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🐻 Bear Down
The bears officially come out of hibernation, Bitcoin dips below $65,000 and more
Charla Hojnacki
April 03, 2024
Happy Wednesday Zingernation! Bears typically enter hibernation in December and come out sometime in April. So I guess it makes sense that bearish traders came out of hiding and we’ve had two red days in a row to start the new quarter.
Smokey the Bear got smoked during Q1 but he made some money shorting $MO yesterday - the stock moved lower by more than 1% intraday. Winnie the Pooh’s portfolio was looking sweet after he bought puts in Honeywell which closed down about $2. And Dick Butkus had a nice short trade on Dick’s Sporting Goods, which - you guessed it - also closed lower on the day.
Also, check out this tech company helping make roads safer by disabling apps that distract drivers.
And, crypto is so back. Billions of dollars are flowing into the new Bitcoin ETFs, driving prices to near all-time highs. Join thousands of engaged readers of Future Finance - our FREE digital assets newsletter.
MARKET SNAPSHOT
Yesterday: Looked like an absolute bloodbath at one point, but stocks ended up closing well off their lows by the end of the day. Still, all major indices closed in the red in what was the worst trading day of the quarter so far.
On Our Radar: ADP employment will be out at 8:15 am ET and then we will hear from Jerome Powell at 12:10 pm ET, as well as some other Fed speakers scattered throughout the day.
TOP STORY
Basically: Just weeks before the Bitcoin halving, the world’s most popular cryptocurrency took a dip. Prices tumbled to a low of $65,480 yesterday, marking a decline of 5% in 24 hours and 8% over the past week.
Shakeout: This drop contributed to a significant shakeout in the crypto derivatives market, with $135.3 million in Bitcoin long positions being liquidated.
A Troubling Trend: With the Bitcoin halving event just 17 days away — a pivotal moment expected to cut block rewards from 6.25 to 3.125 Bitcoin — this latest price slide marks a concerning trend for the leading cryptocurrency.
Some Context: At the time of writing, Bitcoin traded around $65,580, reflecting a 5.6% decline over the past day and an 8% fall over the week. This period of uncertainty coincides with speculation around the U.S. Federal Reserve’s next move, with many expecting interest rates to remain high.
PRESENTED BY SAVERONE
SaverOne 2014 Ltd. (Nasdaq: SVRE) is making inroads with its technology that prevents people from accessing distracting apps while driving, announcing a big original equipment manufacturing win with IVECO, the brand of Iveco Group N.V. (EXM: IVG). Under the terms of the deal, IVECO will use SaverOne’s safety technology in its 2024 production of light, medium, and heavy commercial vehicles.
It's the latest in a string of deals SaverOne has inked and underscores the desire on the part of transportation companies to find ways to limit distracted driver accidents, which cost companies $60 billion annually. SaverOne’s technology, which automatically locates the mobile device in the driver’s area and prevents the driver from using messaging and other distracting apps, is already installed in over 4,500 cars, trucks, and buses and is integrated into fleets of more than 100 companies worldwide.
Other big wins for SaveOne include Volvo Bus Corp., the unit of Volvo Group (OTCMKTS: VLVLY), GB Tours, and Systems Logistics. As more companies look for solutions to prevent distracted driving and lower costs, expect to hear about more OEM deals for SaverOne. Click here to learn more about SaverOne’s technology.
FIVE ZINGERS
Intel shares slipped after the close yesterday as the company released a new financial framework for its foundry business.
Tesla’s stock closed down around 5% on Tuesday after the company reported worse-than-expected vehicle deliveries for Q1.
Cal-Maine Food’s stock traded higher after the bell yesterday following the company’s stronger-than-expected earnings report.
FedEx shares continued to move lower in yesterday’s session after Monday’s announcement that the company will not renew a contract with the USPS.
Dave & Buster’s stock shot higher after the bell following the entertainment company’s earnings report and buyback announcement.
ONE FOR THE ROAD
Briefly: The S&P 500 enjoyed a total return of 10.6% in the first quarter, following a robust rally in the final quarter of 2023, taking its cumulative gains since the end of September to 22.3%.
Quoted: “The S&P 500's current streak of gains is nothing short of historic,” said the Market Intelligence Team at Nasdaq in its quarterly review and outlook. “The first quarter marked the index’s second-consecutive quarter of double digit gains for only the ninth time since 1940. Historically, this has been a bullish signal, as the prior eight occurrences were all followed by positive 12 month gains.”
Tracking The Index: The SPDR S&P 500 ETF, which mirrors the S&P 500, posted returns of 10.1% in the first quarter and 22.3% across the past two quarters.
Lowered Expectations: Markets began 2024 expecting around six rate cuts over the year, with the first coming in March. However, persistently sticky inflation saw the Fed delay pulling the trigger. Now, those expectations have dwindled to three cuts, with the first likely not until July. Market participants have been impressed by the performance of the economy and the resilience of corporate earnings throughout Q1.
PRESENTED BY SAVERONE
SaverOne 2014 Ltd. (Nasdaq: SVRE) is making inroads with its technology that prevents people from accessing distracting apps while driving, announcing a big original equipment manufacturing win with IVECO, the brand of Iveco Group N.V. (EXM: IVG). Under the terms of the deal, IVECO will use SaverOne’s safety technology in its 2024 production of light, medium and heavy commercial vehicles.
It's the latest in a string of deals SaverOne has inked and underscores the desire on the part of transportation companies to find ways to limit distracted driver accidents, which cost companies $60 billion annually. SaverOne’s technology, which automatically locates the mobile device in the driver’s area and prevents the driver from using messaging and other distracting apps, is already installed in over 4,500 cars, trucks and buses and is integrated into fleets of more than 100 companies worldwide.
Other big wins for SaveOne include Volvo Bus Corp., the unit of Volvo Group (OTCMKTS: VLVLY), GB Tours and Systems Logistics. As more companies look for solutions to prevent distracted driving and lower costs, expect to hear about more OEM deals for SaverOne. Click here to learn more about SaverOne’s technology.