US Independence Day, 2021: the American economy still leads the world

On July 4th, the United States will celebrate its 245th Independence Day. Despite being the strongest economy in the world, the US has gone through economic slumps from time to time. However, it has remained resilient, and a manifestation of that is that the dollar remains the world’s preferred currency.

From meagre beginnings to economic superpower

Aside from receiving various forms of aid from France to finance the American Revolutionary War, the Continental Army even asked private citizens for help. For example, prior to the Battle of Trenton in 1776, General George Washington asked Robert Morris for $10,000 (equivalent to about $310,000 in 2021) to provide provisions for his starving army. Five years later, during the Yorktown campaign, Morris would help Washington secure $1.4 million in loans (equivalent to more than $43 million in 2021). 

According to Measuring Worth, US Nominal GDP in 1790 was $189 million, and by 2019 that number reached $21.4 trillion. Nominal GDP per capita rose from $48 to more than $65,000 in 2019. 

In terms of nominal GDP in 2020, the US was the leading economy in the world, with China trailing behind by about $6 trillion. However the US’s GDP per capita is more than six times greater than that of China. The US’s economic superpower status becomes more evident compared to Europe’s leading economy, Germany, which stands at about $4 trillion and is the fourth-largest economy worldwide. South America’s leading economy is Brazil — the ninth-largest economy worldwide — with a GDP of about $2 trillion. 

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Although it has the largest economy worldwide, the US’s economic superpower status has had its bumps along the way.

The crash of 1929

One of the most famous recessions in the US economy was the stock market crash of 1929 and the subsequent Great Depression. Only ten months into Herbert Hoover’s term as President of the United States,the stock market crashed. On October 29, 1929, known as Black Monday, the DJ30 fell close to 13%. The next day, known as Black Tuesday, the DJ30 plummeted an additional 12%. The DJ30 would continue its freefall until 1933 by when it had lost almost 90% of its value. It would take two decades for the DJ30 to return to its value prior to the Great Depression. 

Some explanations offered as to why the market crashed include: overpricing of stocks; the economy had reached a peak and would fall at some point; overproduction in many industries, causing companies to unload merchandise at a loss; people were “buying on margin” due to the fact that credit was easily accessible; and the fact that the government had raised interest rates weeks before the crash, which in turn, influenced market stability and sharply reduced economic growth. Despite all the explanations given, after the initial plummet, panic leading to “bank runs” only made the situation worse.  

Stock market crash of 1987

1929 was not the only year the stock market crashed. On October 19, 1987, the DJ30 fell more than 22%, the largest one-day drop until that point. Similar to the roaring 1920s when the DJ30 had increased sixfold, during the 1980s, the DJ30 more than tripled its value. The crash affected markets worldwide. Two reasons given for the crash include a series of monetary and foreign trade agreements whose goal was to depreciate the dollar and alter trade deficits, and computer-driven trading models.

The Great Recession

Similar to previous economic crises, right before the onset of the great recession beginning in 2007, the DJ30 surpassed $14,000 for the first time in US history. However, over the next 18 months, the DJ30 would lose more than half of its value, and many invested in the stock markets lost their life savings. The Great Recession was the most serious recession since the Great Depression in the 1930s.

One of the main causes of the Great Recession was the subprime mortgage crisis. As the US real estate market boomed in the early 2000s, banks provided high interest loans to people with weak credit history. Financial institutions took on numerous risky loans and as the housing market declined, many could not repay their loans, and banks foreclosed on assets that were now selling at much lower prices. In 2008, the crisis reached a peak when Lehman Brothers declared bankruptcy and other financial institutions were on the verge of collapsing.

The federal government attempted to stimulate the economy by providing an unprecedented $787 billion aid package. Some believe this saved the economy, while others  think  this caused a prolonged recovery period that would have been much shorter without the bailing out of the banks. 

Covid-19

2020 started out looking like another good year for the economy. In January 2020, reports began of people mysteriously dying in Wuhan, China. There was much confusion and uncertainty about a virus, specifically its lethalness and means of transmission from person to person. However, when it became clear that its effects would have a detrimental impact on the economy, the markets started to plunge. Within a month, the DJ30 plunged more than 10,000 points, hitting its low of just above $19,000 on March 15th. The SPX500 also dropped about 30% during the same time. 

Amidst the confusion, borders closed, travel was halted and self-imposed lockdowns were implemented by governments worldwide. Along with the restrictions, the US government acted quickly, providing stimulus packages to the many parts of the economy affected by the pandemic. By May 31, both the DJ30 and SPX500 had regained most of the value lost due to the pandemic.

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While some sectors would take longer than others to recover from the pandemic, companies whose services could address the new realities of lockdown prospered tremendously. For example, Zoom, which provides video conferencing, saw its share price increase fivefold at its peak. Amazon, which became the preferred way to purchase goods during the lockdown and also allowed people to avoid the crowds of the mall, saw its stock price almost double within a few months. Peloton Interactive, providing home fitness services, saw its share price increase eightfold during the pandemic.

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The coronavirus also introduced a new generation of people to the markets. With the markets in a freefall and people locked up at home, many began opening accounts on various trading platforms. JMP Securities estimates that more than 10 million new brokerage accounts were opened in 2020.

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The currency of the world: the US dollar

Due to the strength of the US economy, the US dollar remains the reserve currency of the world, an outcome stemming from the Bretton Woods Agreement in 1944. According to the IMF, 61% of all foreign bank reserves and around 40% of world debt is denominated in US dollars. 

The US government began issuing paper money in 1861 to help finance the Civil War. Until then, currency had been issued in coins. Congress authorised the Treasury Department to issue “Demand Notes.” Known as greenbacks, because of the green ink on the back of the note, these demand notes were non-interest bearing, and could be redeemed for gold or silver upon demand. A year later, these notes were replaced by legal tender notes.

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In 1913, the United States Congress passed the Federal Reserve Act establishing a central bank to oversee monetary policy. A year after the creation of the Federal Reserve System, the first Federal Reserve Notes were issued. 

