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Futures

Wall Street's Exploration of Trump's Tariff Proposal

2024-11-26

Stock futures are in a state of flux this morning as investors delve into the significant tariff proposals put forth by President-elect Donald Trump last night. The Dow Jones Industrial Average (DJI) futures are down by 168 points, with added pressure coming from Amgen's (AMGN) roughly 12% premarket drop due to its obesity drug trial results. In contrast, the S&P 500 Index (SPX) and Nasdaq-100 Index (NDX) futures are showing a modest increase following yesterday's upward movement.

2 Risks for Bulls, per Schaeffer's V.P. of Research Todd Salamone

Investors need to be aware of two key risks for bulls as they navigate the current market. Todd Salamone, Schaeffer's V.P. of Research, has pointed out these risks. Firstly, the uncertainty surrounding the tariff proposals and their potential impact on various sectors could lead to increased market volatility. This volatility may cause investors to become more cautious and potentially sell off their holdings. Secondly, the global economic landscape is also a factor to consider. Any slowdown in global economic growth could further dampen market sentiment and pose a challenge for bulls.Secondly, the global economic landscape is also a factor to consider. Any slowdown in global economic growth could further dampen market sentiment and pose a challenge for bulls.

How Options Traders Doubled Their Money with This Telehealth Stock

Options traders have been making some interesting moves with a particular telehealth stock. Through strategic trading strategies and a keen understanding of market trends, these traders have managed to double their money. This success story highlights the potential opportunities that exist in the options market and how astute traders can capitalize on them. By carefully analyzing market data and using various trading techniques, these traders have been able to generate significant profits. It serves as an example of the kind of returns that can be achieved through active trading in the stock market.

Plus, 2 Retail Stocks Falling after Earnings

Two retail stocks have experienced a decline in value after reporting their earnings. Best Buy Co Inc (NYSE:BBY) stock is down 3.3% in premarket trading. The company announced worse-than-expected third-quarter results and lowered its full-year sales forecast due to the slowing demand for its electronics and appliances. This shows the impact that weak earnings can have on a stock's performance. Year to date, the equity is still up 18.8%, but the recent earnings announcement has caused some concern among investors.Another retail stock that has fallen is Kohl's Corp (NYSE:KSS). Shares of Kohl's are down 18.8% before the bell. The retailer's third-quarter earnings and revenue missed expectations. Additionally, Michaels CEO Ashley Buchanan is replacing the current CEO Tom Kingsbury, effective January 15. If the losses continue, KSS may drop to its lowest level since 2020. This highlights the challenges faced by retail companies in a changing market environment.

EV Stock Surges on Government Funding

Rivian Automotive Inc (NASDAQ:RIVN) stock is seeing a significant increase in electronic trading. The electric vehicle (EV) name has received conditional approval for a loan of up to $6.6 billion from the U.S. government. This news has boosted investor confidence in the company and led to a surge in its stock price. Heading into today, RIVN is down 50.5% year to date, but the government funding could potentially turn things around for the company. It shows the importance of government support in the growth of the EV industry and how it can have a positive impact on individual companies.

