News
Bitcoin Plummets From All-Time High; Tech Drags Down Indexes
Equity Indexes Wrap: Mag Seven (Minus Nvidia) Weighs on Indexes; Discount Retailers, Energy Gain
March 05, 2024 04:13 PM EST
The Dow
Walmart (WMT) gained 1.2% after competitor Target reported better-than-expected earnings.
Intel (INTC) led the index lower, falling 5.4%. It was followed by tech peers Salesforce (CRM), down 5%, and Microsoft (MSFT), down 3%. Amazon (AMZN) shed 2%.
Apple (AAPL) fell 2.8% after a report suggested iPhone sales in China fell 24% year-over-year in the first six weeks of the year.
The S&P 500
Target (TGT) soared 12% after its quarterly earnings topped Wall Street estimates.
Dialysis provider DaVita (DVA) gained 7.1% after data showed Novo Nordisk’s (NVO) Ozempic was a less effective treatment for kidney disease than analysts had expected.
Regional bank stocks advanced. Citizens Financial Group (CFG) rose 5.2%, Zions Bancorp (ZION) advanced 4.5%, and Comerica (CMA) gained 3.8%.
Nvidia (NVDA) was the only stock in the Magnificent Seven to rise on Tuesday. It rallied the last 30 minutes of the session to close 0.9% higher.
Albemarle (ALB) plummeted 17.9% after it announced a $1.75 billion depositary shares offering as it seeks to weather a prolonged slump in lithium demand and prices.
Meta Platforms (META) slipped 1.5% amid widespread Facebook, Instagram, and Threads outages.
Advanced Micro Devices (AMD) ticked down 0.1% after the Commerce Department said the chip maker would still need a license to sell to China a semiconductor that was specially designed to meet U.S. export controls.
The Nasdaq 100
Energy stocks advanced as investors shunned growth in favor of value. Baker Hughes (BKR) added 2.5% and Diamondback Energy (FANG) rose 0.7%.
Dollar Tree (DLTR) gained 1.8% after Guggenheim raised its price target to $170 from $155 and reiterated its buy rating.
The index’s highest-flying tech stocks were some of its largest losers on Tuesday. MongoDB (MDB), up more than 80% in the past year, fell 7.7% while CrowdStrike Holdings (CRWD), which has seen its share price more than double in the last 12 months, tumbled 5.2%.
Tesla (TSLA) fell 3.9% after a suspected arson forced it to halt production at its Berlin factory.
Starbucks (SBUX) dipped in the market sell-off even though a coalition of unions representing its workers withdrew its board nominees, citing progress in negotiations.
GitLab Stock Plunges After Issuing Disappointing FY Earnings Guidance
March 05, 2024 03:30 PM EST
GitLab (GTLB) shares plunged Tuesday after the software infrastructure company disappointed investors with weak full-year earnings guidance.
The San Francisco-based company, which operates an open-source repository development platform for coders, said it expects full-year fiscal 2025 adjusted earnings of between 19 and 23 cents per share, with the high end of that forecast coming in significantly below Wall Street’s modeling of 35 cents a share.
For the fiscal 2024 fourth quarter, ending Jan. 31, the company disclosed adjusted earnings of 15 cents per share on revenue of $163.8 million, surpassing analysts’ expectations of 8 cents a share on sales of $157.9 million.
Source: TradingView.com.
GitLab shares have carved out a textbook inverse head and shoulders pattern over the past 18 months—a chart formation that often signals a market bottom. However, the price looks set to break down below the pattern’s neckline after the company’s disappointing earnings outlook.
Investors should keep an eye on the $57.50 level, which may find support from a trendline connecting the formation’s head and right shoulder. A close below the right shoulder would invalidate the pattern and could lead to a retest of the stock’s record low at $26.24 set in May last year.
GitLab shares were down 20.5% at $59.21 with about half an hour left in the session.
Albemarle Tumbles on $1.75 Billion Depositary Shares Offering
March 05, 2024 02:43 PM EST
Shares of lithium miner Albemarle (ALB) plummeted Tuesday after the company said it would sell $1.75 billion of depositary shares in a public offering as it seeks to weather a prolonged slump in lithium prices.
Each depositary share will represent a 1/20th interest in a share of preferred stock, and holders of the depositary shares will be entitled to a proportional interest in the rights of preferred stockholders. The terms of the listing also give the offering’s underwriters a 30-day option to purchase up to an additional $262.5 million of depositary shares.