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After taking office in 1933, President Franklin Delano Roosevelt began detaching the US dollar from the gold standard, meaning that the value of the paper currency was no longer directly linked to gold. In April 1933, Roosevelt issued Executive Order 6102, requiring people to turn in “all gold coin, gold bullion and gold certificates now owned by them” to the Federal Reserve Banks by May 1, 1933. In exchange for their gold, people were compensated $20.67 per ounce. Failure to turn in gold to the government was punishable by a fine of up to $10,000 and a prison sentence of up to ten years.  

Within two weeks of the May 1 deadline, the government had collected $300 million worth of gold coins and another $470 million of gold certificates. 

The Gold Reserve Act was passed in 1934 and completed the transfer of ownership of all monetary gold in the US to the US Treasury. The price of gold was raised to $35 per ounce, which increased the value of gold held by the Federal Government by 69%. This price would remain until 1971 when President Nixon declared that the US would no longer convert dollars to gold at a fixed price, making the US dollar a fiat currency. 

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A resilient economy with an uncertain future

One trend that can be seen over the course of time is the resilience of the US economy. Though there might be dark days from time to time, the economy has continually bounced back. As the United States celebrates its 245th birthday, it remains the leading economy in the world, although China is right on its tail. With an unprecedented Federal debt of close to $30 trillion dollars, it remains to be seen whether the US can retain its advantage in the long run.

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How to invest in Chip-tech stocks

If you are reading this, you are using a semiconductor, otherwise known as a “computer chip.” The small processing unit is one of the most widely used elements in contemporary technology and can be found in anything from your wristwatch, to your washing machine to billion-dollar space stations. With such a dominant presence in our daily lives, it is no wonder that the semiconductor industry has significant potential for investors. To give investors exposure to the semiconductor industry, eToro has created the Chip-Tech Portfolio. 

Explore Chip-Tech

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Here are some quick figures to help you to understand the financial significance of this market:

  • More than one trillion chips were shipped globally in 2020
  • Global chip sales in 2020 totalled more than $440 billion
  • The market is expected to grow 8.6% annually, reaching $800 billion by 2028

The semiconductor industry

It is really difficult to imagine a world without semiconductors. So many of the things we do rely on these chips, which are used both to carry out digital processes and to store information. The chips are made of silicon, which is used both due to its abundance as well as its conductive capabilities. Since it conducts electricity, but not as quickly and efficiently as copper, for example, it can be used to carry precise electrical signals, which are essential for computer processes. Hence, the name “semiconductor.”

In 2020, the industry was worth around $400 billion. As Impressive as that figure is, the market is expected to double over the next 7 years. It is no wonder, then, that many investors are looking to the industry as a growth opportunity.

The 2020 chip shortage

The Covid-19 pandemic of 2020 attacked the semiconductor industry from both sides. On the one hand, lockdowns forced many chip manufacturers to slow down or halt activities altogether, causing a decrease in global supply. 

At the same time, many companies shifted to working from home, thereby relying on technologies such as telecommuting, which require processing power. Therefore, the demand for chips was on the rise. The combination of decreased supply and increased demand was the perfect storm.

The global shortage disrupted the activity of numerous companies across various industries. The automotive industry was hit first, causing several carmakers to temporarily shut down their operations. Later, other industries were impacted, including smartphone manufacturers, TV companies, video game console producers and many others.

What drives the chip industry’s growth?

The world is increasingly becoming more digital and more computer reliant. If in the past, a car, washing machine or wristwatch had little or no digital components, today, they all have powerful computer chips in them. Moreover, in the coming years, there will be several growth drivers that have the potential to propel the industry to new heights.

5G technology

The next-generation cellular data network is already active in some parts of the world and is gradually being rolled out in others. 5G promises significantly faster cellular data transfer speeds, enabled by a large number of small antennas and, of course, computer chips. In the near future, many more appliances will become connected and “smart,” utilising Internet of Things (IoT) technology and 5G, both of which require the use of semiconductors. 

Automotive industry technology

There are two major shifts in the automotive industry. One, the shift to electric vehicles, is already in motion, as innovative companies such as Tesla are dominating the industry, while more traditional companies, such as Ford, are also reorganising their manufacturing capabilities to produce electric cars. The second shift is the introduction of driverless cars. Autonomous vehicles may become the most significant revolution in travel since the invention of the steam engine, as it could potentially put an end to traffic jams and even to the concept of owning private cars. Either way, both the shift to electric and driverless cars are technology-heavy processes, which will require a significant amount of processors. 

Smart cities 

Another significant change that is already in the works is the creation of smart cities. Using 5G, machine learning, image recognition and many other technologies, cities around the world are becoming smarter. Smart city capabilities enable municipalities to better organise public transportation, monitor the city’s infrastructure, prevent crime and much more. Smart cities require a combination of different technologies, hardware and software, which will also increase the need for more semiconductors. 

Investing in chip stocks

To enable its users to gain exposure to the semiconductor industry and chip stocks, eToro has created the Chip-Tech Portfolio. This ready-made, thematic investment strategy offers investors a fully allocated portfolio, comprising the entire chip supply chain: chip designers, foundries, integrated device manufacturers, silicon wafer producers, and more. It also provides investors with geographic diversification, as capital is allocated to chip companies in the US, Europe, and Asia. 

Invest in Chip-Tech

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Sources:

  1. https://www.statista.com/statistics/802632/world-semiconductor-shipments/
  2. https://www.semiconductors.org/global-semiconductor-sales-increase-6-5-to-439-billion-in-2020/
  3. https://www.fortunebusinessinsights.com/semiconductor-market-102365

CopyPortfolios is a portfolio management product, provided by eToro Europe Ltd., which is authorised and regulated by the Cyprus Securities and Exchange Commission.

CopyPortfolios should not be considered as exchange-traded funds, nor as hedge funds.

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Euro 2020: from TV rights to sponsorship, meet the brands behind the tourney

After five years of waiting, the 16th European Nations Football Championship, also known as “Euro 2020,” is in full swing, as the round of top 16 continues today. This year, the tournament is making history, as for the first time ever, it is being played in eleven countries.

