Tale of the Tape

Good evening, everyone, and happy almost-Friday!! 😪

The market of stocks continues to march. Every major index closed positive as the Nasdaq rallied 1.03% and closed at its highest price since February 19. 

Technology was today’s best sector. $XLK climbed 1.46% and closed at a new all-time high. See the charts below. 🕯

Energy was the only sector to slump more than 1%. $XLE stumbled 1.28% and closed at its lowest price since March 23. Did energy cool from its red hot start in 2021?? Time will tell… 

Today was the lightest volume day so far this year— maybe everyone was busy watching the Masters?? 🏌️‍♂️

Crypto was quiet— both Bitcoin and Ethereum buoyed yesterday’s losses. 

The Qs cruised 1.06% as the Nasdaq-100 ETF closed within $1.50 of its February all-time high. Is big tech back??? 

Square soared 5.4% while Paypal powered up 3.6%. ⚡ ⚡

The FAANG Gang had a near-perfect day. Facebook finished flat as it was the only stock that didn’t advance at least 0.61%.  

YETI yeeted up 2.2% as the stock closed at its highest price since February’s earnings release. 🥤 Will the cooler company cruise to an all-time high?? Place your bets…  

Here are the closing prints: 

S&P 500	4,097	+0.42%
Nasdaq	13,829	+1.03%
Russell 2000	2,242	+0.88%
Dow Jones	33,503	+0.17%

Tech Continues To Climb 

Technology climbed to an all-time high for the first time since February 12. The Technology Select Sector SPDR ETF $XLK is now up 5.7% so far this month. 👀

Here’s the daily chart:

The FAANG Gang continues to fly. The NYSE FANG+ Index inched up 1.4%. The index is up 10% from its March 25th low close. 🍑

Check out the daily chart: 

America’s Apple was the strongest FAANG member during today’s session. $AAPL has advanced for 6 straight days. 🍎

Life Comes At You Fast

One day you’re a billionaire, and the next, you’re… well, not. And if you’re Bill Hwang, this happens in a spectacular fashion. 💥

The former billionaire earned his wealth by gambling $200M in stock market swaps. His strategy was successful, and Hwang became one of the largest individual traders in the world. 

On March 26th, though, this strategy took a dark turn. Hwang’s hedge fund Archegos defaulted on its loans, blowing up its 5x leveraged bets and wreaking financial havoc. Credit Suisse Group AG, one of Hwang’s lenders, lost more than $4.7B. Nomura Holdings also faced a ~$2B loss.

Hwang once said:

I try to invest according to the word of God and the power of the Holy Spirit. In a way it’s a fearless way to invest. I am not afraid of death or money.

We certainly hope he’s still praying. We would be… 🙏 😬

Still Stuck, Just Somewhere Else

While the Ever Given is no longer stuck in the Suez Canal, it’s still very much stuck in Egypt… and the Egyptian government is holding the ship until its owners agree to pay for economic damages. 😬 🇪🇬

Soo how much are we talking? According to Suez Canal Authority Chairman Osama Rabie, it’s more than $1B. That number supposedly includes costs to free the ship, lost transit fees, and other miscellaneous costs. 

That bill is heavily contested, though. Refinitiv, a London-based financial analysis firm, estimated the Egyptian government’s total losses are only ~$95M in transit fees.

Mr. Robie commented on the ongoing financial negotiations: 

The vessel will remain here until investigations are complete and compensation is paid.

The next time you mess up big time, just remember: it could always be worse. 🚢  😂 

April 8 Is Kind of a Big Deal

April 15 might be tax day, but historically, April 8 is far more interesting. 

On April 8, 1895, the US Supreme Court ruled income tax unconstitutional, though the 16th amendment overturned that verdict. On April 8, 1952, President Truman nationalized the steel industry (this was also eventually repealed). Annnd on April 8, 1943, FDR froze wages, prices, and prohibited job changes unless it benefited war efforts. 

April 8 is quite the day. Who knew. 🤷 🇺🇸

Some other interesting announcements— this morning’s jobless claims came in higher-than-expected at 744,000. Also, big banks are set to report earnings next week. Stay tuned for JPMorgan, Wells Fargo, and Goldman Sachs on Wednesday. 

Here’s Eddy Elfenbein of Crossing Wall Street with more. 

China’s Digital Money

China invented paper currency in the 7th century, so it’s only fitting that China is also the first country ever to start minting digital money. 📱 💰

Unlike Apple Pay and other popular electronic payment methods, China’s digital legal tender is computer code. Current electronic payment systems just move money, they don’t actually mint it. 

Unlike cryptocurrencies, China’s new currency will be controlled by its central bank, a controversial move granting Chinese authorities the ability to monitor citizens’ financial transactions. Mu Changchun of the People’s Bank of China said: 

In order to protect our currency sovereignty and legal currency status, we have to plan ahead.

Meanwhile, US Treasury secretary Janet Yellen and Federal Reserve Chairman Jerome Powell say US officials are intensely studying the new currency. Here’s the WSJ with more. 

Earnings This Week

Be sure to know when your stocks report earnings. Here’s the earnings calendar. 

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