$COIN Ripped Then Dipped on Day 1

Tale of the Tape

Good evening, y’all. It was a wacky Wednesday on Wall Street. 🐪

The major indices finished mixed. 🤷 We saw the opposite action from yesterday— The Russell 2000 led with the Dow not far behind. The S&P 500 and Nasdaq both closed lower. 

Energy was the strongest sector. $XLE advanced 2.78%. Is it time for energy to surge to its next leg higher? Time will tell… 

Basic materials and financials also flew more than 0.50%. Consumer discretionary, communications and tech all tumbled 1%. 

Ethereum continued its break-out to blue skies while Bitcoin took a brief break. Dogecoin ripped another 30%. 🐕

Coinbase opened more than $100 above its reference price in an insane opening day. But did the stock have a successful day 1? 🤔 Listen to tonight’s recap on After Hours here. 🌌

The big banks kicked off earnings season this morning. Goldman crushed it with triple-digit revenue growth. 🚀 Read more in the round-up below. 

Here are the closing prints: 

S&P 5004,124-0.41%
Russell 20002,247+0.84%
Dow Jones33,730+0.16%

Here Comes Coinbase

Coinbase had quite the debut during its direct listing. $COIN came in with a reference price of $250, valuing the crypto exchange at a breezy $66.5B. 

The reference price is just that, though… a reference.

The stock started trading at 1:25 PM ET with an opening print of $381. $COIN quickly flew to an intraday high of $429.54 before collapsing to $310. What’s >100 points between friends??  😬 🤷‍♂️

Here’s the 1-minute chart:

Although it was tough day for retail traders, early Coinbase investors seem pleased. 

As of today’s close, $COIN ($328) has a market cap of $74B. 🤯

Brian Armstrong, Co-founder and CEO of Coinbase, commented: 

Today’s listing is a milestone, but it’s not as important as every new day in front of us. Coinbase has an ambitious mission: to increase economic freedom in the world. Everyone deserves access to financial services that can help them build a better life for themselves and their families. We have a lot of hard work to do to make this a reality.

We’re still in the early days of this industry, but we’re squarely focused on the future, on our mission, and on building the best crypto experiences for you, our community.

Read Brian’s full letter here

J&J Halts Vaccine Rollout

Health officials are encouraging a nationwide pause on Johnson & Johnson vaccines. 

After 6 women (ages 18-48) developed life-threatening blood clots in response to J&J’s vaccine, doctors are now called to “look in all nooks and crannies” for more patients experiencing similar symptoms. Over 7 million Americans have received the J&J one-dose shot so far. 

Johnson & Johnson’s rollout is also temporarily halted in Europe. Clotting symptoms have been identified between 6-13 days after vaccination, though Peter Marks of the FDA Center for Biologics Evaluation and Research said: 

[The clotting] could just be a statistical aboration. 

Health officials say patients who received J&J’s shot over 1 month ago are at low risk for clotting. Still, officials worry the bad press could fuel existing anxiety around immunizations. 

No definitive cause of the clotting has been identified yet. Here’s Bloomberg with the details. 

R.I.P. Bernie Madoff

At 82, the Ponzi-scheme king Bernie Madoff passed away today. 

Madoff served as Nasdaq’s chairman and was a Wall Street icon for decades. In 2008, the financial tycoon pleaded guilty to a multibillion-dollar Ponzi scheme for which he served a 150-year prison sentence. 

Madoff’s scheme conned 40,000+ people in 125 different countries— Bernard L. Madoff Investment Securities orchestrated the $65B scam over the course of almost 40 years. 

Madoff suffered from chronic kidney disease, and he died in North Carolina’s Federal Medical Center. His attorney shared: 

[Bernie Madoff] doesn’t dispute the severity of his crimes nor does he seek to minimize the suffering of his victims. Now, after over 10 years of incarceration and with less than 18 months to live, Mr. Madoff humbly asks this Court for a modicum of compassion.

Madoff’s request for compassionate release was ultimately denied. Here’s the WSJ with more. 

Earnings Round-Up

JPMorgan Chase crushed Wall Street expectations after reporting 14% YoY growth on the top line, as well as a release of $5.2B loan loss reserves. The stock closed down 1.85% on the day.

Here are the numbers:

EPS: $4.50 vs $3.10 est
Revenue: $32.27B, 14% YoY growth

Jamie Dimon, JPMorgan’s Chairman and CEO, had this to say:

We continue to make significant investments in products, people, and technology, all while maintaining credit discipline and a fortress balance sheet. We are fully engaged in trying to help solve some of the world’s biggest issues, and we announced a commitment to finance and facilitate $200 billion in 2020 to drive action on climate change and advance sustainable development.

Goldman Sachs destroyed estimates by a wide margin after reporting 102% YoY growth in Q1. 💥 The stock was up 2.34% on the day.

Here are the numbers:

EPS: $18.60 vs $10.22 est, 
Revenue: $17.7B, 102% YoY growth

Here’s what David M. Solomon, Goldman Sachs’ Chairman and Chief Executive Officer, said during the call:

We have been working hard alongside our clients in preparation for a world beyond the pandemic and a more stable economic environment. Our businesses remain very well positioned to help our clients reposition for the recovery, and that strength is reflected in the record revenues and earnings achieved this quarter.

Wells Fargo beat estimates on both top and bottom line. The stock surged 5.53% as $WFC CEO Charlie Scharf commented:

Our results for the quarter, which included a $1.6 billion pre-tax reduction in the allowance for credit losses, reflected an improving U.S. economy, continued focus on our strategic priorities, and ongoing support for our customers and our communities. Charge-offs are at historic lows and we are making changes to improve our operations and efficiency, but low interest rates and tepid loan demand continued to be a headwind for us in the quarter.

Here are the numbers:

EPS: $1.05 vs $0.72 est.
Revenue: $18.06B +1.9% YoY

The three banks— $JPM, $GS, and $WFC— account for ~20% of the Financial Select Sector SPDR ETF $XLF, which finished $0.12 off its all-time high. 

Here’s the daily chart:

SO. Who’s next..? 

Bank of America, BlackRock, and Citigroup will report earnings early tomorrow morning. ☀️ ☕ See the calendar below. 

Earnings This Week

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

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