3 hours ago
Grayscale announces new filing for Ether ETF
Cryptocurrency investment firm Grayscale on Tuesday took the next step toward establishing an Ether exchange-traded fund.
The company filed a Form S-3 with the U.S. Securities and Exchange Commission as part of the process to convert its Grayscale Ethereum Trust (ETHE) fund into an ETF.
Grayscale has also filed to form a Grayscale Ethereum Mini Trust, which will likely have lower management fees than ETHE.
The SEC gave the green light to a Bitcoin ETF earlier this year, but the regulator has yet to approve an Ethereum ETF. Industry experts expect an update within the next month, but many are skeptical of approval.
Grayscale was a key part of the effort to get the Bitcoin ETF approved, which included a lawsuit with the SEC. Grayscale Bitcoin Trust (GBTC), the largest Bitcoin ETF, has suffered outflows since its conversion in January.
— Jesse Pound
3 hours ago
Capital Economics predicts Fed rate cuts could start in September
”[G]The swell is strong. The Fed's policy priorities haven't slowed inflation as much as expected. “Officials are probably spooked by concerns about the persistence of inflation,” Neil Shearing, group chief economist at Capital Economics, said Monday. There is no need to rush to cut it unless there is an economic shock.
London-based Capital Economics believes it makes more sense for the European Central Bank and Bank of England to ease monetary policy before the US, saying: “Economic growth in these countries is weak and inflation is below target. “As more households and businesses refinance their fixed-rate debt, there is a risk that policy will become too harsh.”
Shearing said neither central bank needs to wait for the Fed to take the lead. Both have operated independently of the Fed over the past economic cycles.
According to Capital Economics, the market is too pessimistic about interest rate policy in the second half of 2024 and 2025. “While developments on the inflation front have muddied the picture, we still expect the Fed, ECB and Bank of England to cut rates by more than the market is currently pricing in over the next 18 months. We think the central bank will also act, even if the Fed waits until September to take its first action. ”
— Scott Schnipper
3 hours ago
S&P 500 Financial will outperform S&P 500 by 3 percentage points in 2024
Don't look now, but the S&P 500 Financial has outperformed the overall market as measured by the S&P 500 by 9.3% to 6.3% so far in 2024. It also outpaces his 6.1% rise this year in the S&P 500 tech index.
“Banks continue to perform well globally,” Strategas Securities' technical and macro research team, led by Chris Verrone, told clients Tuesday morning. “A more impressive response to the market's initial oversold conditions has come from the financial sector, which is once again making new relative performance highs,” Strategas said. “Approximately 25 Russell 1000 financial members [Monday’s] It's a relatively strong list for the first time in three months, with capital markets, banking and consumer finance names leading the push. ”
The top 25 financial stocks range from Bank of America, with a market capitalization of about $300 billion, to SLM Corporation, with a market capitalization of about $5 billion.
The relative strength of financial stocks is not limited to the United States. “Globally, European and Japanese banks also maintain their leadership position as the overall market consolidates and adjusts,” Strategas said. For example, British bank Barclays' ADRs rose 22.5% in 2024, outpacing the 16.6% rise in S&P 500 Communication Services stocks.
See chart…
2024 S&P 500 Financial vs. S&P 500.
4 hours ago
Observe how stock prices move significantly after hours
Some of the stocks that made big moves in after-hours trading are listed below.
- Tesla — The electric car maker rose 8.2% despite missing expectations on both lines. Tesla has shared new efforts to offer affordable models.
- Mattel — The toy maker soared 2.4% after reporting a smaller loss per share than Wall Street expected.
- Visa — The financial company rose 2.6% after reporting better-than-expected earnings.
See the complete list here.
— Alex Harring
4 hours ago
S&P500 futures rise
S&P 500 futures rose just after 6 p.m. ET.
Futures tracking the benchmark index rose 0.2%, while Nasdaq 100 futures rose 0.4%.
Dow futures added just 7 points and were trading just above the flatline.
— Alex Harring
