Stock markets are on autopilot as the Dow climbed to a new record and Reddit (RDDT) debuted. RDDT stock gained 48.35% to close at $50.44. Its successful listing is not a reflection of the social news aggregator’s profit potential. Instead, it reflects the easing credit conditions.
Magnificent seven stocks are under scrutiny after the Department of Justice filed a suit against Apple (AAPL). The stock traded in a downtrend for weeks before this news. Similarly, Tesla (TSLA) is trending lower. The media is pivoting its news coverage away from full electric vehicle products. They are now promoting hybrid vehicles.
Metals
The market may turn its focus away from Bitcoin’s (BTC-USD) rise and toward gold. God prices rose to a record price above $2,200 per ounce. Unfortunately, gold mining stocks are in a severe downtrend. Newmont (NEM) broke investor trust when it slashed its dividend and announced asset sales. It has high debt to pay off.
Barrick Gold (GOLD) may bounce higher from here. The chart indicated a double-bottom, which is a bullish pattern, at around $14.50.
Copper prices strengthened after Chinese producers promised to cut supply. This token announcement helped Freeport-McMoRan (FCX) soar to $46.24, close to a new high in the last year.
Investors should exercise caution on Rio Tinto (RIO) and Vale (VALE). They traded at a discount for a reason. Commodity prices weakened last month, hurting the stock price of those two miners.