Euro 2020 broadcasting rights

UEFA, which organises the competition, is also the owner and seller of TV rights. The final amount UEFA secured has not yet been disclosed, but estimates are that this tournament will bring in less than the €1.02 billion collected in 2016. The reason for the decline is the negative impact the global Covid-19 pandemic has had on television rights sales.

What is certain is that UEFA will donate €371 million to the 24 participating countries, meaning that each national team will receive €9.25 million, plus performance bonuses.

Euro 2020 sponsors

On the sponsorship side, several major brands are competing fiercely, and none more than sports equipment manufacturers. Nike and Adidas, perhaps the most recognisable  global sports brands, are sponsoring nine and eight teams, respectively, followed by Puma which only has four teams carrying its insignia.

On the partners’ side, Volkswagen is one of the main sponsors of the competition, signing agreements with six teams. Other official partners of the tourney include Just EatHeineken and Coca-Cola.

Before the top 16: Bottle wars

We are now in the knockout phase of the tournament, in which the best 16 teams are facing each other. However, from a business standpoint, the fiercest action took place at the very beginning of the competition. In a press conference, Portuguese superstar, Cristiano Ronaldo, removed two bottles of Coca-Cola from the table, and asked for water. The Coca-Cola stock fell 1.34% the next day, causing a loss of $3.2 billion. However, while initially attributed to Ronaldo’s actions, a closer examination shows that the stock price was down even before the press conference had even started. If anything the share price went up after the press conference.

Similarly, French star Paul Pogba also removed a bottle of Heineken at a press conference, and the Dutch brewer’s stock rose 1.4% the next day.

The financial impact of Euro 2020

Regarding the financial sectors that may benefit from Euro 2020, there are several clear choices: sports equipment manufacturers, which are taking advantage of the competition to significantly increase their sales of jerseys or equipment, and breweries, which are expected to see an increase in sales, as the beverage is a popular choice among football viewers. 

However, other industries may also benefit from the tournament, including media and entertainment and even technology infrastructure companies, which support the streaming of the games over a variety of platforms, networks and mobile devices.

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Wall Street rallies to new highs

Last Week’s Top Five Market Winners

Nasdaq Stock Market (NASDAQ)

The past week included significant gains for TaskUs Inc. (TASK), Globalstar (GSAT), Smith & Wesson (SWBI), Ocugen Inc. (OCGN) and PubMatic Inc. (PUBM).

  • TaskUs Inc. (TASK) shares soared to a new high following the data outsourcing firm’s recent IPO. 
  • Shares of tech communications company Globalstar (GSAT) jumped following a very bullish buy recommendation by B. Riley Financial analyst Mike Crawford.
  • Smith & Wesson (SWBI) shares popped after the firearms maker reported record-breaking fiscal fourth quarter sales.
  • Ocugen Inc. (OCGN) shares climbed after the biotech company announced that it would be included in the Russell 3000 index.
  • News that Google will delay its phase-out of third-party cookies until 2023, rather than by the end of 2021, sent online advertising stock PubMatic Inc. (PUBM) soaring.

NASDAQ TOP-PERFORMING STOCKS

STOCKWEEKLY CHANGECURRENT TRADING PRICESECTOR
TaskUs Inc. (TASK)11.97 (+52.04%)34.97Services
Globalstar (GSAT)0.59 (+45.74%)1.88Technology
Smith & Wesson (SWBI)7.07 (+30.28%)30.42Industrial goods
Ocugen Inc. (OCGN)1.78 (+27.09%)8.35Consumer goods
PubMatic Inc. (PUBM) 8.75 (+25.96%)42.46Technology

New York Stock Exchange (NYSE)

Strong results were recorded on the New York Stock Exchange for Virgin Galactic Holdings Inc. (SPCE), 3D Systems Corp. (DDD), Semrush Holdings Inc. (SEMR), SM Energy Co. (SM) and Callon Petroleum Co. (CPE).

  • Virgin Galactic Holdings Inc. (SPCE) shares soared on news that the Federal Aviation Administration (FAA) had approved the space tourism company for passenger space flights.
  • 3D Systems Corp. (DDD) shares surged following the 3D printing company’s announcement of a new collaboration with Israeli CollPlant Biotechnologies to use bioprinting technology for breast reconstruction.
  • Shares of Internet analytics firm Semrush Holdings Inc. (SEMR) jumped following news that Google will delay its phase-out of third-party cookies until 2023.
  • Energy stocks of SM Energy Co. (SM) and Callon Petroleum Co. (CPE) benefitted from a boost to oil prices due to growing demand.

NYSE TOP-PERFORMING STOCKS

STOCKWEEKLY CHANGECURRENT TRADING PRICESECTOR
Virgin Galactic Holdings Inc. (SPCE)19.11 (+51.93%)55.91Consumer Goods
3D Systems Corp. (DDD)11.35 (+40.61%)39.30Technology
Semrush Holdings Inc. (SEMR)6.96 (+39.68%)24.50Technology
SM Energy Co. (SM)5.74 (+27.45%)26.65Consumer Goods
Callon Petroleum Co. (CPE)11.29 (+23.51%)59.32Consumer Goods

Last Week’s Top Five Market Losers

Nasdaq Stock Market (NASDAQ)

The last seven days were less than ideal for Globus Maritime Ltd. (GLBS), SoFi Technologies Inc. (SOFI), Canaan Inc. (CAN), MicroStrategy Inc. (MSTR) and 9F Inc. (JFU).

  • Globus Maritime Ltd. (GLBS) shares were up at the start of the week following positive earnings; however, the rally was short-lived and the stock tanked after the shipping company priced its 10 million share offering at $5 per share.
  • SoFi Technologies Inc. (SOFI) shares were down after a recent SEC filing showed that the lock-up period for the fintech stock was set to expire on Monday, June 28th.
  • Cryptocurrency stocks Canaan Inc. (CAN) and MicroStrategy Inc. (MSTR) dropped after the Chinese government had local power companies cut electricity to crypto mining machines.
  • Shares of Chinese fintech company 9F Inc. (JFU) declined almost 14% this week. 

