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- š§Ŗ Inflation Cools, Bitcoin Rules
Good Morning!
Let's dive into this week's action-packed edition. First up, US markets are getting a breather with inflation showing signs of cooling off ā finally, some good news for your portfolios. But, not everything's rosy. Over in the world of IPOs, Reddit is about to hit the market, but its loyal user base? Not thrilled. Guess even the front page of the internet has its drama.
In crypto-land, Bitcoin just blasted past $63K, a high we haven't seen since November 2021. Talk about a comeback story! Over in the tech sector, Snowflake's shares have nosedived a whopping 20% after CEO Frank Slootman waved goodbye, leaving investors in a bit of a cold front with weak guidance.
Letās get into it š
š” Market Temperature Check
US stocks got a nice lift on Thursday as inflation showed signs of chilling out, sparking talk of a rate cut sooner than we thought. By mid-morning in the Big Apple, the Dow nudged up 0.16%, the S&P 500 climbed 0.44%, and the Nasdaq jumped 0.82%. Inflation's playing ball, inching up as expected in January, but here's the kicker - it's the smallest yearly jump in almost three years.
So yeah, keep an eye out, because the Fed might just slice those rates as early as June. This is the kind of stuff that gets us traders buzzing!
š¢ Todayās Biggest Movers
(+) Advanced Micro Devices, Inc. ($AMD) +7% after ramping up AI chip production.
(+) Super Micro Computer Inc ($SMCI) +5% due to BoA naming it a ātop AI stockā.
(-) Snowflake Inc. ($SNOW) -20% after forecasts dip below expectations and CEO retires.
(-) Anheuser-Busch InBev SA/NV ($BUD) -4% despite better-than-expected earnings.
š Market Pulse
Reddit, the giant that runs on the fuel of unpaid mods, just posted a $91 million net loss for 2023. But hold onto your hats, because while these volunteer mods are grinding away for free, Reddit's CEO, Steve Huffman, cashed in a whopping $193 million! That's almost 20% of their $804 million revenue. Talk about imbalance!
This has riled up the Reddit communities big time ahead of itsā IPO. They're the backbone of the platform, yet they're seeing their efforts line the pockets of the big boss while the company itself is in the red. And remember, these are the same folks who played David to Goliath by tanking a $7.8 billion hedge fund over GameStop (GME), their beloved meme stock. Huffman's payday amidst financial turmoil? That's not sitting well with the crowd.
Bitcoin's on fire! It just soared past $63,000 for the first time since its peak back in November 2021. We're talking a massive rally here, and the timing's no coincidence. This surge aligns perfectly with a flood of cash into U.S.-traded spot ETFs. We've seen these funds snap up over 22,000 bitcoins in just two days. And get this - the bitcoin halving is just around the corner in April. That's when the new bitcoin issuance slows down, and historically, it's been like pouring gasoline on Bitcoinās price rally.
But hey, here's something you might not know. Our private indicator at TradingLab called out a buy signal for Bitcoin at $30,000. Yep, you read that right. For those who followed, this was a golden ticket in this rally. Curious about how you can get access to such exclusive insights? Learn more here.
Bitcoinās been on a wild ride for months, jumping from below $51,000 to over $63,000 in a heartbeat. And with this momentum, it's eyeing its record high of $69,045. Bitcoin bulls arenāt just watching the charts; they're probably throwing a party.
In today's market drama, Snowflake Inc. (SNOW) took a steep dive, plummeting 20% in Thursday's morning trading. This comes right on the heels of their CEO, billionaire Frank Slootman, announcing his retirement. Talk about timing! But that's not the only thing shaking investors. The cloud software giant also dished out their fourth-quarter earnings, which apparently didn't sit well with the market. Plus, their first-quarter outlook? Let's just say it wasn't exactly what Wall Street was hoping for.
The reaction from the big guns in analysis was mixed. Morgan Stanley wasn't feeling too optimistic, downgrading Snowflake's stock from 'overweight' to 'equal weight' and slashing their price target. But here's where it gets interesting: Macquarie Equity Research is taking a different bet. They see Slootman's exit as the golden opportunity they've been waiting for, upgrading the stock to 'outperform' and even bumping up their price target. So, while some see doom and gloom, others are spotting a silver lining in Snowflake's cloudy day.
šø Forex Focus
The USDJPY trading pair took a bit of a tumble this week. This came right after Bank of Japan board member Hajime Takata hinted that the days of easy-money policies in Japan might be winding down. The pair dropped about 110 pips or 0.7%, sliding from Ā„150.70 to near Ā„149.60. Before this, the dollar was just cruising along against a weaker yen.
Here's the lowdown: Takata's suggesting it's time for the Bank of Japan to rethink its negative interest rates and maybe say sayonara to the longstanding easy-money policy. And guess what? He's even hinting that an exit from this policy could be coming up. Analysts are eyeing April for potential signs of this policy shift. If they're right, the yen, which has been under the dollar's thumb for a while, might just get a boost. So far this year, the greenback has gained over 6% against the yen.
Stay ahead, stay informed, and most importantly, stay profitable.
ātil next time,
TradingLab
