Stocks Got Smoked 💨

/ Stocktwits

Tale of the Tape

Good evening, everyone. Stocks got smoked— it was gross.

The S&P 500 had its worst day since February 25, 2021. 

Here’s the S&P 500 heat map— oof. 🥵

Every major index cascaded lower. The small-caps stumbled 3.3%, followed by the Nasdaq’s nasty -2.67%. The Nasdaq Composite is only up 1.11% in 2021. 😳

Energy was the only sector to settle in positive territory. $XLE was up ~3.5%, only to close +0.48% on the day. Consumer discretionary dropped 3.4%, followed by tech’s 2.8% tumble. 

Communications, utilities, industrials, real estate, and basic materials all broke down more than 2%. 

Crypto had a crazy day. 🤪 Bitcoin bopped -4.5%. Ethereum dropped 3%. And Shiba got shilled as Ethereum’s founder, Vitalik Buterin, sent $1B to an Indian COVID relief fund. Hear more on tonight’s episode of After Hours. 🌌

Tesla tumbled 4.42% to close at its lowest price since March 8, 2021. Will Elon’s EV maker hold the line? Or is “support” a smoke screen? Here’s the daily chart:

Lemonade might be a lemon. The stock dropped 18.5% after last night’s earnings to settle at its lowest price since November 13, 2020. 🍋

Here are the closing prints: 

S&P 5004,063-2.14%
Nasdaq13,031-2.67%
Russell 20002,135-3.26%
Dow Jones33,587-1.99%

Beware of Bitcoin, Says The SEC

We love being called crypto lovers— it’s our swag. 😎 Someone, however, is not feeling this vibe. 

The U.S. Securities and Exchange Commission (SEC) issued a warning about Bitcoin futures. The statement makes it pretty clear that Bitcoin is “highly speculative,” volatile, and high-risk.

Experts assume the SEC’s warning indicates little support for a potential Bitcoin ETF. The statement is a shock for many, especially when ETFs have already invested in crypto futures contracts.

Soo… are we back to square one? Time will tell.

Earnings Round-Up

Sonos, the music and speaker company, beat and raised guidance today after the close. 🎶 The company was profitable, growing revenue 90% YoY.

Here are the stats:

EPS: $0.31 vs ($0.22) est.
Revenue: $332.9M, +90% YoY

Sonos CEO Patrick Spence commented: 

We are thrilled to report another record quarter at Sonos, as demand for our products continues to exceed even our heightened expectations. The power of our model is that customers can start with one product and expand to more over time, and our customers continue to prove they do just that. Based on our outstanding second quarter performance, the continued strong demand for our products, and the power and profitability of our unique business model, we are raising our outlook for fiscal 2021 again.

$SONO soared 16.7% after hours.

Poshmark posted Q1 earnings after the bell. 🔔 The social marketplace stock beat on top and bottom lines and grew revenue 42% YoY.

Here are the details:

EPS: ($0.33) vs ($0.41) est.
Revenue: $81M, +42% YoY

Poshmark CEO Manish Chandra shared:  

We are optimistic that as consumers begin to leave their homes and engage in social activities once again, there will be pent-up demand for apparel, which could drive more frequent and a wider range of apparel and accessory purchases, benefiting our marketplace. We will continue to execute our growth strategies to better serve our sellers, support our community, and grow our business over the long term.

$POSH plopped 11.7% after hours. 📉

Outta’ Gas ⛽ 🙁

Almost ¾ of all gas stations in the Southeast have run out of gas. Yeah, not good.  

The massive US fuel pipeline shutdown has drained 78% of gas stations in Spartanburg, South Carolina, 73% of stations in Pensacola, Florida, and 71% of the pumps in Charlotte, North Carolina. About 65% of stations in Norfolk, Virgina have no gas, either. 😬

Cars are lined up outside gas stations in DC with prices surging over $3. Gary Kandola, the CFO of Express Fuel Distributors Corp., commented: 

The situation completely changed overnight. [DC has] people coming in from Virginia, Maryland to acquire fuel.

President Biden expects “good news” regarding the pipeline shutdown in the next 24 hours. Here’s Bloomberg with more info. 

Hertz’s Bankruptcy Bailout

Hertz, the bankrupt car rental company, just struck a deal with Knighthead Capital Management and Certares Management to buy the company out of bankruptcy… at a $7.43B valuation. Phew. 😌

The deal benefits Hertz shareholders, recovering almost $8/share— two months ago, Hertz shares barely scraped $5 highs. 

A previous Knighthead offer valued Hertz at $6.2B with equity at $2.25/share. Thanks to its current deal, Hertz has been bought out of Chapter 11 and bailed out of the scuffle for its company’s control. 

Here’s Bloomberg with more. 

Save the Earth, Buy an NFT

Cryptocurrencies and digital assets are infamous for exploiting the earth’s resources. But now we know how NFTs can support climate change efforts, too. ♻️ 😊

Imogen Heap, one of the first artists to start experimenting with blockchain, just created a collection of six audiovisual NFTs that are carbon negative (aka they emit fewer greenhouse gases). 

The collection was sold on OpenSea with the help of Nori, a carbon removal marketplace. Nori supposedly helped remove 20 tonnes of carbon dioxide from the atmosphere. Compare that to the average 0.2 tonnes of CO2 emissions generated by most NFT releases.

Who would’ve thought digital art could protect the planet? 🌎 🎨 

Earnings This Week

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

Links That Don’t Suck

​💰 eCommerce Fintech Company Logiq (OTC: LGIQ) Announces IPO of Units in Canada on NEO*

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🦴 Vitalik’s Regift of Unsolicited DOGE Knockoffs Sends Memecoin Prices Plunging

🎨 Protocols and Creator DAOs: Economic Flows and Cultural Products

💼 TikTok Is Launching a Job Hiring Service to Help Find Gigs for Gen Z. 

🕹 The Great Online Game

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🇯🇵 ADX Transforms Excavated Soil into Trapezoid Walls for This House in Japan