The Fed is still in denial, which is great news for gold and crypto investors.
Low bond yields, a weaker dollar, and growing inflation expectations are all pushing cryptos and gold up. Investors are looking for liquid assets, but they don’t want to hold bonds or dollars at negative real returns.
Gold surged past $1,900 per ounce (I have been calling for $2000 since January) while bitcoin broke $40,000, while Ether briefly broke $2,800.
It’s incredible that Fed officials are still trying to downplay inflation risks. Fed vice chair Richard Clarida said on Tuesday that the Fed can engineer a “soft landing” if prices continue to rise. Yeah, right.
The market is not buying it. Hedge fund investor Ray Dalio thinks we are nearing the collapse of the dollar as the world’s reserve currency. Time to prepare for what could come…
U.S. stock futures signal stocks could move higher today.
- S&P 500 futures: 4,184.65, +0.32%
- Nasdaq futures: 13,706.00, +0.36%
- DOW futures: 34,359.00, +0.26%
U.S. Dollar and Treasuries — Dollar slightly up and 10-year treasury yields dropped.
- U.S. Dollar Index (DXY): 89.76, +0.13%
- 10-year Treasury yield: 1.564%, from previous 1.608%
- 2-year Treasury yield: 0.150%, from previous 0.150%
Stocks To Watch
Cybersecurity firm Zscaler Inc. reported profits of 15 cents per share and revenue of $176.4 million, up 60% from last year. Analysts expected a profit of 7 cents and $163.7 million in revenue. The company also announced it is acquiring a Mumbai-based cybersecurity company Smokescreen Technologies. Zscaler offers online security tools for companies with remote workers.
Ford’s stock rose ahead of the company’s meeting with investors on Wednesday. Investors are expecting strong profits and more announcements regarding the company’s plans for electric and self-driving vehicles. Ford’s stock spiked 12.6% last week, following the release of its F-150 Lightning electric pickup truck.
Retail company Abercrombie & Fitch Co. reported earnings of that beat expectations. Adjusted earnings per share were 67 cents while the firm was expected to report a loss of 38 cents per share. Sales also outperformed expectations, $781.4 versus $687.0 million.
Nordstrom’s stock continues to fall after the company reported a higher-than-expected quarterly loss on Tuesday. The high-end retail company reported a quarterly loss of $0.64 per share, higher than the expected $0.53. Despite that, the company reported increases in sales and revenues, which gives some reason for optimism.
- ZS Zscaler Inc. $191.00, +10.57%, 59K (volume)
- F Ford Motor Co. $13.09, +2.19%, 1.8M (volume)
ANF Abercrombie & Fitch Co. $39.92, +4.91%, 38.36K (volume)
- JWN Nordstrom Inc. $34.07, -6.61%, 183.7K (volume)
Commodities To Watch
- Gold: $1,908.90, +0.57%
- BTC: $39,481.30, +5.87%
- WTI crude: $65.94, -0.20%
- ETH: $2,760.68, +9.80%