Good Morning, Zingernation! If you're one of those people who listens to everything but country, you might want to stay away from Top 40 radio — because this is the first time in more than 40 years that the top two songs in the country are both country. Billboard's Hot 100 is currently topped by Morgan Wallen's 'Last Night' and Luke Combs' cover of 'Fast Car.' If only I could buy shares of bro-country.
Also, consider these portfolio pick-me-ups: fractional shares of fine art, a crowdfunding platform seeking crowdfunding, and an AI antidote for the healthcare industry.
MARKET SNAPSHOT
🟡 Yesterday: Stocks closed mixed. The Dow ended slightly in the red while the S&P 500 and QQQ finished slightly in the green following a just-in-time rally near the close.
🟢 Today: Futures moved higher as Wall Street waits for data on inflation and economic growth.
📅 On Our Radar: We will get GDP (revision) as well as initial jobless claims ahead of the open. Happy trading!
Briefly: The US Federal Reserve released the results of its "stress test" to assess banks' capital resilience yesterday. With an unprecedented string of bank failures kicking off the year, the anticipation of the results tested Wall Street's stress, too.
The Results: A+! All 23 banks scrutinized in the Federal Reserve’s annual stress test, a mechanism put in place by the Fed to ensure that major banks are capable of supporting the economy during economic downturns, passed.
The Scenarios: This year’s test employed a hypothetical global recession with a 40% decrease in commercial real estate prices, a significant rise in office vacancies, and a 38% drop in house prices. The unemployment rate was also projected to increase by 6.4%, reaching 10%.
The Future: The central bank said the outcome of Wednesday’s stress test reaffirms the stability of the US banking system amid ongoing economic concerns. However, Fed officials emphasized the stress test is just one method to gauge the banks’ strength, and vigilance regarding potential economic risks should persist.
What It Is: Would you rather own a Warhol painting than a startup? Then Freeport might be the platform for you.
How It Works: Rather than buying shares of a company, you get shares of classic works of art, like the pop artist’s iconic pink print of Marilyn Monroe. You can even participate in the secondary market by selling your stakes on the Ethereum blockchain.
🖼️ What Next? For those interested in alternative and digital assets, Freeport is like any work of art: worth a look.
FIVE ZINGERS
🎁 Christmas In June: Kevin O'Leary said Bud Light is the gift that keeps on giving. Here's why.
🌊 Riding The Wave: Micron's stock jumped yesterday afternoon following a strong earnings report. Time to hop on the chip wave?
🐁 Mouse Loses a Bull: Entertainment giant Walt Disney is not inspiring enough confidence in this bullish analyst to continue recommending the stock at this juncture. Read about the downgrade.
⛴️ Out Of Troubled Waters: Cruise stocks are on the rise after getting beaten down during COVID. Read more here.
Briefly: Renowned businessman and US Global Investors CEO Frank 'Bulldog' Holmes appeared on Benzinga's PreMarket Prep show Wednesday morning. Here are some market forces he highlighted:
Airlines: "When you want to look at the overall economy in America and the globe, you want to look at JETS," he said, referencing the US Global Jets ETF, up 15.4% in the last month. "JETS is saying the economy is stronger than we think," he added. "It will maintain."
PMI: PMI is "very weak in China again," Holmes says, citing how copper, steel, and oil prices fell. But that's a silver lining for JETS. "Guess what's good for the airlines? Falling oil prices," Holmes said. "Not only is the consumer booking and paying full fare, the airlines are now getting this margin cushion with oil falling, so this is a very positive scenario for the overall industry."
Digital Transformation: Holmes, who is chair of Hive Blockchain Technologies, praised AI and chips from NVIDIA for being able to profit from cryptocurrency mining. By mining proof-of-work smaller coins, which have higher profit margins, Holmes converts them to Bitcoin "to pay the bills." AI "has been an important part of our growth," he added, calling the adoption of ChatGPT "unprecedented."
🤝 BENZINGA BUNDLE
Before you go, be sure to take a look at some of the opportunities below:
🖼️ The Artprice100 has consistently outperformed the S&P 500, especially in down markets. And while past performance does not guarantee future results, there's no doubt fine art investing has been a long-time staple of high value portfolios for a reason. It can generate value. Now, with Freeport, you can add fractional shares of classic works of art to your own holdings. Explore the gallery.
🏠 There are countless innovations to invest in on StartEngine. One of the most innovative: StartEngine. Yes, you can not only use StartEngine to discover and support unique startups — you can invest in StartEngine itself too. Join StartEngine's latest round, led by Shark Tank’s Mr. Wonderful, Activision's Howard Marks, and you.
This communication from Benzinga is for informational purposes only. It is not intended to serve as a recommendation to buy, sell, or hold any security and is not an offer or sale of a security. Information contained within should not be perceived as a research report and is not intended to serve as the basis for any investment decision. Any third-party views reflected herein do not reflect the opinion of Benzinga. All investments involve risk and the past performance of a security does not guarantee future results or returns. There is always the potential for financial loss when investing in securities or other financial products. Investors should consider their investment objectives and risks before investing. Benzinga is reader-supported. When you buy through links on our site, we may earn an affiliate commission. Benzinga may receive monetary compensation from the issuer, or its agency, for publicizing the offering of the issuer’s securities. This content is for informational purposes only and is not intended to be investing advice. This is a paid ad. Please see 17b disclosure linked in the campaign page for more information.
Benzinga, 1 Campus Martius, Suite 200, Detroit, MI 48226, United States, +1 877.440.9464