Breakfast News: Bitcoin Hits Record High
November 11, 2024
| Friday's Markets |
|---|
| S&P 500 5,996 (+0.38%) |
| Nasdaq 19,287 (+0.09%) |
| Dow 43,989 (+0.59%) |
| Bitcoin 76,564 (+0.78%) |
Source: Image created by Jester AI.
1) Crazy for Crypto
Bitcoin (BTC 1.81%) reached new all-time levels over the weekend, to over $81,000. Fool analyst Bernd Schmid notes: "No guarantees here, but November 5th might have marked the start of the crypto euphoria phase."
- Today's headlines are talking about $100,000 by inauguration day: When Bitcoin hit an early peak of $20,000 in 2018, some analysts thought it could reach $100,000+. They were laughed at...
- Halftime score: It's only five years since Harvard professor Kenneth Rogoff suggested there was more chance of seeing $100 than $100,000 in the next decade.
2) Stock Market Records
The stock market just had its best week of 2024, with all three indexes hitting record highs. The S&P 500 has posted its best 10-month run in an election year since 1936, briefly topping 6,000 points on Friday.
- Election year successes: Only once in an election year have stocks ended the year lower, and that was during the dot-com crash.
- In September, we asked when Fools believed the S&P 500 might reach 6,000: A majority of 54% responded "in 2025," and 30% said "before 2025."
3) Next Up: Earnings-ify
Tuesday brings Q3 earnings from Spotify (SPOT +0.98%) with analysts predicting an earnings per share (EPS) rise to $1.74. It comes after the company missed its Q2 target for monthly active users.
- Up 42% in the past 12 months, and 3,293% since IPO in 2015: Shopify (SHOP +0.74%) also reports Tuesday, after four quarters of earnings beats. Analysts expect flat EPS, after positive guidance at Q2 time.
- Retail bellwether: Home Depot (HD 2.05%) posts the same day. After a Q2 earnings beat, estimates show an EPS drop to $3.65 on the back of slowing consumer demand.
4) Disney Q4 Results Due
It's the turn of Walt Disney (DIS 0.01%) on Thursday, with the company expected to post a fall in EPS in its fourth quarter. Estimates show $1.09, from Q3's $1.39.
- Streaming services recently reported profitability for the first time: Investors expect further streaming gains, and will hope for better news from theme parks after a challenging previous quarter for that segment.
- "In my opinion, the best businesses will make cancellation part of their service and brand": Fool analyst Seth Jayson recently highlighted how a new rule "requiring businesses [like Disney+] to make canceling at least as easy as signing up is getting fierce blowback. The protesting businesses claim that onerous cancellation procedures are good for consumers."
5) Macro Measures
Eyes will turn to the October consumer price index (CPI) print due Wednesday. Year-over-year inflation is predicted at 2.5%, up from 2.4% in September.
- An update on the U.S. economy: A producer price index (PPI) update will follow on Thursday. And Friday will bring retail sales figures, with a rise of 0.3% expected after 0.4% last month.
- "We don't think it's a good time to be doing a lot of forward guidance": Fed chair Jerome Powell, staying tight-lipped for now, will speak on the latest economic outlook on Thursday.
6) Foolish Fun
Bitcoin is the most recognized, most highly valued, and most trusted cryptocurrency in the world. Do you own any cryptocurrency as part of a diversified portfolio, and why have you made that choice? Discuss with friends and family, or become a member to read what other Fools are sharing!
