FAVORABLE BOOST
Following the favorable comments from Federal Reserve Chair Jerome Powell at the Jackson Hole symposium, U.S. listed spot bitcoin exchange-traded funds (ETFs) experienced a surge in daily net inflows, surpassing $252 million on Friday – the highest level since July 23. This uptick in activity coincided with trading volumes for the eleven ETFs hitting $3.12 billion, marking their highest level since July 19, according to SoSoValue data. Key players such as BlackRock’s IBIT led the way with $1.2 billion in trading activity and $83 million in inflows. In addition, Fidelity’s FBTC and Bitwise’s BITB also saw significant inflows of $64 million and $42 million, respectively, with the latter crossing the $2 billion assets under management milestone. However, Grayscale’s GBTC showed net outflows of $35 million, while their BTC fund received $50 million in inflows.
RISE DUE TO INCREASING TENSIONS
Oil prices have increased as a result of heightened tensions in the Middle East. In Lebanon, Israel’s strike on Hezbollah exacerbated tensions, prompting retaliatory missile launches. Meanwhile, in Libya, oil exports were halted by the eastern government amidst a dispute over control of the central bank, impacting overall oil production. This turmoil pushed global benchmark Brent to $81 a barrel and West Texas Intermediate above $76. Nevertheless, despite these conflicts, it is important to note that global oil supply has remained steady, which suggests that the market is adapting to Middle East tensions with minimal impact on production as of yet. Furthermore, U.S. oil prices rose due to geopolitical risks and anticipation of an upcoming interest rate cut.
FINANCIAL TURMOIL
Boeing’s Starliner program is facing uncertainty and financial strain as it is losing out to SpaceX for NASA’s astronaut transport. The struggling aerospace giant’s shareholders are concerned about the program’s viability, given its history of setbacks and financial losses. With SpaceX proving to be a more reliable option for astronaut missions, Boeing’s new CEO, Kelly Ortberg, must make critical decisions to address shareholder concerns and ensure the company’s future in space exploration. The financial burden of ongoing issues with Starliner raises doubts about its profitability and long-term success, prompting shareholders to question the company’s commitment to human spaceflight, and as Boeing navigates these challenges, the pressure is on Ortberg to make strategic decisions that will satisfy shareholders and secure Boeing’s position in the competitive space industry.
REDEFINING RETAIL
There has been a notable shift in consumer spending patterns, with more consumers opting for mass retailers like Target to buy non-essential items such as clothes and decor. This change has raised concerns about the future of traditional retailers like Nordstrom, Gap, and Abercrombie & Fitch. In addition, smaller retailers are facing challenges due to consumer uncertainty caused by higher prices on essential goods. Moreover, the upcoming earnings reports from companies like CrowdStrike and Nvidia will provide valuable insights into the performance of the tech industry, with particular focus on Nvidia’s results. Market expectations for Nvidia’s earnings are high, and the outcomes will be closely watched to gauge market trends.
KEY EVENTS HAPPENING THIS WEEK
Monday: Durable-goods orders and durable-goods minus transportation reports for July, and speech from San Francisco Fed President.
Tuesday: S&P Case-Shiller home price index report June, and consumer confidence report for August.
Wednesday: Earnings reports from Nvidia and CrowdStrike (after market closes), and speech from Atlanta Fed President Raphael Bostic.
Thursday: Advanced U.S. trade balance in goods, retail inventories and wholesale inventories, and pending home sales reports for July, second GDP revision for (2nd revision) for second quarter, initial jobless claims for week ending on August 24, and speech from Atlanta Fed President Raphael Bostic.
Friday: Nominal personal income and personal spending, personal consumer expenditure (PCE) index and core PCE index reports for July, and final Consumer sentiment report for August.