Albemarle said it would use the proceeds for general business purposes, which could include funding the construction and expansion of operations in Australia and China.
Albemarle, one of the world’s largest lithium miners, has struggled with lower lithium prices over the last year amid a slowdown in demand for electric vehicles, which often contain lithium-ion batteries. Prices began plunging in November 2022 as EV demand flagged under the weight of higher interest rates, leading carmakers to scale back their EV ambitions.
On Tuesday, lithium carbonate traded in China at about 108,500 yuan ($15,076) per metric ton, down about 70% from a year ago. And experts see few signs of improvement. Goldman Sachs analysts on Tuesday forecast lithium prices would fall 25% in the next 12 months, suggesting they see lithium slipping as low as $10,000.
SoFi Slumps on Plan To Sell Up To $862.5 Million in Convertible Bonds
March 05, 2024 01:34 PM EST
Shares of SoFi Technologies (SOFI) tumbled 13% Tuesday, after the online financial services provider said it was planning to sell up to $862.5 million in convertible bonds.
Convertible bonds are a fixed-income corporate debt security that pay interest but can also be converted into a predetermined number of common stock or equity shares. SoFi’s share price drop reflects the potential dilution to existing shareholders if the bonds are converted into stock, although SoFi said it will use part of the proceeds to pay for capped call transactions to limit that dilution.
Essentially, it means SoFi will be buying a form of call options on its own stock.
SoFi said it would be offering $750 million in convertible senior notes due in March 2029. In addition, initial investors will have the option to purchase another $112.5 million within a period of 13 days from when the notes are first issued.
SoFi shares were down 14.3% at $7.35 Tuesday afternoon, and are about 26% lower this year.
Dialysis Stocks Soar After Ozempic Kidney Disease Data Disappoints
March 05, 2024 12:50 PM EST
Shares of dialysis companies surged Tuesday after Novo Nordisk (NVO) reported results from a trial of Ozempic as a kidney disease treatment that fell short of some analysts’ expectations.
Novo Nordisk said on Tuesday that Ozempic reduced kidney disease progression and the odds of cardiovascular or kidney death by 24%. The trial, called FLOW, compared outcomes for 3,533 people with type 2 diabetes and chronic kidney disease, who were either given 1 mg injections of Ozempic or a placebo. The trial was ended last October, a year ahead of schedule after preliminary data demonstrated the drug’s efficacy.
The results add to a growing body of evidence that GLP-1 agonists, like Novo’s Ozempic and Wegovy and Eli Lilly’s (LLY) Mounjaro, have uses beyond diabetes treatment and weight loss. In August, Novo published data showing Wegovy reduced patients’ risk of major cardiovascular events by 20%.
The results, however, weren’t quite what analysts and investors were expecting. Novo Nordisk shares were down more than 2.7% Tuesday afternoon, while dialysis providers soared. DaVita (DVA) climbed 7% to $134, while Fresenius Medical Care (FMS) rose more than 11% to nearly $21.
Apple Stock Slips as China iPhone Sales Plunge 24% in First Six Weeks of Year
March 05, 2024 12:18 PM EST
Apple’s (AAPL) sales of iPhones in China, its biggest overseas market, fell by 24% over the first six weeks of this year, according to market research firm Counterpoint.
The data follows Apple’s disclosure last month that its Greater China sales during the fiscal first quarter fell 13%.
The iPhone maker’s market share in China fell to 16% in the first weeks of 2024, falling to fourth place from second place in 2023, when it had a 19% share. Chinese retail giants JD.com, TMall, and Pinduoduo are offering steep discounts on Apple’s iPhone 15 just five months after launch to generate demand.
Apple shares were down 2.7% midday Tuesday. They have lost about 11% of their value so far this year.
Tesla Stock Slides as Arson Halts Production at Berlin Plant
March 05, 2024 10:46 AM EST
Tesla (TSLA) shares slid in early trading on Tuesday after the electric vehicle maker was forced to halt production at its Berlin factory following an arson attack on a nearby electricity pylon.
The fire, which occurred in a field near Tesla’s Gigafactory Berlin-Brandenburg in Grünheide, cut off power to the plant and the surrounding area. The factory was evacuated and workers were sent home.
The attack comes amid local opposition to Tesla’s efforts to expand the factory, its only assembly plant in Europe. Tesla last July filed applications with local authorities to expand the plant, with plans to add a battery testing center and water treatment facilities. Tesla hopes the plant will eventually produce 1 million cars a year, about double its current output.