NASDAQ WORST-PERFORMING STOCKS

STOCKWEEKLY CHANGECURRENT TRADING PRICESECTOR
Globus Maritime Ltd. (GLBS)-0.99 (-19.57%) 4.07Industrial Goods
SoFi Technologies Inc. (SOFI)-4.21 (-18.27%)18.83Services
Canaan Inc. (CAN)-1.48 (-16.30%) 7.60Technology
MicroStrategy Inc. (MSTR)-96.41 (-14.91%)550.05Technology
9F Inc. (JFU)-0.37 (-13.96%)2.28Financial

New York Stock Exchange (NYSE) 

On the New York Stock Exchange, Rite Aid Corp. (RAD), Douyo (DOYU), AMC Entertainment Holdings Inc. (AMC), Pampa Energia (PAM) and XPeng Inc. (XPEV) stocks all experienced negative movement over the past week.

  • Rite Aid Corp. (RAD) shares tanked after the drugstore chain reported its latest set of earnings.
  • Douyo (DOYU) shares dropped as investors waited for Chinese approval of the gaming site’s deal with Huya.
  • AMC Entertainment Holdings Inc. (AMC) shares fell after CEO Adam Aron tweeted about the theatre operator’s plans for shareholder dilution.
  • Pampa Energia (PAM) shares were down following news of a decrease in interest from the world’s largest hedge funds in the Argentinian electric company.
  • XPeng Inc. (XPEV) shares had a volatile week amid regulatory concerns and ongoing US-China tensions that could affect the Chinese electric vehicle maker.

NYSE WORST-PERFORMING STOCKS

STOCKWEEKLY CHANGECURRENT TRADING PRICESECTOR
Rite Aid Corp. (RAD)-3.73 (-18.52%)16.41Services
Douyo (DOYU)-1.18 (-14.27%)7.09Technology
AMC Entertainment Holdings Inc. (AMC)-5.20 (-8.77%)54.06Consumer Goods
Pampa Energia (PAM)-1.15 (-6.93%)15.45Utilities
XPeng Inc. (XPEV)-3.07 (-6.79%)42.16Consumer Goods

Highlights and Lowlights

After a brief dip into negative territory last week, the US stock indexes rallied. The positive momentum lifted both the SPX500 and the NSDQ100 to new record highs, with 2.8% and 2.4% gains respectively. Percentage-wise, the DJ30 outperformed them both, adding an optimistic 3.4% for the week.

Fed Chairman Jerome Powell downplayed inflation concerns raised last week in his testimony before Congress. Powell said he believes that the recent spike in consumer prices will eventually ease, although he also acknowledged lingering economic uncertainty as pandemic restrictions are lifted. 

What’s in Store for the Week?

General Mills and Bed Bath & Beyond will report earnings on Wednesday. Investors will be watching for several key economic reports on the US housing and labour markets. June’s nonfarm payrolls report will be released on Friday, which is highly anticipated after the disappointing job gains for April and May. 

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Bitcoin eyes $35K after volatile week

Headwinds from China collide with optimism in Latin America

Bitcoin is bouncing towards $35K, after a storm of volatility sent the crypto asset down to its lowest point in nearly five months.

While enforcement in China and a Bitcoin heist in South Africa have added to the uncertainty pushing prices lower, the market is being supported tailwinds from the West: El Salvador president Nayib Bukele has revealed plans for a Bitcoin airdrop, and Mexican billionaire Ricardo Salinas Pliego has said his bank is working to be the first in Mexico to accept Bitcoin.

On this mixed news, Ethereum has risen back to almost $2K, TRON and Cardano are celebrating double-digit gains, and Dogecoin has surged 40% as Elon Musk and Jack Dorsey make plans to discuss Bitcoin.

This Week’s Highlights

  • eToro lists Algorand, Polygon, and Basic Attention Token
  • El Salvador plans airdrop
  • A16z launch world’s largest crypto fund

eToro lists Algorand, Polygon, and Basic Attention Token

eToro is listing Algorand (ALGO)Polygon (MATIC), and Basic Attention Token (BAT), taking the total number of cryptoassets available to 26.*

Algorand is the world’s first pure proof-of-stake crypto, and was founded by Turing award winner Silvio Micali. Polygon is a leading layer 2 network for Ethereum, and Basic Attention Token is used to incentivize users of the Brave web browser.

El Salvador plans airdrop

Bitcoin was given a midweek boost by news from El Salvador, where President Nayib Bukele announced that crypto will become legal tender on September 7th. He also promised citizens $30 in Bitcoin for signing up to the local ‘Chivo’ wallet.

With a population of around 6.4 million, the sudden influx of El Salvadoran Bitcoin users could increase the user base by 2.5%, according to analyst Willy Woo. Furthermore, it could potentially add more than $100 million in buying pressure as El Salvador’s government purchases the Bitcoin needed for distribution.

A16z launch world’s largest crypto fund

Despite price volatility, the cryptoasset market continues to attract investment from big players.

Renowned Silicon Valley venture capital firm Andreessen Horowitz announced last week that it has raised $2.2 billion to create the largest crypto fund ever. This will invest in both seed-stage projects and later-stage networks.

“We believe that the next wave of computing innovation will be driven by crypto,” wrote the firm in a blog post, claiming they are “more excited today about what comes next than ever before.”

The week ahead

After several weeks of consolidation, traders are likely to be expecting more sideways action. Though this could be disrupted by a break above $35K showing bullish momentum, or a bearish drop through the recent low just above $28K.

For Ethereum, volatility could be catalyzed by an upcoming upgrade. The highly-anticipated EIP 1559 proposal went live this week on Ropsten testnet—an alternative blockchain for testing—and a date for the upgrade to hit mainnet is expected to be set soon.

* 24 in the US

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What are meme stocks? The people-driven market phenomenon explained

From GameStop to AMC, “meme stocks” have become an overnight sensation in global stock markets. These Internet forum-driven stocks have attracted new retail investors into the market and left many hedge fund managers scratching their heads, as they try to tackle this new investment phenomenon. But what exactly are meme stocks and are they here to stay?

