- NYSE: RKT is set to fall on Monday amid fading chances of imminent fiscal stimulus.
- Election uncertainty is also weighing on markets.
- Rocket Companies Inc is not immune to rising US coronavirus cases.
The last week of October is set to kick off with a fall, and that may adversely affect Rocket Companies Inc (NYSE: RKT). There is nothing company-related that is set to weigh on the stock, nor push it higher. Here are three reasons for the fall, but when they improve, Rocket's solid fundamentals could help it recover swiftly and resume the upswing seen before the recent rise.
Here are three reasons for the upcoming downside correction:
1) Stimulus stalemate: "They are moving the goalposts" – both Democratic House Speaker Nancy Pelosi and Republican White House Chief of Staff Mark Meadows used the same terms to blame each other for the deadlock in stimulus talks. When both parties seemed close to a deal last week, equities were on the rise, and the finger-pointing is now weighing on them.
2) Election uncertainty: Politicians are moving away from a deal as November 3 – election day – is getting closer. Over the weekend, there have been only few opinion polls and markets are becoming more anxious to know if the debate had an impact on voting intention. Challenger Joe Biden is leading against President Donald Trump, but there is a high degree of uncertainty. Moreover, the Senate race is closer.
3) Coronavirus cases are rising: While the world is focused on the US elections and the European COVID-19 flareup, the disease is spreading in America. Daily cases have hit records while hospitalities and mortalities are also on the rise. That may have a detrimental impact on the economy.
Covid cases are surging and politicians are too busy with the elections to approve a new relief package – that sums up the current situation for markets and Rocket Companies Inc is not immune.
RKT Stock Forecast
Rocket Companies Inc. is changing hands some 1.85% lower in Monday's pre-market trading. It is set to erase all of Friday's gains, which sent it to a closing level of $20.57. Critical support awaits at $20, which is a psychologically significant level and also a low point last week. Resistance is at $21.70, a line that worked as support in early October.
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