Podcast Summary
U.S. listed Ether ETFs: Despite a small intraday gain in Ether's price, most Ether tracking funds experienced losses upon their debut. Ether's benefits like smart contracts and DeFi make buying and reporting easier, but more money in crypto doesn't guarantee equal benefits for all.
The debut of U.S. listed spot Ether exchange-traded funds (ETFs) did not start off on a positive note, despite a small intraday gain in the price of Ether. Most Ether tracking funds, including the Grayscale Ethereum Mini Trust, Franklin Ethereum ETF, VanEck Ethereum ETF, Bitwise Ethereum ETF, 21Shares Core Ethereum ETF, Fidelity Ethereum Fund, iShares Ethereum Trust, and Invesco Galaxy Ethereum ETF, saw slight losses. These funds are offering fee waivers initially, often extending up to a year. Ether, the native cryptocurrency of the Ethereum blockchain, is known for its benefits like smart contracts and customizable applications for DeFi. Spot Ether ETFs will make buying and reporting easier due to liquidity and transparency, bringing crypto more mainstream and offering another opportunity for diversification. However, Paul Birdie, global blockchain leader at EY, cautions that more money into crypto and blockchain is not a rising tide that lifts all boats, citing similarities to the precious metals industry. While stocks are slightly higher, existing home sales dropped 5.4% in June, and the median existing home sales price increased to $426,000. BlackRock CEO Larry Fink has expressed support for Bitcoin, no longer considering himself a skeptic. Overall, the crypto market's growth is not guaranteed to benefit all players equally.
Earnings Reports: Companies reported varying earnings results, with some beating expectations and others missing due to labor costs and supply chain disruptions. The growing significance of technology in business operations was also highlighted.
Several major companies reported earnings this week with varying results. Coca-Cola outperformed expectations with strong sales and guidance, while UPS missed estimates due to increased labor costs. Philip Morris also beat expectations, but the Smoke-Free Business segment accounted for a larger percentage of revenue than expected. Delta Airlines continues to face operational challenges following last week's computer meltdown, and CrowdStrike's CEO will testify in Congress regarding the impact of the outage on the global economy. Overall, these reports highlight the importance of labor costs, supply chain disruptions, and the growing significance of technology in business operations. Investors will continue to closely watch these trends as earnings season continues. Coca-Cola saw a 12th consecutive month of year-over-year price gain and beat organic sales estimates, raising its full-year guidance. UPS missed expectations due to increased labor costs from a new contract, but expects revenue of $93 billion in 2024. Philip Morris beat earnings expectations, but the Smoke-Free Business segment accounted for a larger percentage of revenue. Delta Airlines continues to face operational challenges following a computer meltdown, and CrowdStrike's CEO will testify in Congress regarding the impact on the global economy. These reports underscore the importance of labor costs, supply chain disruptions, and technology in business operations.
AI funding, U.S. elections: Canadian AI startup Cohere raised $500M in series funding, valuing the company at $5.5B for tech expansion. U.S. equity market may hit bottom in Oct, affecting construction, trading, autos, financials, and small caps during elections
Canadian AI startup Cohere has secured a significant investment of $500 million in a series funding round, valuing the company at $5.5 billion. This funding will enable Cohere to expand its team and advance its enterprise-grade AI technology, promising productivity and efficiency gains for businesses worldwide. Additionally, according to Taiwan Securities, the U.S. equity market may reach a bottom in October before the U.S. elections. Potential beneficiaries of a Trump presidency, including construction equipment, trading houses, automobiles, financials, and small caps, may experience a pause during this period. This trend aligns with historical market behavior during U.S. presidential elections. Overall, these developments demonstrate the continued growth and investment in cutting-edge technology and the potential impact of political events on various sectors in the stock market.
