June CPI data came in up 5.4% year over year. This may not be high enough for the Fed to consider tapering faster or more aggressive than what the market currently expects. Investors seem to be in a “wait and see” posture when it comes to economic data and the Fed.
Highlights From This Week’s Earnings
COIN - Coinbase is in the midst of a monster crypto rally. COIN reported earnings on Tuesday evening. Some highlights that we found interesting were:
- COIN reported a 38% jump in trading volumes from the previous quarter
- Trading volumes of $462 billion in the second quarter
- During the First quarter 2021 Bitcoin was 39% of Coinbases trading volume and that number declined to 24% in the second quarter.
- The company provided current quarter (third) guidance and said that trading volumes were trending lower than the second quarter. However the company also stated that August volumes are better compared to July.
BTC Smashes Past $40k Once Again
Many coins experienced a strong rally this week. Bitcoin seems to have broken out of the $40,000 range. The last time BTC traded below $40,000 was a week ago on August 6th. ETH looks to have had a good couple of weeks. At the start of August ETH was at $2,530.46 and traded up to over $3,200 several days this week.
US Senate Passes Bipartisan $1T Infrastructure Bill
In the latest sign of the apocalypse there was a bill passed in the Senate with Bipartisan support. This bill was the culmination of months of negotiations between Republican and Democratic Senators. The bill faces an uncertain path in the house and there is no guarantee that the bill will make it to the Oval Office to be signed into law. Some highlights include $65 billion for investment in the nation’s broadband infrastructure, $5 billion in electric school busses, $7.5 billion to build a network of plug in Electric Vehicles (EV) chargers, $40 billion for bridge repair and bridge replacement, $17 billion for port infrastructure, $25 billion for airports, $65 billion to rebuild the electric grid, $55 billion to upgrade water infrastructure and $21 billion for Environmental remediation
Oracle of Omaha Continues to Dump Stocks
Berkshire Hathaway (BRK.B) reported earnings last Friday evening and a key takeaway was that the Oracle of Omaha was a net seller of stocks for the third quarter in a row and the company repurchased $6 billion worth of its stock in the quarter. This is the lowest quarterly amount since mid 2020.
Meme Stock AMC Reports Q2 Revenue Above Forecast
AMC Entertainment Holdings (AMC) reported earnings after the close on Monday. AMC reported revenue above forecast for the second quarter. In what can be described as a volatile couple of days of trading in AMC it initially traded up over 37 in trading early Tuesday only to see it close down 14% from the intraday high at 31.44 Tuesday at 4pm ET. On Wednesday the volatility continued and AMC traded briefly with a 29 handle twice before closing at 31.55. By the way, you will soon be able to buy movie tickets and concessions with bitcoin at AMC later in the year.
NIO 2X Vehicle Deliveries to Compete Against TSLA
Nio Inc (NIO) reported earnings on Wednesday evening. The company doubled vehicles delivered in the quarter compared to the same time last year. Nio has been focused on the top end of the EV market, but will not create a new brand that will focus on mass market consumers. Revenue for the quarter came in at 8.45 billion compared to analyst estimate of 8.29 billion yuan. NIO can be seen as an established competitor to Tesla (TSLA).
About the Writer
My name is Allen Spence and I have been working in the retail brokerage industry for over 16 years. I joined Alpaca in March of 2021 as a Brokerage Operations Consultant. Before joining Alpaca I have worked in a retail branch environment, call center for active traders, and spent over seven and a half years as the team lead on an equity trading desk for a large regional broker dealer. I’m excited to be at Alpaca helping bring the markets to investors worldwide. I live in Florida and enjoy traveling and spending time with my family.
Alpaca is a globally distributed financial technology company that is democratizing global access to financial markets starting with our API-first stock brokerage. Alpaca offers commission-free stock trading via API, a suite of developer APIs for brokerages, advisors, and startups, as well as a market data API.
This article is solely for informational purposes only and any historical returns, expected returns or projections are hypothetical in nature. Investments in securities involve the risk of losses and past performance does not guarantee future results. Before investing you should carefully consider your investment objectives, time horizon, and overall risk tolerance as well as the information stated in the product offering prospectuses.
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