S&P 500 Index Can't Be Trusted
Plus, Signature Bank shuts down.
Today is Monday, March 13, 2023.
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S&P 500 Index Can't Be Trusted
The S&P 500 Index (INDEXSP: .INX) should not be a leading economic indicator, says BRON Network Founder Tom Samuelson in a new episode of the Early Bird podcast.
Details: Why is the S&P not a trusted indicator? Samuelson points to liquidity issues and volatility in the market at certain times of the day, which he says might be attributed to manipulation from big players.
Also: Samuelson said that investors should not make trading decisions based on volatile movements from the S&P and other top indexes.
What’s Ahead: While Samuelson thinks that 2023 could be a better year for investors than 2022, he’s not sure how much the market could go up, especially if there’s a recession.
Final Thoughts: What kind of stocks does Samuelson recommend for investors? Find out by listening to a new episode of the Early Bird podcast.
Notable Earnings Today: ZIM Integrated Shipping Services (NYSE: ZIM), GitLab (Nasdaq: GTLB), Benson Hill (NYSE: BHIL), BigBear.ai Holdings (NYSE: BBAI), Lightning Emotors (NYSE: ZEV), Getty Images Holdings (NYSE: GETY), Turtle Beach (Nasdaq: HEAR), Eagle Pharmaceuticals (Nasdaq: EGRX), BuzzFeed (Nasdaq: BZFD), Inspired Entertainment (Nasdaq: INSE), RF Industries (Nasdaq: RFIL), Whole Earth Brands (Nasdaq: FREE), Sight Sciences (Nasdaq: SGHT), Bluegreen Vacations Holding (NYSE: BVH), Avid Bioservices (Nasdaq: CDMO), Gracell Biotechnologies (Nasdaq: GRCL), Oportun (Nasdaq: OPRT), OneConnect Financial Technology (NYSE; OCFT), Westport Fuel Systems (Nasdaq: WPRT).
Notable IPOs Today: EA Bridgeway Omni Small-Cap Value ETF (Nasdaq: BSVO).
Notable Equity Crowdfunding Campaigns Ending Today: The Coffee Class (StartEngine), Harmony Turbines (StartEngine), REVO Powertrains (StartEngine).
Notable Economic Events Today: N/A.
Signature Bank Closes, But Feds Step In
Another bank was closed by regulators on Sunday, this time Signature Bank (Nasdaq: SBNY), two days after Silicon Valley Bank (Nasdaq: SIVB) collapsed.
Details: Last week, a liquidity crunch forced Silicon Valley Bank to attempt to raise cash. The news spooked customers, resulting in a bank run. The Feds then shut down the bank on Friday, the largest collapse of a bank since 2008.
Also: On Sunday, bank regulators announced a plan to protect all deposits at Silicon Valley Bank and Signature Bank.
Final Thoughts: It's great that federal officials are stepping in and protecting the depositors of these banks. For investors, there are some big concerns that this collapse could spread to other financial institutions. As since so many tech companies depend on Silicon Valley Bank, this could impact tech stocks as well. With more questions than answers at this time, it might be an opportunity for investors to pump the brakes until these issues get resolved.
Crypto Surges Thanks to Bank Deal
The decision by federal regulators on Sunday to back bank deposits caused cryptocurrency prices to surge.
Details: Bitcoin and Ethereum surged by 9% on Sunday. Cardano went up by 11%. Avalanche went up by 12%. Aptos increased by 14%.
But: Sunday’s surge follows days of decline. The bank collapses really sent a negative message to crypto investors.
Final Thoughts: Does Sunday’s sudden surge mean that everything is good in the crypto world? No, because crypto is still volatile, but there’s now some hope that crypto can continue its 2023 revival.
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Trends to Watch
Battle: Carl Icahn Prepares for Proxy Fight at Illumina (The Wall Street Journal)
Winding Down: Investors Call Time on Australian Rate Hikes in Wake of SVB (Bloomberg)
Ticking Time Bomb: US banks sitting on unrealized losses of $620 billion (CNN)
Balancing Act: The Fed is hiking interest rates to tame inflation even at the risk of recession. But can it? (USA Today)
Not Happening: PNC decides not to bid on Silicon Valley Bank as regulators struggle to find rescue buyers, source says (CNBC)
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