They first came to prominence in January this year, when US video game retailer GameStop (GME) soared 1,900% in under a month, propelled by Reddit forum r/wallstreetbets and other online retail investor communities. This humbled a number of professional hedge fund investors who were positioned aggressively for the share price to fall, and highlighted the rising power of retail investors who could no longer always be seen as the investment underdogs. GME’s share price then fell 90% nearly as quickly as it rose as retail investors moved on to other stocks.

Since then the investor community following these stocks has only grown. 

  • Worldwide Google searches for ‘meme stocks’ are now more than double January’s levels. Similarly, the r/wallstreetbets investor community has over 10.5 million subscribers, more than five times the amount at the beginning of the year.  
  • Our very own eToro site shows GME with more followers than much larger stocks such as the US’s largest oil company Exxon (XOM) and largest bank JP Morgan (JPM) combined. 
  • Meme stocks have recently come back to prominence and with more stocks involved. Our 15-stock MEME index has risen over 50% in the last month, with the mainstream S&P 500 index up only 3% by comparison.

What makes a meme stock?

  1. A large social following: The word ‘meme’ itself is far from new and can be traced as far back as ancient Greek, where it meant ‘imitated,’ although it was made popular by Richard Dawkins in his book, The Selfish Gene. Today, we see these ideas being communicated, discussed, and analysed, across online investor forums, from the 10.8 million subscribers on r/wallstreetbets to our own eToro social investment network and others. This democratisation of investment and growth of community has been catalysed by commission-free trading, fractional share ownership, and online analysis tools.
  2. Out-of-favour: These meme businesses are often struggling or trying to implement a turnaround plan. This often means they have few or no profits today, and that many professional investors are ‘shorting’ them, i.e., trading in the belief that their share prices will fall. GME, for example, has reported no profits for the last three years and in January, investors were ‘shorting,’ or trading against, over 100% of its shares.
  3. Well-known smaller brands: Meme stocks are usually smaller, consumer-facing companies that are well known to many investors. They are often present in the shopping mall, such as GME, cinema operator AMC Entertainment (AMC), or retailer Bed, Bath & Beyond (BBBY) or known for once selling well-known tech products, such as Blackberry (BB) and Nokia (NOK). For example, GME had a stock market value of a little over US$1 billion before its January price spike, making it a minnow versus large caps like Apple, with stock market values of two thousand times more at US$2 trillion.
    This combination of small, often struggling brands, supported by large online investor followings, leads to the final key meme characteristic:
  4. Share price volatility: Smaller companies are normally riskier than larger companies, with less diversification or resources. In addition, the lack of profits makes traditional company valuation measures difficult. Rational investors will also often disagree on the outlook for the success or otherwise of turnaround plans. Also, a sharply rising share price will force those trading against a company to have to actually buy the shares — pushing its price up even further. These ingredients all combine to make so-called meme stocks a lot riskier than many other stocks in the market, with much greater share price ups and downs than usual.

What does it mean?

Recent weeks have seen the meme stock phenomenon return, with more stocks involved now, with more retail investors following online, and with these stocks posting share price returns well above broader indexes. However, the focus on smaller and riskier companies and their huge share price volatility means investors need to be very careful. Investors should always educate themselves on the investments and their risks, and be diligent about diversifying across multiple stocks and asset classes.

Meme stocks are here to stay

The rise of the retail investor was initially written off as a lockdown-driven one-off. We disagree, for the following reasons:

  1. The foundations are structural and predate lockdowns, with the growth of online investment communities, online analysis tools, and the introduction of commission-free trading and fractional share ownership.
  2. Retail engagement has continued to rise, not fall, even as the world has started to reopen. Subscriber numbers on investment platforms, including eToro, are expanding rapidly, while markets are seeing increased retail fund inflows, and increasing imitation, with exchange-traded funds now being launched* to try and mimic retail investor strategies.
  3. The meme stock phenomenon is broadening and developing, seeing a recent new resurgence, involving more stocks, and with less reliance on stocks with very high short interest ratios (percentage of shares sold ‘short’). Retail investors are also getting some credit for seeing value early in stocks where institutional investors did not, such as the car rental firm Hertz (HTZGQ) which is now exiting bankruptcy with its equity value intact and after a bidding war among investors. 

Retail investors have developed a unique ‘meme stock’ investment strategy, all their own, leveraging a growing online community and new investment tools to invest in smaller, out-of-favour consumer stocks, and to increasingly challenge institutional investors. This is why, we believe, meme stocks are here to stay.

* VanEck Vector Social Sentiment (BUZZ) and Tuttle Capital Fear Of Missing Out (FOMO) ETF’s

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You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.

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US stocks hit a slump

Last Week’s Top Five Market Winners

Nasdaq Stock Market (NASDAQ)

The past week included significant gains for Anavex Life Sciences Corp. (AVXL), MicroStrategy Inc. (MSTR), Monday.com (MNDY), Sunrun Inc. (RUN) and MongoDB Inc. (MDB).

  • Anavex Life Sciences Corp. (AVXL) shares soared when peer-reviewed research on two of the biotech company’s pipeline drugs was published. 
  • Shares of software firm and major Bitcoin holder MicroStrategy Inc. (MSTR) jumped following a tweet by Tesla CEO Elon Musk about the possibility of Tesla accepting Bitcoin in the future.
  • Monday.com (MNDY) shares continued to rise after the workplace management software company’s recent IPO.
  • Sunrun Inc. (RUN) shares popped after Morgan Stanley analyst Stephen Byrd declared the solar panel company the “most compelling clean energy stock.”
  • MongoDB Inc. (MDB) shares jumped after the database expert exceeded Wall Street’s expectations for its first quarter, successfully reaching analysts’ target price.

