What Did The Stock Market Do Today, September 27, 2022?
Whether you’re trading penny stocks or not, what’s happening in the stock market today is important. If you missed Tuesday’s session, you missed one of the wildest. The Dow and the S&P 500 (NYSEARCA: SPY) tapped fresh 2022 lows in the stock market today. Despite weaker tech stocks, the Nasdaq (NASDAQ: QQQ) held the line, still failing to put in a new low of the year, which was already set back in June when the ETF touched $269.28.
One of the biggest catalysts contributing to today’s rout was speakers from the Federal Reserve. FOMC Member Bullard spoke, along with Chicago Fed President Evans and Federal Reserve Bank of San Francisco President Mary Daly, long after the stock market closed. Early remarks from the Chicago Fed President highlighted the potential that the Fed is pushing for at least another 100 basis points before the end of the year.
Fed Speak Dictating Stock Market Outlook
His sentiment, however, was leaning toward a slower pace explaining that the impact of raises needs time to work itself out in the market. He remains “cautiously optimistic” that the economy can avoid a recession, assuming no other external shocks exist.
At an economic conference on Tuesday, Bullard said, “We have increased the policy rate substantially this year, and more increases are indicated…We have just now gotten to the point where we can argue we are in restrictive territory.” He also said he thinks that policy needs to stay toward the higher rate for “some time” to ensure the “inflation problem” is under control.
Fed Daly also echoed a similar sentiment in late comments on Tuesday. She explained that the Fed could fight inflation without inciting mass unemployment and an economic downturn. She also believes the Fed is on pace to hit its 2% inflation goal by the end of next year or 2024. However, it will require maintaining interest rates higher for “an extended period of time.”
This kicks off a busy week for Fed commentary, and we’ll include a schedule at the end of this article.
Tech Stocks Weigh On Markets But Don’t Break Lows
Despite the Nasdaq not making new lows for the year, tech weighed heavily on broader markets. Major market leaders, including Apple (NASDAQ: AAPL), Amazon (NASDAQ: AMZN), and AMD (NASDAQ: AMD), traded lower. However, others, including Tesla (NASDAQ: TSLA), not only managed to recover by the end of the session, but TSLA stock also surged after the closing bell.
CEO Elon Musk has weighed in on the state of the economy more frequently lately. Following an interview with Wharton Finance Professor Jeremy Siegel on CNBC’s Halftime Report, Musk Tweeted out, “Sigel is obviously correct,” referring to his statement about the Fed’s actions to curb inflation. Siegel said that the Fed was “too easy” throughout 2020 and 2021, and now “Oh my God, we’re going to be real tough guys until we crush the economy,” in a mocking tone.
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The US recently approved electric vehicle charging station plans for all 50 states, covering 75,000 miles of highways. States will have access to more than $1.5 billion to help build EV chargers. This has helped EV makers and companies with exposure to the industry. TSLA stock exploded in after-market trading to highs of more than $287.
What To Watch In The Stock Market On Wednesday, September 28, 2022
With Tuesday’s session and fresh 2022 lows behind investors, it’s time to look ahead. What’s going on in the stock market tomorrow? More Fed speak and early discussion from the ECB. The early hours of Wednesday will see ECB President Lagarde speaking, which could impact markets as they open in the U.S. FOMC Member Bostic, Bowman, Bullard, and Fed Chair Powell speak before the lunch hour.
Meanwhile, economic data will be front and center, with Pending Home Sales coming out mid-morning and Crude inventories coming shortly after.
What To Watch In The Stock Market The Rest Of The Week:
More ECB speak on Thursday and the big data from US GDP, initial jobless claims, and Real Consumer Spending. FOMC Bullard and Mester will also give comments on September 29th. Friday will see U.K. GDP reported along with Eurozone CPI. U.S. Core PCE Price Index data and Personal Spending figures also get released before the opening bell. As far as Fed speak on Friday, look for comments from Vice Chair Brainard, FOMC members Mester, Williams, and Bowman throughout the day.
Penny Stocks To Watch
Now that the broader market details are out of the way let’s get down to business and talk about penny stocks. In most cases, cheap stocks tend to move unrelated to the overall market. Speculation takes a leading role in secular trends, and things like short squeeze stocks, low float stocks, and penny stocks with unusual options activity become trending topics. Certainly, new IPOs like Atlis Motor Vehicles (NASDAQ: AMV) have prompted a more risk-on directive heading into the Wednesday session.
Shares of the freshly minted public company surged in late afternoon trading. The company had raised money via a Regulation A offering, began trading at $30.11, and promptly reached highs of $200 after the stock market closed. AMV stock is another one of the electric vehicle IPOs captivating retail attention and could be one of the more high-risk stocks to watch.
With this in mind, here are a few of the penny stocks retail traders have begun watching ahead of Wednesday’s session and what’s going on with them right now.
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Aytu BioPharma Inc. (NASDAQ: AYTU)
The biotech company’s shares have imploded this year, but Tuesday’s aftermarket session for AYTU stock saw a different trend. Aytu BioPharma announced Q4 and full-year fiscal 2022 results. It reported record revenue, which beat estimates. However, it did fall short of Q4 EPS expectations.
Josh Disbrow, Chief Executive Officer of Aytu BioPharma, made comments that “The 28% prescription growth during the fourth quarter is largely being driven by execution of our sales force and the leverage we’re gaining through Aytu RxConnect, our proprietary patient access program that enables affordable, predictable, hassle-free patient access to Aytu’s prescription products. Our sales force is making incremental strides with our physician and patient centric messaging, and we are experiencing tailwinds from the growth of our key prescription markets, particularly within ADHD.”
Ra Medical Systems Inc. (NYSEAMERICAN: RMED)
Another one of the penny stocks under $1 that gained ground on Tuesday was Ra Medical Systems. It had already recorded a banner day, rallying more than 17% during regular trading. RMED stock continued higher during the aftermarket session. No news came alongside the move. However, traders have paid closer attention to the biotech company after approving a 1-for-50 reverse stock split. The effective date of the split is September 30th, with split-adjusted trading anticipated to begin on October 3rd. It wasn’t just the fact that there would be a reverse split but the reasoning for the split.
In a statement from Ra Medical CEO Will McGuire, he explained that “We plan to file a proxy in the coming weeks for another Special Meeting that will allow our stockholders to vote on the proposed merger with Catheter Precision. Assuming the merger proposal passes and the other conditions under the merger agreement are satisfied, we expect to complete the transaction by the end of 2022.”
Volta Inc. (NYSE: VLTA)
Like Tesla, Volta stock has come into focus after the latest excitement in the EV space. Volta provides electric vehicle charging and folds in multimedia; what? Yes, you read that correctly, and yes, it is creating an EV charging network that also leverages the charging stations as advertising billboards. For example, Michelin recently partnered with Volta to bring its “Motion For Life” campaign to Volta’s media network.
In its most recent earnings update, Volta reported more than 120% revenue growth compared to the same period last year. Meanwhile, its media revenue jumped 73% during the same period. CEO Vince Cubbage has mentioned this dynamic and how it works for Volta, “By building not just a network of chargers, but a dual energy and digital advertising platform, we believe Volta can scale revenue even faster than the EV adoption curve – offering the quickest path to profitability and the highest revenue per station.”
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