But it has run into resistance from locals and environmental activists. Late last month, Grünheide residents voted against Tesla’s planned expansion in a non-binding vote. And last week nearly 100 activists set up camp in a forest near the factory that Tesla intends to fell as part of its expansion.
Residents and activists have also expressed concern about the factory’s water consumption and its potential to contaminate the region’s groundwater.
Tesla shares were down about 4.7% at $179.38 as of 10:45 a.m. ET Tuesday. They have lost nearly 28% of their value so far this year.
Target Stock Surges on Q4 Earnings Beat
March 05, 2024 10:12 AM EST
Target (TGT) shares surged in early trading Tuesday as the company posted stronger-than-expected earnings for the fourth quarter of fiscal 2023.
The retail giant reported net income of $1.38 billion, up 57.8% from the fourth quarter of 2022 and well above Target’s own guidance and analyst estimates compiled by Visible Alpha. Earnings per share (EPS) at $2.98 also surpassed estimates as revenue rose 1.7% from a year ago to $31.9 billion, beating projections.
The company said that the higher profit came in part as a result of lower costs and improved inventory management, and outlined plans to introduce a new membership program as part of its Target Circle rewards program.
Shares of Target were up 12.2% at $168.87 Tuesday morning. They’ve gained close to 18% so far this year.
Stocks Making the Biggest Moves Premarket
March 05, 2024 09:18 AM EST
Gains:
- Target Corp. (TGT): Shares of the retailer jumped 8% after it reported fiscal fourth-quarter earnings of $2.98 a share, beating Wall Street’s consensus estimate of $2.41.
- Coinbase Global Inc. (COIN): Shares of the cryptocurrency exchange gained 2% as the price of Bitcoin rose above $68,000 to trade just shy of an all-time high.
- Newmont Corp. (NEM): Shares of the gold miner ticked up 1% as the price of gold continued to climb after hitting a record high yesterday.
Losses:
- Gitlab Inc. (GTLB): Shares of the coding collaboration platform tumbled 22% after it forecast full-year fiscal 2025 earnings of between 19 and 23 cents per share, far less than the 35 cents per share analysts were expecting.
- Tesla Inc. (TSLA): Shares of the electric vehicle maker fell about 3% after it stopped production at its plant outside Berlin amid a suspected arson attack that cut off power to the factory.
- Apple Inc. (AAPL): Shares of the tech giant slid about 2% amid reports iPhone sales in China were 24% lower in the first six weeks of the year than in 2023.
Stock Futures Slip in Premarket Trading
March 05, 2024 08:41 AM EST
Futures contracts connected to the Dow Jones Industrial Average were down about 0.3% in early trading on Tuesday.
S&P 500 futures were also off about 0.3%.
Nasdaq 100 futures traded 0.5% lower about an hour before markets opened.
Bitcoin has surpassed the $63,000 mark for the first time since November 2021. (Chesnot via Getty Images)
Bitcoin has broken above the $63,000 (£49,745) mark for the first time since November 2021, when the digital asset hit its all-time high of over $68,000.
Over the past 24 hours, the value of the largest digital asset by market capitalization has increased by more than 8% to trade at $63,108, at the time of writing.
Learn more: Live Cryptocurrency Prices
The price appreciation was fueled by record inflows into several U.S.-based bitcoin cash exchange-traded funds (ETFs), which were approved in January this year.
A Bitcoin spot ETF is a financial product that investors believe will pave the way for an influx of traditional capital into the cryptocurrency market. Currently, indications are favorable, with fund managers such as BlackRock (BLK) and Franklin Templeton (BEN), after allocating a record $673 million into spot Bitcoin ETFs on Wednesday.
Learn more: Bitcoin’s Success With SEC Fuels Expectations for an Ether Spot ETF
The record allocation surpassed the funds’ first day of launch, when inflows totaled $655 million. BlackRock’s iShares Bitcoin Trust ETF (I BITE) alone attracted a record $612 million yesterday.
Bitcoin Price Prediction
Earlier this week, veteran investor Peter Brandt said that bitcoin could peak at $200,000 by September 2025. “With the push above the upper boundary of the 15-month channel, the target for the current market bull cycle, which is expected to end in August/September 2025, is raised from $120,000 to $200,000,” Brandt said. published on X.