NASDAQ TOP-PERFORMING STOCKS

STOCKWEEKLY CHANGECURRENT TRADING PRICESECTOR
Anavex Life Sciences Corp. (AVXL)6.64 (+42.84%)22.14Consumer goods
MicroStrategy Inc. (MSTR)130.02 (+25.18%)646.46Technology
Monday.com (MNDY)43.20 (+22.82%)232.51Technology
Sunrun Inc. (RUN)7.75 (+17.24%)52.71Industrial goods
MongoDB Inc. (MDB)49.92 (+14.94%)384.02Technology

New York Stock Exchange (NYSE)

Strong results were recorded on the New York Stock Exchange for Qudian Inc. (QD), Asana (ASAN), AMC Entertainment Holdings Inc. (AMC), Shopify Inc. (SHOP) and HubSpot (HUBS).

  • Shares of Qudian Inc. (QD) jumped after the Chinese technology platform received a significant upgrade by analysts.
  • Shares of software leader Asana (ASAN) surged following a bullish rating by analysts and a stellar Q1 earnings report.
  • AMC Entertainment Holdings Inc. (AMC) stock continued to be popular with Reddit investors following news of voting on the company’s anticipated sale of 25 million shares, which could raise $1.5 billion in funds to help offset debt which the theatre chain had accumulated during the pandemic.
  • Shopify Inc. (SHOP) shares popped when the e-commerce platform announced that its mobile payments technology Shop Pay will be coming to Facebook, Instagram, and Google later this year. 
  • HubSpot (HUBS) shares spiked after analysts predicted that the CRM software leader will report sales of $295.80 million for the current fiscal quarter. 

NYSE TOP-PERFORMING STOCKS

STOCKWEEKLY CHANGECURRENT TRADING PRICESECTOR
Qudian Inc. (QD)0.57 (+27.01%)2.68Financial
Asana (ASAN)11.33 (+24.38%)57.80Services
AMC Entertainment Holdings Inc. (AMC)9.86 (+19.96%)59.26Consumer Goods
Shopify Inc. (SHOP)219.85 (+17.63%)1466.87Technology
HubSpot (HUBS)73.85 (+14.21%)593.53Technology

Last Week’s Top Five Market Losers

Nasdaq Stock Market (NASDAQ)

The last seven days were less than ideal for Urban One Inc. (UONE), CureVac NV (CVAC), Sage Therapeutics Inc. (SAGE), Fossil Group Inc. (FOSL) and Tellurian Inc. (TELL).

  • Urban One Inc. (UONE) shares tanked after a filing by the urban media company which registered 3 million shares for insider sales.
  • CureVac NV (CVAC) shares crashed after the German biotech company reported disappointing late-stage trial results for its COVID-19 vaccine candidate.
  • Sage Therapeutics Inc. (SAGE) shares dropped after the biopharmaceutical company’s disappointing clinical trials of what had been considered a promising treatment for depression.
  • Fossil Group Inc. (FOSL) shares sank after the watch and accessories maker reported a loss of $24.4 million in its first quarter. 
  • Tellurian Inc. (TELL) shares declined after Indian energy firm Petronet shelved its impending deal with the natural gas project developer. 

NASDAQ WORST-PERFORMING STOCKS

STOCKWEEKLY CHANGECURRENT TRADING PRICESECTOR
Urban One Inc. (UONE)-10.74 (-52.19%) 9.84Services
CureVac NV (CVAC)-35.88 (-36.68%)61.94Healthcare
Sage Therapeutics Inc. (SAGE)-22.23 (-28.10%) 56.88Consumer Goods
Fossil Group Inc. (FOSL)-3.27 (-20.93%)12.35Consumer Goods
Tellurian Inc. (TELL)-0.86 (-18.18%)3.87Consumer Goods

New York Stock Exchange (NYSE) 

On the New York Stock Exchange, Blue Apron Holdings Inc. (APRN), TAL Education Group ADR (TAL), United States Steel Corp. (X), New Oriental Education & Techn ADR (EDU) and Kinross Gold Corp. (KGC) stocks all experienced negative movement over the past week.

NYSE WORST-PERFORMING STOCKS

STOCKWEEKLY CHANGECURRENT TRADING PRICESECTOR
Blue Apron Holdings Inc. (APRN)-1.94 (-31.80%)4.16Consumer Goods
TAL Education Group ADR (TAL)-6.85 (-23.43%)22.38Consumer Goods
United States Steel Corp. (X)-5.95 (-20.76%)22.71Basic Materials
New Oriental Education & Techn ADR (EDU)-1.95 (-20.44%)7.59Consumer Goods
Kinross Gold Corp. (KGC)-1.39 (-17.80%)6.42Basic Materials

Highlights and Lowlights

After a three-week optimistic, if modest, upward trend, all three major US indexes were in the red this past week. The DJ30 fared the worst, dropping 3.4% — its largest weekly decline in nearly eight months — while the SPX500 also reversed course, falling 1.9% and the NSDQ100 dipped 0.3%.

A revised outlook issued by the US Federal Reserve dampened investors’ moods, negatively affecting stocks and other markets. Policy makers hinted that they expect to raise interest rates by late 2023 — sooner than previously estimated — and raised their inflation forecast as well.

What’s in Store for the Week?

Reports on existing and new home sales will be released on Tuesday and Wednesday, respectively, in addition to weekly mortgage application statistics. US consumer sentiment and expectations for June will be reported on Friday, which are now in the shadow of the Fed’s revised projections on inflation.

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You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.

Past performance is not an indication of future results.
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Bitcoin falls 15% on inflation bombshell

Crypto sinks with stocks as the Fed acknowledges inflation

Bitcoin has fallen 15% over the last week as the market weighs the impact of big shifts in the crypto ecosystem and broader macro environment.

On Wednesday, Fed chairman Jerome Powell acknowledged rising inflation, and responded by bringing forward the timing of the next interest rate hike to 2023. This spooked stocks and crypto, with the S&P 500 and Bitcoin tumbling together for the remainder of the week.

Adding to the uncertainty, crypto mining firms are exiting China and billionaire investor Mark Cuban has fallen victim to a collapsing DeFi protocol. Prices across the market reflect this poor sentiment, and major altcoins including XRP and Ethereum are showing double-digit weekly losses.

