U.S. benchmark oil prices edged lower Wednesday, pressured after official data from the Energy Information Administration revealed a larger-than-expected weekly rise in U.S. crude supplies.
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The stock rose another 35% on Friday after Germany voted to decriminalize cannabis.
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In an unprecedented surge, global crypto investment products experienced a historic influx of $2.7 billion last week, signaling strong confidence among investors and propelling assets under management (AUM) back to December 2021 levels. Record $2.7 Billion Flows Into Crypto Investments in a Historic Week The record-breaking week saw digital asset investment vehicles garner inflows of […]
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Higher mortgage rates continue to hit demand from both current homeowners and potential homebuyers.
Total mortgage application volume dropped 5.6% last week from the previous week, according to the Mortgage Bankers Association’s seasonally adjusted index. An additional adjustment was made to account for the Presidents Day holiday.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($766,550 or less) decreased to 7.04% from 7.06%, with points increasing to 0.67 from 0.66 (including the origination fee) for loans with a 20% down payment. The rate was about a quarter percentage point higher than it was one year ago.
As a result, applications to refinance a home loan were 7% lower than the previous week and were 1% lower than the same week one year ago.
“Higher rates in recent weeks have stalled activity, and last week it dropped more for those seeking FHA and VA refinances,” said Mike Fratantoni, MBA’s chief economist, in a release.
FHA and VA loans are generally used by lower-income borrowers because they have lower down payment requirements.
Applications for a mortgage to purchase a home dropped 5% for the week and were 12% lower than the same week one year ago.
Fratantoni noted, however, that mortgage demand from buyers looking at newly built homes jumped 19% year over year in January.
“This disparity continues to highlight how the lack of existing inventory is the primary constraint to increases in purchase volume. However, mortgage rates above 7% sure don’t help,” he added. Rates were in the 6% range for all of January.
Mortgage rates moved higher again to start this week, according to a separate survey from Mortgage News Daily. The 30-year fixed is now matching the highest level since early December 2023.
“There were no interesting or obvious catalysts for the move, nor would we expect there to be when it comes to the level of volatility seen on almost any day of the past 2 weeks,” wrote Matthew Graham, chief operating officer at Mortgage News Daily.
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Based on the most recent international standings and weekly figures, sales of non-fungible tokens (NFTs) have surged by 17.66% in the past week, amassing slightly more than $306 million in sales. This uptick marks a jump from last week’s 16.8% rise in NFT sales, with the leading blockchains in terms of volume — Ethereum and […]
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Ethereum (ETH), the world’s second-largest cryptocurrency by market cap, has seen a significant exodus from centralized exchanges in recent weeks, with data suggesting a growing preference for holding the asset outside of trading platforms.
At the time of writing, ETH was trading at $2,289, down 0.7% in the last 24 hours, but managed to gain 1.6% in the last week, data from Coingecko shows.
Ethereum Outflow Hits $1.2 Billion
According to blockchain analytics firm IntoTheBlock, a staggering $500 million worth of ETH exited exchanges last week, contributing to a total outflow of $1.2 billion for the entire month of January. This represents a major shift compared to previous months, raising questions about the motivations behind this trend.
$500M in $ETH was withdrawn from CEXs this week, adding to a total of over $1.2B in outflows in the last month pic.twitter.com/e8NFOGtrDV
— IntoTheBlock (@intotheblock) February 2, 2024
CryptoQuant data paints an even starker picture, showcasing a dominant pattern of outflows since the beginning of January. The chart reveals a persistent decline in exchange holdings, with the last inflow recorded on January 30th. At the time of writing, the outflow continues unabated, with over 3,000 ETH leaving exchanges every hour.
However, the impact on overall exchange supply is not entirely uniform. While the total amount of ETH held on exchanges initially increased in January, reaching around 10.7 million by mid-month, it subsequently dipped to 10.3 million by January 28th. Currently, the supply has resumed an upward trend, sitting at around 10.6 million.
