Tale of the Tape
Good evening, everyone. The market of stocks edged as the Nasdaq and S&P 500 both closed at record highs. 💚
The Russell 2000 was the only index to close in red territory. $RUT declined 0.6%.
Financials fell 0.35% after banks announced stock buybacks and boosted quarterly dividends. See more below.
Bitcoin rebounded 5% and now trades over $36K per coin. $BTC.X has closed green 3 of the last 4 days… Don’t jinx it.
Healthcare and tech closed at new highs, today’s source of strength. 💪 $XLK gained 0.73% while $XLV moseyed up 0.11%.
$NTLA increased 13.6%, $VERV vroomed 20.5%, and $CERE climbed 136%…
Here are the closing prints:
A Banking Bonanza
After passing the Fed’s stress tests, banks are boosting quarterly dividends and announcing stock buybacks— US banks will pay $2B more per quarter in dividends. 💰
Morgan Stanley led the way, doubling its dividends (to $0.70). The bank also announced an ambitious $12B buyback program.
Goldman Sachs boosted dividends by 60% (to $2). Wells Fargo doubled dividends (to $0.20), halfway back to its pre-pandemic dividend of $0.51. The bank will prioritize its $18B buyback.
Bank of America will lift dividends by 17% (to $0.21). JPMorgan Chase increased dividends 11.1% (to $1). Citigroup said its dividends would be “at least 51 cents a share” (spoiler alert: Citi’s are at $0.51 right now).
What do big banks have in common? 🤔 Sticking to their pre-pandemic playbook of resuming stock buybacks and delivering strong dividends.
The Financial Select Sector SPDR Fund ($XLF) rose 1.35% this week.
Time to Change Savings Accounts??
Do you want a stable-yet-high-yield return on your crypto investment?? Coinbase has an offer for you. 😌
Buy USDC on Coinbase to receive a 4% return— $COIN cryptocurrencies claim to be backed by fiat currencies like dollars, pounds, etc. The exchange offers impressive rates to challenge conventional “high yield” savings accounts. A competitive rate right now is about 0.5%.
The 4% yield is higher than bank accounts but below lending competitors like BlockFi, which presently offers 8.6% returns on USDC and other stablecoins. 💸
Circle and Coinbase issue the stablecoin; there’s a similar program offered called Circle Yield. The only downside? No FDIC insurance. 😬 The auditable reserve might be strong enough for crypto maxis, though.
Higher return without higher risks…? 😍 Sign us up.
United’s Big Order 🛫
United Airlines is about to drop a bag. ✈️ 💰
In preparation for the post-COVID travel spree, United’s spending $35B on 270 new planes from Boeing and Airbus— it’s the largest aircraft order in history.
The airline expects purchases to boost domestic capacity by 30%. United also announced today that the company hopes to add 25,000 union jobs by 2026. United plans to grow its workforce by 36% just months after accepting $54B in government aid.
$UAL lost 0.65% today.
Green, Please. 💚
Concerned about Elon’s Bitcoin/environment tweet? Yeah, us too.
Nearly half of polled US investors worried about it, according to a new survey. 49% of the 1,103 respondents shared they have a “problem with Bitcoin environmental issues.”
In May, Musk stopped accepting Bitcoin as tender for purchases due to Bitcoin’s environmental impact. The price of $BTC.X started falling.
On the bright side, polls show eco-friendly investors. 72% of respondents said they’re in favor of a more ‘green’ cryptocurrency.
We’re all for decentralization while also saving the planet. ♻️ 🌎
Links That Don’t Suck
💰 Tom Brady & Gisele Bundchen Invest in Crypto Exchange FTX
🛰️ Musk’s Starlink Ready for Worldwide Availability
📈 Didi Global Prices IPO at $14 a Share
😂 If You Pay an Emotional Labor Fee, Postdates Will Get Your Stuff from Your Ex
🏡 US Home-Price Growth Rose to Record in April
🌱 Inflation Is Coming for Tofu Next as Americans Pay up for Protein
💡 How Often Does Dollar Cost Averaging Fail?