This Week’s Highlights

  • Panama and Paraguay look to follow El Salvador
  • China steps up mining crackdown

Panama and Paraguay look to follow El Salvador

As Latin American leaders reflect on Bitcoin adoption in El Salvador, politicians in Panama and Paraguay are already proposing to make cryptocurrency legal tender in their own countries.

In Panama, opposition politician Gabriel Silva wants to make the country “a true hub of technology and entrepreneurship” by adopting Bitcoin with a bill set to be unveiled in July.

Paraguayan congressman Carlitos Rejala plans to present a similar Bitcoin bill, and local companies are already supporting the initiative: the country’s largest entertainment firm Grupo Cinco said last week it will start accepting cryptocurrencies in July.

China steps up mining crackdown

In what is being dubbed “the great mining migration”, more than half of China’s Bitcoin miners are fleeing the country as officials order mining operations to shut down.

The rise in miners leaving the country comes as recent enforcement efforts extend to Sichuan province, which is thought to be the largest mining hub in China thanks to an abundant supply of hydroelectricity.

Though the crackdown is creating uncertainty as hashrate falls, many miners are now looking to settle in Western jurisdictions. This is likely to be positive for the network in the long-term as it makes mining more decentralized—disarming critics who have pointed towards the centralization of mining in China.

The week ahead

After four weeks of sideways price action since the crash of mid-May, traders are now eagerly awaiting a breakout to indicate the direction of future momentum.

While mining uncertainty and macroeconomic woes could continue to hold prices down this week, MicroStrategy CEO Michael Saylor might be adding buying pressure. He filed to issue $1 billion worth of shares last Monday to raise funds for more Bitcoin.

On Friday, volatility could come to a head as a record number of Ethereum options contracts are set to expire.

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You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.

Past performance is not an indication of future results.
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S&P 500 tops previous record

Last Week’s Top Five Market Winners

Nasdaq Stock Market (NASDAQ)

The past week included significant gains for Urban One Inc. (UONE), Evofem Biosciences Inc. (EVFM), Biogen Inc. (BIIB), Monday.com (MNDY) and Marqeta Inc. (MQ).

  • Urban One Inc. (UONE) shares continued to soar amid investor anticipation of Juneteenth, which celebrates the emancipation of slaves in the US, following the minority-owned multimedia company’s run-up last year. 
  • Evofem Biosciences Inc. (EVFM) shares jumped following bullish analysis reports, including news that Morgan Stanley had purchased a stake in the women’s health biopharmaceutical company.
  • Biogen Inc. (BIIB) shares soared nearly 50% in a single trading session after the Food and Drug Administration (FDA) approved the biotech company’s controversial Alzheimer’s drug. 
  • Monday.com (MNDY) kicked off its initial public offering (IPO) to strong investor demand, which resulted in shares of the workplace management software company skyrocketing.
  • Marqeta Inc. (MQ) also had a successful trading debut, which saw shares of the payments infrastructure company surge more than 30% above their IPO price.

NASDAQ TOP-PERFORMING STOCKS

STOCKWEEKLY CHANGECURRENT TRADING PRICESECTOR
Urban One Inc. (UONE)7.52 (+57.58%)20.58Services
Evofem Biosciences Inc. (EVFM)0.3846 (+44.44%)1.25Consumer goods
Biogen Inc. (BIIB) 110.50 (+38.62%)396.64Healthcare
Monday.com (MNDY)49.31 (+35.22%)189.31Technology
Marqeta Inc. (MQ)7.50 (+31.25%)31.50Financial

New York Stock Exchange (NYSE)

Strong results were recorded on the New York Stock Exchange for Signet Jewelers Ltd. (SIG), Cleveland-Cliffs Inc. (CLF.US), Blue Apron Holdings Inc. (APRN), Asana (ASAN) and Covanta Holdings (CVA).

  • Shares of Signet Jewelers Ltd. (SIG) skyrocketed after the specialty retail jeweler released first-quarter fiscal 2022 financial results.
  • Cleveland-Cliffs Inc. (CLF.US) shares surged as Reddit investors jumped on the steel mill and iron ore supplier stock, possibly tied to a rise in iron ore prices.
  • Blue Apron Holdings Inc. (APRN) shares were up, registering a 6-day streak of gains for the meal kit delivery company.
  • Asana (ASAN) shares popped after the workplace management specialist’s President, CEO, & Chair Dustin A. Moskovitz bought $17.4 million worth of stock.
  • Covanta Holdings (CVA) shares spiked on rumours that the waste management company was being pursued by several potential buyers.

NYSE TOP-PERFORMING STOCKS

STOCKWEEKLY CHANGECURRENT TRADING PRICESECTOR
Signet Jewelers Ltd. (SIG)15.88 (+26.97%)74.75Services
Cleveland-Cliffs Inc. (CLF.US)4.57 (+23%)24.44Basic Materials
Blue Apron Holdings Inc. (APRN)0.97 (+18.91%)6.10Consumer Goods
Asana (ASAN)7.28 (+18.58%)47.76Services
Covanta Holdings (CVA)2.75 (+18.46%)17.65Utilities

Last Week’s Top Five Market Losers

Nasdaq Stock Market (NASDAQ)

The last seven days were less than ideal for Curis Inc. (CRIS), Ocugen Inc. (OCGN), Canaan Inc. (CAN), Gogo Inc. (GOGO) and CureVac NV (CVAC).

  • Curis Inc. (CRIS) shares tanked after the cancer drug specialist reported some worrisome news about clinical trials of its leading pipeline drug.
  • Ocugen Inc. (OCGN) shares crashed after the biotech company announced that it was no longer pursuing  Emergency Use Authorisation (EUA) for its Covaxin coronavirus vaccine candidate.
  • Canaan Inc. (CAN) shares dropped due to continued uncertainty about the cryptocurrency mining company’s revenues.
  • Gogo Inc. (GOGO) shares dropped after the in-flight Wi-Fi provider’s CAO sold over $96,000 in stock.
  • CureVac NV (CVAC) shares declined after a week of growing worry around the delayed progress of the German biotech company’s Covid-19 vaccine.

