Mid-Month Market Review: Gold, Jobs, Nvidia, Crypto, and War

Found on Fraywire
These news articles were found on the Newswire at Fraywire.com
- Weekly jobless claims jump to 231,000, the highest since August
- Nvidia stands to benefit as Meta spurs an even greater AI spending spree
- GDP growth slowed to a 1.6% rate in the first quarter, well below expectations
- U.S. weekly jobless claims drop to lowest level since mid-February
- US to send new Ukraine aid right away, Biden says
- U.S. prosecutors seek 36-month sentence for ex-Binance CEO Changpeng Zhao
On Our Watchlist
- $META
- $BTCUSD
- $PANW
- $GD

Upcoming Events:

Tuesday, May 14, 2024
- Producer Price Index for April 2024
  The Producer Price Index (PPI) program measures the average change over time in the selling prices received by domestic producers for their output. The prices included in the PPI are from the first commercial transaction for many products and some services.
  Website: https://www.bls.gov/ppi/
Wednesday, May 15, 2024
- CPI for April 2024
  The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Indexes are available for the U.S. and various geographic areas. Average price data for select utility, automotive fuel, and food items are also available.
  Website: https://www.bls.gov/cpi/
Thursday, May 16, 2024
- Initial Jobless Claims
  Initial claims are new jobless claims filed by U.S. workers seeking unemployment compensation, included in the unemployment insurance weekly claims report. The report, published since 1967, includes a separate count of workers receiving unemployment insurance benefits, known as continuing claims.
  Website: https://www.dol.gov/

These events were found using the Economic Calendar Widget on Fraywire.com

Found on Fraywire:

Weekly jobless claims jump to 231,000, the highest since August

Jobless claims totaled a seasonally adjusted 231,000 for the week ending on May 4, up 22,000 from the week before.
It was the highest claims number since late August 2023.
Continuing claims, which run a week behind, increased to 1.78 million, up 17,000 from the previous week.

Gold is overvalued now and won’t help you beat inflation in coming years

New research sees gold lagging U.S. inflation by more than 7% a year over the next decade

Federal Reserve holds rates steady. Here’s the financial impact

Federal Reserve officials said they are leaving their benchmark rate untouched, noting that progress in taming U.S. inflation has stalled.
The Fed on Wednesday said it is keeping the federal funds rate in a range of 5.25% to 5.5%, the same level it has held since the central bank’s July 2023 meeting, which is its highest level in more than 20 years. Economists had largely expected the decision given that inflation had ticked upward in the first three months of 2024.

Nvidia stands to benefit as Meta spurs an even greater AI spending spree

Meta boosted its capital-expense forecast which could prompt other companies to do the same

GDP growth slowed to a 1.6% rate in the first quarter, well below expectations

Gross domestic product, a broad measure of goods and services produced in the January-through-March period, increased at a 1.6% annualized pace, below the 2.4% estimate.
The personal consumption expenditures price index, a key inflation variable for the Federal Reserve, rose at a 3.4% annualized pace for the quarter, its biggest gain in a year.
Consumer spending increased 2.5% in the period, down from a 3.3% gain in the fourth quarter and below the 3% Wall Street estimate.

U.S. weekly jobless claims drop to lowest level since mid-February

Claims fall 5,000 to 207,000 in latest week

US to send new Ukraine aid right away, Biden says

US President Joe Biden has signed a $95bn (£76bn) package of aid for Ukraine, Israel and Taiwan.

U.S. prosecutors seek 36-month sentence for ex-Binance CEO Changpeng Zhao

U.S. prosecutors on Tuesday recommended an above-guidance, 36-month sentence for former Binance CEO Changpeng Zhao.
Zhao should serve a higher sentence than suggested under advisory guidelines to “reflect the gravity of his crimes,” prosecutors said.
Zhao stepped down as Binance’s CEO in November last year after reaching a plea deal with the U.S. Department of Justice.
Read More: “How CZ’s ‘Good Guy’ Reputation Secured 4-Month Prison Sentence” https://www.fraywire.com/portal/bookmark.php?id=866782175

Bitcoin Tumbles Below $60K, Risking Deeper Pullback as Crypto Markets Endure Worst Month Since FTX Crash

Bitcoin has lost over 16% in April, on track for its worst month since November 2022.
BTC could drop to the mid-to-low $50,000 region, Ledn CIO said.
The Hong Kong spot crypto ETF debut wasn’t as poor as it was made out to be, a Bloomberg Intelligence ETF analyst noted.

On Our Watchlist:

$META

Despite strong earnings, $META dipped ~15% overnight after Mark Zuckerberg spent the majority of the Meta earnings call discussing more investments into the “metaverse”
Despite Meta sinking billions into metaverse R&D, the company remains profitable and exhibited a decent recovery after the drop

$BTCUSD

Bitcoin continuing crabbing price action in the parallel channel in what could be a bull flag or, on a higher time frame, a cup and handle formation.
“As a stock forming this pattern tests old highs, it is likely to incur selling pressure from investors who previously bought at those levels; selling pressure is likely to make price consolidate with a tendency toward a downtrend trend for a period of four days to four weeks, before advancing higher. A cup and handle is considered a bullish continuation pattern and is used to identify buying opportunities.” – Investopedia
Bitcoin has surged over ~300% from 2023 lows and another move up will affirm a continued bull run for the cryptocurrency

$PANW

Palo Alto Networks up ~10% from recent lows
Palo Alto Networks, Inc. engages in the provision of network security solutions to enterprises, service providers, and government entities. It operates through the following geographical segments: the United States, Israel, and Other Countries.

$GD

General Dynamics up ~35% from the start of both Russia/Ukraine and Israel/Palestine Wars.
War is profitable
Lockheed Martin and RTX are lagging behind

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Your investment strategies could differ from mine based on your risk tolerances, research, and time horizon, so I encourage you to do your own research as information provided by The Rebel Economist, Fraywire, or Breaking Metrics should never be considered financial advice.