The influx of capital from the traditional financial sphere into Bitcoin spot ETFs is acting as a major price catalyst for the digital asset, but it is not the only one. The consensus among analysts is that the upcoming “bitcoin halving” could continue to drive flows into the bitcoin market.
The Bitcoin halving is an event that occurs roughly every four years and is expected to happen again next April. The halving will reduce the bitcoin reward that miners receive for validating blocks on the blockchain from 6.25 BTC to 3.125 BTC. This could lead to a supply crunch for the digital asset, which could lead to price appreciation.
The story continues
Watch: Bitcoin ETFs set to attract funds from US pension plans, says Standard Chartered analyst | Future Focus
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Forensic Risk Alliance (FRA), an independent consultancy specializing in regulatory investigations, compliance and litigation, has welcomed U.S.-based cryptocurrency specialist Thomas Hyun as a director of the firm’s global cryptocurrency investigations and compliance practice. Hyun brings to the firm years of experience building and leading anti-money laundering (AML) compliance programs, including emerging payment technologies in the blockchain and digital asset ecosystem.
Hyun has nearly 15 years of experience as a compliance officer. Prior to joining FRA, he served as Director of AML and Blockchain Strategy at PayPal for four years. He established PayPal’s financial crime policy and control framework for its cryptocurrency-related products, including PayPal’s first consumer-facing cryptocurrency offering on PayPal and Venmo, as well as PayPal’s branded stablecoin.
At PayPal, Hyun oversaw the second-line AML program for the cryptocurrency business. His responsibilities included drafting financial crime policies supporting the cryptocurrency business, establishing governance and escalation processes for high-risk partners, providing credible challenge and oversight of front-line program areas, and reporting to the Board and associated authorized committees on program performance.
Prior to joining PayPal, Hyun served as Chief Compliance Officer and Bank Secrecy Officer (BSA) at Paxos, a global blockchain infrastructure company. At Paxos, he was responsible for implementing the compliance program, including anti-money laundering and sanctions, around the company’s digital asset exchange and its asset-backed tokens and stablecoins. He also supported the company’s regulatory engagement efforts, securing regulatory approvals, supporting regulatory reviews, and ensuring compliance with relevant digital asset requirements and guidelines.
Thomas brings additional experience in payments and financial crime compliance (FCC), having previously served as Vice President of Compliance at Mastercard, where he was responsible for compliance for its consumer products portfolio. He also spent more than seven years in EY’s forensics practice, working on various FCC investigations for U.S. and foreign financial institutions.
Hyun is a Certified Anti-Money Laundering Specialist (CAMS) and a Certified Fraud Examiner (CFE). He is a graduate of New York University’s Stern School of Business, where he earned a bachelor’s degree in finance and accounting. Additionally, he serves on the board of directors for the Central Ohio Association of Certified Anti-Money Laundering Specialists (ACAMS) chapter.
Commenting on his appointment, Hyun said, “With my experience overseeing and implementing effective compliance programs at various levels of maturity and growth, whether in a startup environment or large enterprises, I am excited to help our clients overcome similar obstacles and challenges to improve their financial crime compliance programs. I am excited to join FRA and leverage my experience to help clients navigate the complexities of AML compliance and financial crime prevention in this dynamic space.”
FRA Partner, Roy Pollittadded: “As the FRA’s sponsor partner for our growing Cryptocurrency Investigations and Compliance practice, I am thrilled to have Thomas join our ever-expanding team. The rapid evolution of blockchain and digital asset technologies presents both exciting opportunities and significant compliance challenges. Hiring Thomas in a leadership role underscores our commitment to staying at the forefront of the industry by enhancing our expertise in anti-money laundering and blockchain strategy.”
“Thomas’ extensive background in financial crime compliance and proven track record of building risk-based FCC programs in the blockchain and digital asset space will be invaluable as we continue to provide our clients with the highest level of service and innovative solutions.”
“FRA strengthens cryptocurrency practice with new director Thomas Hyun” was originally created and published by International Accounting Bulletina brand owned by GlobalData.
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Bitcoin fell in line with the broader cryptocurrency market, with ether and other altcoins also falling.
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Financial markets were weighed down by risk-off sentiment ahead of the Fed’s interest rate decision and press conference later in the day.
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10x Research said it is targeting a price target of $52,000 to $55,000, anticipating further selling pressure.
Bitcoin {{BTC}} was trading around $57,700 during European morning trading on Wednesday after falling to its lowest level since late February, as the world’s largest cryptocurrency recorded its worst month since November 2022.