NASDAQ WORST-PERFORMING STOCKS

STOCKWEEKLY CHANGECURRENT TRADING PRICESECTOR
Curis Inc. (CRIS)-4.67 (-36.83%) 8.01Consumer Goods
Ocugen Inc. (OCGN)-2.38 (-27.29%)6.34Consumer Goods
Canaan Inc. (CAN)-2.25 (-20.51%) 8.72Technology
Gogo Inc. (GOGO)-2.74 (-19.12%)11.59Services
CureVac NV (CVAC)-18.29 (-15.75%)97.82Healthcare

New York Stock Exchange (NYSE) 

On the New York Stock Exchange, CVR Energy (CVI.N), Louisiana-Pacific Corp (LPX), United Natural Foods Inc. (UNFI), Caterpillar (CAT) and Semrush Holdings Inc. (SEMR) stocks all experienced negative movement over the past week.

  • CVR Energy (CVI.N) shares plummeted when the petroleum refiner’s plans to make a special distribution of cash and stock related to its investment in Delek US Holdings, announced last month, took effect.
  • Shares of building products manufacturer Louisiana-Pacific Corp (LPX) and construction machinery giant Caterpillar (CAT) slid along with a general downward trend in the construction sector.
  • United Natural Foods Inc. (UNFI) shares tumbled after the natural foods wholesaler posted disappointing third-quarter earnings as compared to last year, when sales had spiked amid COVID-19 lockdowns.
  • Semrush Holdings Inc. (SEMR), whose shares plunged by nearly 20% on the digital marketing tools provider’s first day of trading nearly two months ago, dipped once again.

NYSE WORST-PERFORMING STOCKS

STOCKWEEKLY CHANGECURRENT TRADING PRICESECTOR
CVR Energy (CVI.N)-3.97 (-17.26%)19.03Basic Materials
Louisiana-Pacific Corp (LPX)-6.60 (-10.12%)58.61Industrial Goods
United Natural Foods Inc. (UNFI)-3.89 (-9.90%)35.41Services
Caterpillar (CAT)-23.32 (-9.56%)220.70Industrial Goods
Semrush Holdings Inc. (SEMR)-1.86 (-9.46%)17.80Technology

Highlights and Lowlights

The major US indexes continued to hover near previous highs, with the SPX500 rising 0.4% to break its previous record on Thursday. The DJ30 retreated a modest -0.8%, while NSDQ100 outperformed both of its peers with a 1.9% gain for the week.

New unemployment benefits claims fell to the lowest level recorded since the pandemic. The weekly index showing consumer sentiment was higher than expected as optimism about future economic growth and employment grows.  

What’s in Store for the Week?

Inflation is likely to be the foremost concern for investors as Fed policymakers hold a two-day meeting this coming week, wrapping up on Wednesday. Although the Fed is expected to keep benchmark interest rates unchanged, the recent rise in consumer prices could still warrant a tightening of other monetary policies.

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You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.

Past performance is not an indication of future results.
General Risk Disclosure | Terms & Conditions

Bitcoin bounces as Elon adds to El Salvador optimism

While altcoins bleed, Bitcoin moves in on $40K

Bitcoin is bouncing back. The crypto king has reclaimed its throne, and is closing in on $40K as the altcoin market stagnates.

El Salvador’s approval of Bitcoin as legal tender on Thursday could be credited with the turnaround, boosting market sentiment and sparking a wave of interest from politicians across Latin America. Then on Sunday, Twitter trickster Elon Musk aided the recovery, claiming once again that “Tesla only sold around 10% of holdings to test liquidity” and that the car company will allow Bitcoin transactions again when miners have improved their green credentials.

Trailing behind, little brother Litecoin is one of the only altcoin winners of the week with 5% gains. Ethereum is down 3%, and DeFi tokens Chainlink and Uniswap are making a slow recovery with 4% weekly losses.

This Week’s Highlights

  • Latin American leaders get laser eyes
  • Global banking regulator calls for new crypto rules

Latin American leaders get laser eyes

El Salvador’s announcement that it will make Bitcoin legal tender seems to have started a trend.

A handful of politicians in neighboring countries — from Panama to Paraguay — have added laser eyes to their Twitter profiles to show support for Bitcoin initiatives that could help their nations attract technology startups.

In the U.S., Texas Governor Greg Abbott signed a law this week that gives state-chartered banks the greenlight to custody crypto assets. This rising acceptance runs against comments from Senator Elizabeth Warren, who recently lambasted Bitcoin for the supposed environmental cost.

Global banking regulator calls for new crypto rules

Bitcoin prices were bolstered mid-week by an announcement from the Basel Committee of the Bank for International Settlements.

The global regulator, which sets international banking standards, proposed the first ever set of rules for banks to hold crypto; suggesting strict capital requirements to accommodate the risks of volatility.

Bitcoin jumped $2K on the news, reflecting excitement about the broader acceptance of cryptoassets in the traditional financial ecosystem.

The week ahead

The sudden upswing could indicate that Bitcoin is ready to cast off the shackles of the recent sideways trend.

Yet the market sentiment indicator is still flashing fear, and some American bookmakers are now putting the odds for Bitcoin dropping to $10K this year at almost 60%.

This week, MicroStrategy CEO Michael Saylor is expected to be hitting the Bitcoin buy button after raising another $500M in convertible notes.

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You should seek advice from an independent and suitably licensed financial advisor and ensure that you have the risk appetite, relevant experience and knowledge before you decide to trade. Under no circumstances shall ADR Investors or eToro have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever. Trading with ADR Investors via eToro by following and/or copying or replicating the trades of other traders involves a high level of risk, even when following and/or copying or replicating the top-performing traders. Such risks includes the risk that you may be following/copying the trading decisions of possibly inexperienced/unprofessional traders, or traders whose ultimate purpose or intention, or financial status may differ from yours. Past performance of an eToro Community Member is not a reliable indicator of their future performance. Content on eToro’s social trading platform is generated by members of its community and does not contain advice or recommendations by or on behalf of eToro | Copyright © adrinvestors.com | an eToro partner.

Past performance is not an indication of future results.
General Risk Disclosure | Terms & Conditions

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