A Market Whirlwind is Powered by Bitcoin ETF Buzz, Earnings Jitters and Global Tensions
A Market Whirlwind is Powered by Bitcoin ETF Buzz, Earnings Jitters and Global Tensions
By:JJ Kinahan
Despite yesterday’s wild market volatility, the S&P 500 and the Nasdaq Composite both closed nearly unchanged
- It’s a volatile day as the market reacts to the CPI, the bitcoin ETF launch, the impact of earnings reports and geopolitical tensions.
- Banks are reporting mixed results. Interest rate concerns persist at Bank of America and Wells Fargo.
- The bitcoin ETF debut is influencing crypto stocks, and the earnings season is starting with mixed performance and warnings.
Yesterday brought considerable market volatility, with the S&P 500 navigating a 60-point range but ultimately closing down merely three points (0.07%). Meanwhile, the Nasdaq Composite experienced a 260-point range, concluding the day with a marginal $0.54 increase.
The morning witnessed an initial market selloff catalyzed by a robust consumer price index (CPI) report, revealing a 0.3% month-to-month inflation surge, surpassing the expected 0.2%. On a year-over-year basis, inflation rose to 3.4%, exceeding the 3.2% forecast. However, the subsequent producer price index (PPI) painted a different picture. Month-to-month, PPI contracted by 0.1%, contrary to the anticipated 0.1% increase. Year-over-year, PPI rose by 1%, slightly below the expected 1.3%.
Bitcoin ETFs debut
A pivotal moment came yesterday was the launch of several bitcoin exchange-traded funds (ETFs), contributing to bitcoin's ascent above $49,000 before retracing later in the day. Despite an initial boost, stocks associated with crypto trading faced challenges. Coinbase (COIN), for example, was down over 6.5%, and crypto-related stocks, like Marathon Digital Holdings (MARA) was down more than 12%. The introduction of these ETFs marks a noteworthy shift, enabling retail customers to trade bitcoin in stock form, potentially impacting the crypto sector.
Earnings season commenced with banks taking the forefront. A key focus lies on net interest income forecasts, crucial as interest rates influence banks' profitability. Bank of America (BAC) beat earnings expectations but that was offset by a revenue miss, causing a 2.6% drop. Wells Fargo (WFC), despite beating on revenues, projected a 7%-9% decline in net interest income for the year, resulting in a 2.7% dip. JPMorgan Chase (JPM) had positive results, including a beat on revenues and net interest margin, prompting a 0.7% rise. Blackrock (BLK), although not a bank, disclosed earnings and announced the acquisition of Global Infrastructure Partners for $12.5 billion, with its stock dipping just under 0.5% in premarket.
Delta Airlines (DAL) and UnitedHealth (UNH) also reported earnings. Delta's in-line revenues and first-quarter guidance, coupled with lowered full-year guidance, led to an 8% stock decline. UnitedHealth, despite beating on revenues and earnings, announced higher costs, contributing to a 4% premarket dip.
Burberry (BURBY) warned of weakening demand for high-end retail, causing a significant market cap loss of 100 million pounds or $127.4 million U.S. dollars. Tesla (TSLA), unrelated to earnings, faced a 2.5% drop after announcing a two-week shutdown of its Berlin factory because of Red Sea shipping issues, potentially impacted by piracy concerns. Notably, a U.S.-led coalition launched rocket attacks on Houthi rebels in Yemen, raising oil prices by nearly 1.5%.
What to watch
Monitoring oil prices, the sustainability of bitcoin ETF volume, and fluctuations in interest rates—currently below 4% for the 10-year rate—remain crucial aspects of today's analysis. Oil, as a significant commodity, could wield the potential to disrupt the inflation landscape. Upholding a vigilant stance on these factors aligns with prudent adherence to one's investment strategy and long-term objectives.
JJ Kinahan is CEO of IG North America—which includes tastylive, tastytrade and IG's FX Business. Kinahan traded for 21 years at the Chicago Board Options Exchange. He serves on the CBOE Advisory Board and the SIFMA Options Committee. @thejjkinahan
For live daily programming, market news and commentary, visit tastylive or the YouTube channels tastylive (for options traders), and tastyliveTrending for stocks, futures, forex & macro.
Trade with a better broker, open a tastytrade account today. tastylive, Inc. and tastytrade, Inc. are separate but affiliated companies.
Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
tastylive content is created, produced, and provided solely by tastylive, Inc. (“tastylive”) and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. tastylive is not in the business of transacting securities trades, nor does it direct client commodity accounts or give commodity trading advice tailored to any particular client’s situation or investment objectives. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read the applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange-Traded Options Risk Disclosure found on tastytrade.com/disclosures.
tastytrade, Inc. ("tastytrade”) is a registered broker-dealer and member of FINRA, NFA, and SIPC. tastytrade was previously known as tastyworks, Inc. (“tastyworks”). tastytrade offers self-directed brokerage accounts to its customers. tastytrade does not give financial or trading advice, nor does it make investment recommendations. You alone are responsible for making your investment and trading decisions and for evaluating the merits and risks associated with the use of tastytrade’s systems, services or products. tastytrade is a wholly-owned subsidiary of tastylive, Inc.
tastytrade has entered into a Marketing Agreement with tastylive (“Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’s brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade. tastytrade and Marketing Agent are separate entities with their own products and services. tastylive is the parent company of tastytrade.
tastycrypto is provided solely by tasty Software Solutions, LLC. tasty Software Solutions, LLC is a separate but affiliate company of tastylive, Inc. Neither tastylive nor any of its affiliates are responsible for the products or services provided by tasty Software Solutions, LLC. Cryptocurrency trading is not suitable for all investors due to the number of risks involved. The value of any cryptocurrency, including digital assets pegged to fiat currency, commodities, or any other asset, may go to zero.
© copyright 2013 - 2025 tastylive, Inc. All Rights Reserved. Applicable portions of the Terms of Use on tastylive.com apply. Reproduction, adaptation, distribution, public display, exhibition for profit, or storage in any electronic storage media in whole or in part is prohibited under penalty of law, provided that you may download tastylive’s podcasts as necessary to view for personal use. tastylive was previously known as tastytrade, Inc. tastylive is a trademark/servicemark owned by tastylive, Inc.