Breakfast News: Bitcoin Takes A Breather
November 25, 2024
| Tuesday's Markets | |
|---|---|
| S&P 500 5,969 (+0.35%) |
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| Nasdaq 19,004 (+0.16%) |
|
| Dow 44,297 (+0.97%) |
|
| Bitcoin $99,051 (+0.97%) |
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Source: Image created by Jester AI.
1. ‘Make or Break Monday’ for Bitcoin?
When Bitcoin (BTC -1.47%) rocketed after the election, pundits were quick to predict $100,000: It came within $350 of six figures on Friday, before falling back to as low as 95,763 on Sunday. Bulls believe today might be the day it cracks this psychological level. Others, however…
- "Consolidation around this level”: David Lawant at broker FalconX thinks we might have to wait before “a sustained breakthrough.” Bitcoin’s relative strength is above 70 now, suggesting it could be overbought and a selloff may be imminent.
- Top-ranked cryptoasset: Bitcoin is currently number one in our Cryptoball rankings, besting all 839 others for adoption, stability, and other notable categories.
2. Zoom Hoping to Boom Again
Zoom (ZM -0.68%) will post Q3 results after today’s closing bell. The company beat expectations last time round, though revenue and earnings gains were slow.
- “Zoom's AI offerings are promising”: At Q2 time, Fool analyst Emily Flippen reminded us that the AI space is crowded, and Microsoft’s (MSFT 0.52%) Teams is Zoom’s biggest competitor.
- Up 38% since 2019 IPO after a pandemic ‘boom and bust’: Emily stated in August that Zoom “could offer a decent risk-reward proposition for investors who believe its AI investments can accelerate long-term growth.” The stock has risen 45% since Q2 results.
3. Mortgage Duopoly Opportunity?
The mortgage giants known as Freddie Mac and Fannie Mae have risen by 63% and 41% respectively since the election, as investors hope one of Wall Street’s longest running conflicts might end soon.
- “Mechanically doable by 2027”: Mark Calabria, former director of the Federal Housing Finance Agency, thinks the time might have come to put the Federal Home Loan Mortgage Corporation (Freddie Mac) and Federal National Mortgage Association (Fannie Mae – we know how we’d rather refer to them, though) back in private hands, after they were taken under government control during the 2008 financial crisis.
- Swings and roundabouts: Selling off stock in the two mortgage giants could help reduce government deficit. But it could adversely affect the 30-year mortgages they fund.
4. What to Watch This Week
October’s Personal Consumption Expenditures (PCE) index print is set for Wednesday. A stall in the Federal Reserve’s preferred inflation measure, with core PCE expected to hit 2.8%, could cut hopes of a December interest rate cut.
- Four straight quarters of earnings beats: CrowdStrike (CRWD -0.34%) will post a Q3 update on Tuesday. Things appear back on track after July’s big internet outage, but it did show investors the kind of event that could go wrong for tech companies.
- Retail fortunes: Tuesday’s Q3 update from Best Buy (BBY -0.11%) comes after Target (TGT -0.74%) and Walmart (WMT 1.09%) revealed very different results last week. Analysts expect earnings to be flat.
5. Foolish Fun
Which stock are you giving thanks for this year? Discuss with friends and family, or become a member to hear what your fellow Fools are saying!
