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APRIL 24, 2024

STEADY MODE

The top cryptocurrencies in the market, are currently experiencing a period of stability as traders evaluate market conditions post-halving. With Bitcoin trading above $66,600 and Ether at around $3,240, the market has calmed down after recent volatility driven by geopolitical tensions and halving excitement. As of today, traders seem hesitant to take decisive action, leading to a stagnant market with prices holding steady. In addition, the market sentiment remains mixed as investors weigh negative news, including delays in ETF applications and regulatory concerns, against recent corrective pullbacks that cleared some market froth. Nonetheless, despite short-term uncertainties, investors are holding on to their coins, indicating optimism for long-term price growth. Moreover, the CoinDesk 20 Index, measuring the largest digital assets by market cap, remains unchanged at 2,343, reflecting the current market indecision and cautious optimism among traders.

RISE DESPITE EARNINGS

Despite falling short of earnings expectations, investors responded positively to Tesla’s stock jump after the company announced plans to accelerate the release of more affordable vehicles. Tesla reported a revenue and earnings miss in its first quarter shareholder release, with adjusted EPS of $0.45, below estimates, and revenue of $21.30 billion, missing forecasts. Also, Tesla’s operating profit and adjusted net income fell over 50% from the previous year. However, as stated before, despite falling below expectations, the focus on the future launch of new models, including the highly anticipated budget-friendly Model 2 priced under $30,000, offered a glimpse of growth potential for the electric vehicle giant. Tesla’s strategy to integrate new and current platforms for production aims to optimize efficiency and streamline manufacturing processes.

ABOVE EXPECTATIONS

Boeing has revealed better-than-expected financial results for the first quarter, as the company reported a reduced loss and lower cash burn than projected. Boeing, which is part of the Dow Jones Industrial Average and the S&P 500 indexes, is focused on stabilizing its supply chain amidst ongoing challenges related to the 737 Max safety crisis. CEO Calhoun emphasized the prioritization of safety and quality, acknowledging the impact of reduced deliveries on customers and financials. Nevertheless, it is worth noting that as production rates have been lowered, particularly for the 737 Max planes, Boeing still faces questions about when it will stabilize production. As a result, the company is currently working to address concerns and ensure compliance along its supply chain. In addition, Boeing is aiming to strengthen its operations, enhance predictability, and improve efficiency in the long term. 

OIL DIP

Despite a recent uptick, U.S. crude oil prices have dropped below $83 a barrel as tensions between Israel and Iran eased, and now market attention shifted to the basic principles of supply and demand. Prices for West Texas Intermediate were at $82.99 a barrel, while Brent was at $87.14 a barrel, RBOB Gasoline at $2.72 per gallon, and Natural Gas at $1.78 per thousand cubic feet. Analysts predict that Brent crude prices are unlikely to sustain a rally above $95 a barrel at the moment due to steady oil flow from the Middle East, increased U.S. production, stable inflation rates, and the ability of OPEC to regulate the market during supply emergencies. Moreover, the U.S. Senate passed sanctions targeting Iranian oil, with President Biden having the ability to waive them for national security reasons, potentially avoiding impacts on global oil prices. 

DELAYING HOME PURCHASE

As stated by the Mortgage Bankers Association, due to the continuous rise in mortgage rates, which have increased for the third consecutive week, and reached their highest level since November, there was a decrease in demand for mortgage applications by 2.7% compared to the previous week. The average contract interest rate for 30-year fixed-rate mortgages rose to 7.24%, with points also increasing slightly. Consequently, refinancing applications declined by 6% for the week, while applications for purchasing a home dropped by 1%. The rise in home prices combined with higher interest rates is limiting the purchasing power of potential buyers. As a result, some buyers are postponing their purchase decisions, leading to a decrease in mortgage application numbers. Moreover, although mortgage rates have slightly decreased this week, upcoming economic data, such as the monthly employment report, could impact future rate changes.

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