major economic data is concerned. However, there will be commentary from central bankers, including the ECB’s President Lagarde, twice on Monday. Last week the European Central Bank hiked rates by half a percentage point, which came as somewhat of a surprise due to the turmoil in the banking sector at the time.
“We are monitoring current market tensions closely and stand ready to respond as necessary to preserve price stability and financial stability,” Lagarde said last week.
Stock Market News & Events On Tuesday, March 21, 2022
Tuesday will see the start of the March FOMC meeting though no details will come until Wednesday afternoon. More central bankers will be speaking, including ECB President Lagarde and Enria. Redbook retail data will come out before the opening bell, with existing home sales shortly after the 9:30 AM ET opening. Following the session’s close, the latest API crude oil stock numbers come out at 4:30 pm ET.
Stock Market News & Events On Wednesday, March 22, 2022
Wednesday marks the main event of the week with the FOMC March meeting press conference and the latest Fed interest rate decision. However, these are just some of the things to watch on Wednesday. The ECB’s President Lagarde speaks early in the morning, followed by ECB Lane and Panetta. There are also crude oil inventories to digest as the morning session winds down.
Stock Market News & Events On Thursday, March 23, 2022
With US rates and the March FOMC meeting in the rear-view on Thursday, eyes will likely turn to the start of the EU Leaders Summit. We’ll also see the latest round of building permits and new home sales. But what could get weighed the heaviest by investors is the new jobless claims data to follow Wednesday’s rate hike decision. A tight labor market has continued to bewilder analysts looking for a gauge on either a soft landing or a potential 2023 recession.
Stock Market News & Events On Friday, March 24, 2022
Friday has investors looking at US durable goods and PMI for the most part. There’s also data from the EU that includes March Services PMI and another day of the EU Summit. Other than these data points, investors may be looking to see what the FOMC’s Bullard has to say after the March Fed meeting and rate decision for clues on a hawkish or dovish Fed, heading into Q2.
What else should you prepare for in the stock market this week, and how should you be positioned to capitalize on the opportunities that come with it? Find out LIVE when you tune in to True Trading Group’s Stock Market LIVE Stream tonight on YouTube.
Penny Stocks To Watch
Thanks to these broad market events, there’s no shortage of things to watch in the stock market this week. Heading into Monday’s session, day traders may be looking at a few of the more granular aspects of the market; penny stocks in particular. Here are a handful of names that caught late-afternoon moves and could be ones that a few traders are watching at the top of the week:
Connect Biopharma (CNTB)
Friday’s post-market session saw shares of Connect Biopharma surge. News that the company’s post hoc data analysis from its Phase 2b CBP-201 atopic dermatitis treatment trial showed improvements compared to placebo. Results were presented at the American Academy of Dermatology Annual Meeting.
Ardelyx Inc. (ARDX)
Another one of the biotech penny stocks that picked up steam during Friday’s post-market session, Ardelyx, retested the 2023 high area. ARDX stock has been on the radar for months. The price extension has been powered by Ardelyx and its series of critical milestones. Among these was one that came out right before the start of 2023. Ardelyx reported an FDA committee backed its kidney disease drug candidate and recommended its approval. The FDA also granted Ardelyx an appeal for its treatment candidate, Xphozah, and a Complete Response letter for a New Drug Application.
As a result of the strong performance, analysts have boosted their outlook on the company. Wedbush, for example, upgraded the penny stock to Outperform and raised its price target to $6. Something that could be stoking speculation is what was said in its last quarterly report. The company said it plans to resubmit its application seeking FDA approval of Xphozah early in the second quarter.
Ring Energy (REI)
Ring Energy shares slumped to fresh 52-week lows last week. But what could be helping boost sentiment around the penny stock is recent insider activity. The energy company’s CEO, Paul McKinney, reported purchasing a total of 100,000 shares of REI stock between March 15th and 16th. Average prices range between $1.72 and $1.78 per share, bringing his total direct holdings to more than 1.3 million shares.