Binance ETH Exodus: Investors’ Strategic Moves
Interestingly, the historical balance of ETH on Binance, the world’s largest cryptocurrency exchange, tells a different story. Despite the overall uptick in exchange holdings, Binance has witnessed a consistent decline in its ETH balance throughout January. From a peak of over 3.9 million ETH on January 23rd, the balance has shrunk to around 3.7 million, indicating that users are actively withdrawing their Ethereum from the platform.
Ethereum currently trading at $2,288.5 on the daily chart: TradingView.com
While the exact reasons behind this trend remain unclear, several possible interpretations emerge:
- Increased Investor Confidence: Moving ETH off exchanges could signal a growing sentiment among investors to hold the asset for the long term, potentially driven by confidence in its future potential. Additionally, some investors might be transferring their ETH to DeFi platforms for staking or yield farming opportunities.
- Market Uncertainty: The recent outflows could also reflect broader concerns about market volatility or potential regulatory changes, prompting investors to seek safer storage for their holdings.
- Binance-Specific Dynamics: The decline on Binance might be due to factors specific to the exchange, such as user preferences for alternative platforms or changes in its trading fees or policies.
Featured image from Adobe Stock, chart from TradingView
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
The labor market continued to show surprising resiliency in the early days of 2024, with initial jobless claims posting an unexpected drop last week.
Initial filings for unemployment insurance totaled 187,000 for the week ended Jan. 13, the lowest level since Sept. 24, 2022, the Labor Department reported Thursday. The total marked a 16,000 decline from the previous week and came in below the Dow Jones estimate of 208,000.
Labor strength has persisted despite attempts by the Federal Reserve to slow the economy, and the jobs market in particular, through a series of interest rate hikes. Central bank policymakers have linked the supply-demand mismatch between companies and the available labor pool as an ingredient that had sent inflation to its highest level in more than 40 years.
Along with the drop in weekly claims came an unexpected decline of 26,000 in continuing claims, which run a week behind. The total for continuing claims hit 1.806 million, below the FactSet estimate for 1.83 million.
“Employers may be adding fewer workers monthly, but they are holding onto the ones they have and paying higher wages given the competitive labor market,” said Robert Frick, corporate economist at Navy Federal Credit Union.
In other economic news Thursday, the Philadelphia Fed reported that its manufacturing index registered a reading of -10.6 for January, representing the difference between companies reporting growth against contraction. While the number marked an increase from the -12.8 posted in December, it was still below the Dow Jones estimate of -7.
The Philadelphia Fed gauge showed a decline in unfilled orders, delivery times and inventories. The employment index improved somewhat but was still negative at -1.8 while the prices paid and received measures both eased from December.
A third report Thursday showed some optimism for housing: Building permits totaled 1.495 million, a monthly increase of 1.9% and a bit above the 1.48 million estimate, according to the Commerce Department. However, housing starts totaled 1.46 million, a 4.3% monthly decline but better than the 1.43 million estimate.
The reports come a day after the Fed, in its periodic summary of economic conditions, reported mostly stagnant activity since late November.
According to the central bank’s Beige Book report, the economy broadly showed “little or no change in economic activity” during the period.
On employment, the report did note signs of a “cooling labor market,” with lower wage pressures. On housing, it said high interest rates were limiting activity, though the prospects of future easing from the Fed were raising hopes that the pace could accelerate.
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Cryptocurrency analyst Miles Deutscher has provided insights into potential altcoin opportunities as the crypto market experiences a sharp correction and many altcoins consolidate after recent gains. Deutscher’s analysis focuses on several altcoins that he believes could be poised for significant upside movement.
BTC, AVAX, And INJ Stand Out Amid Market Correction
Bitcoin (BTC), although not an altcoin but the largest cryptocurrency on the market, is one of the coins Deutscher mentions, noting that it is currently retesting the break of an ascending channel on the daily chart.
Deutscher suggests that the recent market correction was necessary to flush out over-leveraged positions and sees the price action as reminiscent of previous bull market environments.
Another altcoin that Deutscher highlights is Avalanche (AVAX), which he describes as one of the clear altcoin leaders. Despite the market downturn, AVAX quickly recovered from the dip, and Deutscher expects further continuation.
However, the analyst points out that the risk-reward ratio for AVAX is diminishing, and suggests considering other rotation plays that have not experienced a significant price appreciation.
