Tale of the Tape
Happy Tuesday, gang. Time to break down today’s moves. 💃
The four major indices kept climbing, adding to yesterday’s beefy gains. The Nasdaq hit an all-time high, +0.79%.
Since stocks did so well, we’ll share which sectors didn’t: real estate and utilities ended red.
There’s trouble in crypto town. The market continues to spiral, but crypto won’t go down without a fight. 🥊 Bitcoin rose 2.71% after yesterday’s double-digit losses.
AI SaaS platform ALFI has kept up mega gains after announcing its $2M stock buyback. 💪 $ALF’s trending on Stocktwits, +107%.
We have an unexpected winner in the commodities world today: rice. 🌾 Rice futures traded +3.26%. Natural gas also closed up 2.3%.
Here are the closing prints:
| S&P 500 | 4,224 | 0.51% |
| Nasdaq | 14,141 | 0.79% |
| Russell 2000 | 2,286 | 0.46% |
| Dow Jones | 33,876 | 0.20% |
Exxon Axes Its Workers ⚒️
Exxon announced a plan to axe 5-10% of its workers through a “performance-improvement program.” The program will target “low-rated employees” in white-collar positions.
This sounds like it’ll go over real well. 😅
The oil and gas company has emphasized cost-cutting since the pandemic’s record-low gas prices. Exxon currently plans to slash 14,000 jobs by 2022.
To make matters worse, the company already suspended bonuses and halted employee-contribution matches to 401(K)s. Oh, and Exxon just got bodied by an activist investor.
It’s anything but sunshine and daisies at Exxon right now. But in typical Wall Street fashion, $XOM’s cost-cuts boosted the stock 7% in June.
Bitcoin’s Bust…Or Boom? 💥
Bitcoin dipped below $30,000 today… its lowest level since January. 😔 We’re in mourning, too.
According to LunarCRUSH, $BTC.X lost ~20% of its value in a week. Altcoins like Ether, XRP, and Cardano sank 10-20%. Doge tumbled 25%.
Will this madness endure forever??!! Well actually, no. 😉
It might be the best time to buy the dip. Even CNBC’s Jim Cramer plans to buy Bitcoin again.
Take a deep breath and relax, it’s time to strategize. There’s always a run after a dip. The only question is— how far and fast will it go?? Place your bets. ⌛ 🎲
We Love a Big Buyback💰
Digital Currency Group (DCG), Grayscale’s parent company, announced a plan to buy back $50M worth of shares in its own Ethereum Classic (ETC) Trust. 🤑
Why? Grayscale’s ETC Trust has traded at a discount for over two months, meaning shares’ market prices trade lower than net asset value. In other words, price doesn’t match value. As a show of faith, DCG jumped in to balance the fund.
Before this, DCG did once try to buy back shares in Grayscale’s flagship Bitcoin Investment Trust (GBTC). But GBTC continues to trade at a discount relative to value.
If the same happens with the ETC Trust, long-term HODLers could find value in picking up some cheap shares. ✨
Plug Powers Up
Plug Power missed earnings estimates today, but the stock nonetheless climbed ~14%. Uhh, Why?? 🤔
The company reported losses of ($0.12) per share, but beat sales estimates. Plug published $72M in sales and that’s peanuts compared to what’s supposedly coming next. 😋
Plug Power plans to make over $450M this year. According to Atom Finance’s consensus estimates, that number could balloon to $735M in 2022, and $1.1B in 2023.
In short, people are buying Plug Power for future value. But not everybody is sold just yet. Plug Power found accounting errors in March, prompting the company to restate its account in May. The restatement urged shares higher, but some bears are still weary. 🤷 🐻
Links That Don’t Suck
💰Get a prime price on IBD MarketSmith during our big two-day sale—only $39.95 for 5 weeks of access*
🔋 Ford Is Buying an EV Charging Firm
📈 CrowdStrike Fetches an Upgrade from Stifel, Rises 7%
🍩 Krispy Kreme Has a Donut for This Thursday’s Supermoon
🏡 US Existing-Home Prices Hit Record High in May
💡 FDA Approved Biogen Alzheimer’s Drug Despite Some Staff Concerns
👚 Why Amazon Should Pay Attention to Shein
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