On Wednesday, futures tied to Canada's main stock index witnessed a modest increase. Investors were eagerly awaiting key U.S. inflation data later in the day to get a better understanding of the Federal Reserve's monetary policy outlook. At 6:10 a.m. ET (1110 GMT), December futures on the S&P/TSX index were up by 0.09%. This data-heavy day holds special significance as the focus is on the personal consumption expenditure index, which is the Fed's preferred inflation gauge and is set to be released at 10:00 a.m. ET. Traders anticipate a 63.5% chance of a 25-basis-point interest rate cut in December. Meanwhile, the minutes of the policy meeting on Nov. 6-7 revealed that Fed officials were divided on how much further they might need to cut rates and emphasized the uncertainty surrounding the direction of the economy. Other important economic indicators such as the second estimate for the third-quarter gross domestic product and weekly jobless claims figures are also due on this day.The heavyweight energy sector in Canada is likely to be influenced by oil prices. As markets evaluated the ceasefire deal between Israel and Hezbollah, oil prices stabilized. In the materials sector, gold prices rebounded after hitting a more than one-week low in the previous session, while the dollar weakened. Copper prices also showed an upward trend. [GOL/] [MET/L]On Tuesday, the composite index ended slightly lower due to concerns over Donald Trump's pledge to impose a 25% tariff on U.S. imports from Canada and Mexico, along with additional tariffs on China. Canada sends approximately 75% of its exports to the United States, including oil, and Trump has made it clear that he does not intend to exempt crude oil from his planned tariffs.In corporate news, Canadian fund Brookfield is planning to abandon its plan to take over Spain's Grifols (BME:GRLS), as per two sources familiar with the matter.Commodities:Gold: $2,648.21; +0.62% [GOL/]US crude: $68.89; +0.17% [O/R]Brent crude: $72.93; +0.16% [O/R]For Canadian markets news, click on the following codes:TSX market report (TO)Canadian dollar and bonds report [CAD/] [CA/]Reuters global stocks poll for CanadaCanadian markets directory($1 = 1.4051 Canadian dollars)(This story has been corrected to say ’10:00 a.m. ET,’ instead of ’08:30 a.m. ET,’ in 3)

Institutional players have shown a remarkable surge in their engagement with ETH. With CME Futures OI hitting a record high of $2.5 billion, it's clear that the interest in Ethereum [ETH] has been on the rise. This significant increase in institutional interest comes at a time when ETH is gaining ground against BTC. But the question remains: will this momentum be sustainable?

Unraveling the Future of ETH with Institutional Influence

November's Institutional Interest Surge

In November, institutional interest in Ethereum [ETH] more than doubled. Just before the Presidential elections in the United States on 4 November, the CME Futures Open Interest (OI) was 350,950 ETH. However, by the end of November, it had reached a record high of 662,600 ETH, approximately $2.5 billion. This sharp jump indicates a significant shift in the market dynamics.The growth in institutional interest is not just a one-time event. It shows a consistent trend over the past few months, with hedge funds adopting various hedging strategies. While this can bring stability to the market to some extent, it also exposes the asset to wild price swings accelerated by liquidations.

ETH's Closer Pursuit of BTC

On 25 November, the CME ETH Futures volume climbed even higher. This led to an increase in the ETH annualized basis, which is the premium hedge funds get when they buy U.S spot ETH ETFs and short ETH Futures. This trend has outpaced the BTC pattern since the U.S elections. As noted by Coinbase research analyst David Han, "CME ETH basis has recently expanded beyond BTC as well after trailing behind it for the past several months."This indicates that ETH is not just keeping up with BTC but is also showing signs of overtaking it. The ETHBTC ratio, which tracks the altcoin's relative performance to BTC, has also been on the rise. In fact, over the past seven days, ETH has attracted more flows, as evidenced by the nearly 15% hike in the ETHBTC ratio.This means that ETH has outperformed BTC over the past few days, especially during BTC's latest slump. However, for this trend to be sustainable, the ETHBTC ratio needs to decisively soar above the 50-day SMA (Simple Moving Average).

Price Predictions and Market Volatility

We saw a false breakout in early November, which led to ETH underperforming afterwards. Now, the question is whether this time will be different, with the ETHBTC ratio flirting with the 50-day MA. At present, ETH is valued at $3.4K, up 4% in the last 24 hours. The immediate targets for ETH are at $3500 and $3600.The market volatility surrounding ETH is a crucial factor to consider. While the increase in institutional interest is a positive sign, it also brings with it the potential for wild price swings. Hedge funds' hedging strategies can amplify these swings, making the market more unpredictable.However, despite the volatility, the growing momentum of ETH against BTC is evident. If this momentum can be sustained and the ETHBTC ratio breaks above the 50-day SMA, it could lead to further growth in the price of ETH.In conclusion, the current situation in the ETH market is complex and充满不确定性. While institutional interest is on the rise and ETH is showing signs of outperforming BTC, the sustainability of this trend remains to be seen. Only time will tell whether ETH can continue to climb the ladder of success in the highly volatile cryptocurrency market.