BTC has fallen about 6.3% over the past 24 hours, after breaking below the $60,000 support level late Tuesday, according to data from CoinDesk. The broader crypto market, as measured by the CoinDesk 20 Index (CD20), lost nearly 9% before recovering part of its decline.
Cryptocurrencies have been hurt by risk-off sentiment in broader financial markets amid stagflation in the United States, following indications of slowing growth and persistent inflation that have dampened hopes of an interest rate cut by the Federal Reserve. The Federal Open Market Committee is due to deliver its latest rate decision later in the day.
Ether {{ETH}} fell about 5%, dropping below $3,000, while dogecoin {{DOGE}} led the decline among other major altcoins with a 9% drop. Solana {{SOL}} and Avalanche {{AVAX}} both lost about 6%.
Bitcoin plunged in April, posting its first monthly loss since August. The 16% drop is the worst since November 2022, when cryptocurrency exchange FTX imploded, but some analysts are warning of further declines in the immediate future.
10x Research, a digital asset research firm, said it sees selling pressure toward the $52,000 level due to outflows from U.S. cash exchange-traded funds, which have totaled $540 million since the Bitcoin halving on April 20. It estimates that the average entry price for U.S. Bitcoin ETF holders is $57,300, so this could prove to be a key support level.
The closer the bitcoin spot price is to this average entry price, the greater the likelihood of a new ETF unwind, 10x CEO Markus Thielen wrote Wednesday.
“There may have been a lot of ‘TradeFi’ tourists in crypto – pushing longs all the way to the halving – that period is now over,” he wrote. “We expect more unwinding as the average Bitcoin ETF buyer will be underwater when Bitcoin trades below $57,300. This will likely push prices down to our target levels and cause a -25% to -29% correction from the $73,000 high – hence our $52,000/$55,000 price target over the past three weeks.”
The story continues
UPDATE (May 1, 8:56 UTC): Price updates throughout the process.
UPDATE (May 1, 9:57 UTC): Price updates throughout the process.
UPDATE (May 1, 11:05 UTC): Adds analysis from 10x.
Hello from Austin, where thousands of crypto enthusiasts braved storms and scorching heat to attend Consensus. The industry’s largest and longest-running conference, which can sometimes feel like a religious revival, offers opportunities to chat and listen to leading names in crypto. And for the casual observer, Consensus offers a useful glimpse into the mood of an industry prone to wild swings in fortune.
Unsurprisingly, the mood is noticeably more positive than it was a year ago, when crowds were sparse and many attendees were quietly confiding that they were considering switching to AI. In practice, that means some of the more obnoxious elements are back, but not to the level of Consensus 2018 in New York, when charlatans parked Lamborghinis outside the event and the hallways were lined with booth girls and scammers pitching “ICOs in a box.”
This time around, Elon Musk’s Cybertrucks have replaced Lamborghinis as the vehicle of choice for marketers. One of the most notable publicity stunts was a startup that paid a poor guy to parade around in the Texas sun in a Jamie Dimon costume, wig, and mask, and then staged a mock assault on him by memecoin characters.
Outside the event was a giant “RFK for President” truck, while campaign staffers manned a booth instead — a reflection of both the election year and crypto’s willingness to latch onto any candidate, no matter how outlandish, who will talk about the industry. RFK himself is scheduled to address the conference on Thursday.
Excesses aside, the general sense of optimism was understandable. The cryptocurrency market has not only recovered from the wave of fraud that nearly sank it in 2022, it is riding a new wave of political legitimacy. This month, cryptocurrencies scored once-unthinkable political victories in Washington, D.C., and there is a sense that the industry has not only withstood the relentless regulatory assaults of SEC Chairman Gary Gensler and Sen. Elizabeth Warren, but is poised to defeat them.
And while cryptocurrency is still searching for its flagship application, the optimists I spoke with pointed to signs that it is (once again) upon us. Those signs include the rapid advancement of zero-knowledge proofs as well as the popularity of Coinbase’s Base blockchain and, perhaps most importantly, the large-scale arrival of traditional finance into the world of cryptocurrencies – a development that not only provides a major financial boost, but also a new element of stability and maturity that will, perhaps, tame the worst of crypto’s wilder side. Finally, this consensus marked the end of the Austin era as the conference, under new leadership, will be held in Toronto and Hong Kong in 2025.
The story continues
Jeff John Roberts
jeff.roberts@fortune.com
@jeffjohnroberts
This story was originally featured on Fortune.com
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