Today is Tuesday, March 29, 2022.
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Bitcoin Now Positive for 2022
The price of Bitcoin jumped about 2% Monday, resulting in the cryptocurrency finally going positive for 2022.
Numbers: Between Friday and Monday, the price of Bitcoin increased by 7%. It reached a 2022-high price of $48,000 at one point on Monday before ticking down.
Background: It’s been a rough 2022 for most cryptos. In particular, Bitcoin entered the year at around $46,000 and dipped as low as $34,000 in January. The price has since gone back up.
Big Picture: What’s remarkable about Bitcoin’s sudden resurgence is that it is surviving other economic headwinds, including inflation and the war in Europe.
Support: While there wasn’t a clear catalyst for the recent surge in price, a few major United States banks have thrown their support behind Bitcoin in recent weeks.
Final Thoughts: Even though Bitcoin may be headed towards a positive return in 2022, many other cryptos are still not there yet.
Notable Earnings Today: Lululemon Athletica (Nasdaq: LULU), Micron Technology (Nasdaq: MU), Academy Sports & Outdoors (Nasdaq: ASO), McCormick (NYSE: MKC), Sundial Growers (Nasdaq: SNDL), Conn's (Nasdaq: CONN), Lovesac (Nasdaq: LOVE), RH (NYSE: RH), Elbit Systems (Nasdaq: ESLT), Chewy (NYSE: CHWY), Sportsman's Warehouse Holdings (Nasdaq: SPWH), Better Choice (NYSEAMERICAN: BTTR), PVH (NYSE: PVH), Berkshire Grey (Nasdaq: BGRY), Nabriva Therapeutics (Nasdaq: NBRV), Comstock Mining (NYSEAMERICAN: LODE), Microvast Holdings (Nasdaq: MVST), Safe T Group (Nasdaq: SFET), Cal-Maine Foods (Nasdaq: CALM), Infinity Pharmaceuticals (Nasdaq: INFI), Kala Pharmaceuticals (Nasdaq: KALA), Progress Software (Nasdaq: PRGS), Solo Brands (NYSE: DTC), Verint Systems (Nasdaq: VRNT), Zovio (Nasdaq: ZVO).
Notable IPOs Today: N/A.
Notable Equity Crowdfunding Campaigns Ending Today: Smart Tire Recycling (StartEngine), Skeptic Distillery (StartEngine).
Notable Economic Events Today: Consumer confidence index (10:00 a.m. ET), JOLTs Job Openings (10:00 a.m. ET), API Weekly Crude Oil Stock (4:30 p.m. ET).
FedEx CEO Steps Down
Shares of FedEx (NYSE: FDX) jumped 2.04% in after-hours trading on Monday after the transportation giant announced that Chairman and CEO Fred Smith is stepping down and becoming executive chairman.
Details: Raj Subramaniam, president and chief operating officer, will be promoted to President and CEO. The change will occur on June 1.
Background: Smith founded FedEx over 50 years ago and grew the company to its current position.
Quote: “As we look toward what’s next, I have a great sense of satisfaction that a leader of the caliber of Raj Subramaniam will take FedEx into a very successful future.” - Fred Smith, CEO of FedEx.
Final Thoughts: It’s been a solid few months for FedEx. Shares are up about 4% in the past six months.
Bank Stocks Will Be Under Pressure If the Yield Curve Flattens
As we see a flattening yield curve, which means there is no discernible change in rates between short-term and long-term bonds, bank stocks may be under attack.
Margins: A flat yield curve generally means that financial institutions see their loan margins drop. This could challenge the overall net interest margins for banks.
Numbers: It’s been a slow start for the year in banking. The Dow Jones U.S. Banks Index, which tracks major bank stocks, is already slightly down for the year so far. Of course, things could turn around later in the year.
Final Thoughts: As a general rule of thumb, it’s not a good idea for investors to look at the flattening yield curve in order to time the market. But banks in this climate tend to not perform well.
Trends to Watch
Split Mania: Tesla adds to wave of megacap stock splits (Reuters)
Oil the Wrong Reasons: Oil prices drop as China lockdowns prompt demand worries (Financial Times)
Hype: Ethereum is approaching the ‘merge’ and crypto investors are having major FOMO (Fortune / Yahoo!)
Up in Smoke: Walmart Stops Selling Cigarettes in Some Stores (The Wall Street Journal)
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