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Bitcoin ETF Rejection Report

Bitcoin ETF Rejection Report

And, Cal-Maine's low selling price.

A gold Bitcoin on top of a gold snowflake

Photo by Traxer on Unsplash

Today is Thursday, January 4, 2024.

The Early Bird Index today is 61.97.

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Bitcoin ETF Rejection Report

The price of Bitcoin and other cryptocurrencies fell dramatically on Wednesday following the release of a gloomy report.

Details: Crypto platform Matrixport released a report predicting that the U.S. SEC would reject all applications for a spot Bitcoin ETF (exchange-traded fund) in January.

Background: A spot Bitcoin ETF makes it easier for the average investor to get direct exposure to Bitcoin. Rumors have circled for weeks that the SEC, which had previously rejected these ETFs, would finally approve them in January.

Price: Bitcoin fell 4% on Wednesday. Other cryptocurrencies experienced declines of over 6%.

However: Others say that Bitcoin’s pullback on Wednesday could be attributed to issues with leverage instead of the Matrixport report.

Final Thoughts: If the SEC rejects the spot Bitcoin ETFs, expect further price drops for Bitcoin.

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Notables

Notable Earnings Today: Walgreens Boots Alliance (Nasdaq: WBA), Lamb Weston (NYSE: LW), RPM Inc (NYSE: RPM), Conagra (NYSE: CAG), Lindsay Corp (NYSE: LNN), Simply Good Foods (Nasdaq: SMPL), Radius Recycling (Nasdaq: RDUS), Franklin Covey (NYSE: FC), Kura Sushi USA (Nasdaq: KRUS).

Notable IPOs Today: Tuttle Capital Daily 2X Inverse Regional Banks ETF (Nasdaq: SKRE).

Notable Equity Crowdfunding Campaigns Ending Today: Chubby Cattle (SMBX), Games of Berkeley (SMBX), The Noble Fox (SMBX).

Notable Economic Events Today: ADP Non-Farm Employment Change (8:15 a.m. ET), Jobless Claims (8:30 a.m. ET), S&P Global Services PMI (9:45 a.m. ET), Cushing Crude Oil Inventories (11:00 a.m. ET), Fed's Balance Sheet (4:30 p.m. ET).

Cal-Maine's Low Selling Price

Photo by Jakub Kapusnak on Unsplash

Shares of Cal-Maine Foods (Nasdaq: CALM) fell more than 5% in after-hours trading on Wednesday after egg producer reported bad financial results.

Financials: Cal-Maine reported earnings of 35 cents per share in the past quarter and revenue of $523.2 million; both were below estimates.

Details: Sales for Cal-Maine are down from last year due to lower selling prices for eggs.

Final Thoughts: While Cal-Maine is up 21% in the last 6 months, these results are troubling.

Healthcare Sector Eyes 2024 Comeback

Healthcare stocks want to rally despite a mostly awful year in the sector.

Details: While healthcare stocks struggled in 2023, a few stood out due to the emergence of popular weight-loss drugs. Novo Nordisk (NYSE: NVO), the maker of Ozempic, jumped 50% in 2023. Eli Lilly (NYSE: LLY), which also has weight-loss drugs, increased by 59%.

Zooming Out: Large pharmaceutical companies dropped in 2023 as traditional treatments for diabetes and obesity lost steam. Johnson & Johnson (NYSE: JNJ) declined by over 10%. Pfizer (NYSE: PFE) plummeted by 40%.

Details: Because of these declines, many healthcare stocks now offer good valuations. Combined with dividends, these stocks could provide an interesting opportunity.

Final Thoughts: It may be tough to get excited about healthcare in this current environment, but long term the stocks are promising.