Injective Protocol (INJ) is another standout performer mentioned by Deutscher. Despite the broader altcoin market downturn, INJ has remained in the green, showing a 17% increase over the past 24 hours. Deutscher praises INJ’s performance over the past few weeks and suggests accumulating on major pullbacks.
Deutscher also draws attention to Celestia (TIA), a coin that has displayed resilience during the recent market correction. The analyst notes the strong “Solestia” narrative surrounding TIA, with several significant projects set to launch soon, indicating potential insider interest.
Immutable X (IMX) is highlighted as a leading altcoin in the gaming sector. Deutscher mentions its push towards the next resistance level at $2.60 and emphasizes its strong fundamentals, with over 400 games launching on the platform.
PrimeDAO (PRIME) is one of Deutscher’s top gaming picks. The popularity of their game, Parallel, is growing, and the upcoming Coinbase listing for retail traders is viewed as a significant catalyst. Deutscher suggests that PRIME is currently in price discovery mode, and further upward movement would not be surprising.
Undervalued Altcoins To Watch
Moving on to altcoins that have not experienced as significant price appreciation, Deutscher mentions Sei Network (SEI) and Sui(SUI). Deutscher suggests that these two altcoins could potentially have their time to shine in the current market conditions.
Near Protocol (NEAR) is another coin that Deutscher believes could have a breakout moment. The analyst notes the lack of significant resistance on the way to $5, indicating the potential for substantial price movement.
Deutscher also discusses Arbitrum (ARB), suggesting that people are considering it as a potential rotation play. Deutscher speculates that the launch of a meme coin and the upcoming Coinbase Futures listing of Arbitrum could attract liquidity and initiate a mini Layer 2 (L2) season.
Within the Solana ecosystem, Deutscher highlights the recent airdrops of Pyth Network (PYTH), Juggernaut (JTO), and Jupiter (JUP). Deutscher mentions the buzz surrounding airdrop farming and suggests that opportunities may still exist within the ecosystem.
Deutscher concludes by mentioning Frax Share (FXS), noting the upcoming halving, the launch of Fraxchain in Q1 2024, and the potential release of frxETH V2. Deutscher believes that FXS is currently undervalued and hints at the possibility of a future airdrop.
Featured image from Shutterstock, chart from TradingView.com
Disclaimer: The article is provided for educational purposes only. It does not represent the opinions of NewsBTC on whether to buy, sell or hold any investments and naturally investing carries risks. You are advised to conduct your own research before making any investment decisions. Use information provided on this website entirely at your own risk.
U.S. stocks closed higher Friday, with the Dow Jones Industrial Average scoring its longest weekly winning streak since February 2019, as investors digested the latest job report.
How stock indexes traded
-
The Dow Jones Industrial Average
DJIA
rose 130.49 points, or 0.4%, to close at 36,247.87, its highest closing value since Jan. 12, 2022. -
The S&P 500
SPX
gained 18.78 points, or 0.4%, to finish at 4,604.37, marking its highest close since March 29, 2022. -
The Nasdaq Composite
COMP
climbed 63.98 points, or 0.4%, to end at 14,403. 97, scoring its highest closing value since April 4, 2022.
For the week, the Dow eked out a gain of less than 0.1%, the S&P 500 edged up 0.2% and the Nasdaq advanced 0.7%. All three major indexes rose for a sixth straight week, according to Dow Jones Market Data.
What drove markets
U.S. stocks ended higher Friday as investors parsed a stronger-than-expected job report.
The U.S. Bureau of Labor Statistics said Friday that the economy added 199,000 jobs in November, while the unemployment rate fell to 3.7% from 3.9%. Economists polled by the Wall Street Journal had forecast that 190,000 jobs would be added in the month.
“It’s nice to see that a soft landing still can take place,” Yung-Yu Ma, chief investment officer at BMO Wealth Management, said by phone Friday. But the market had been getting “too optimistic” about potential interest-rate cuts by the Federal Reserve in the early part of next year, he added.
The job report is “perhaps a wash” for markets as “average hourly earnings growth came in a little on the high side,” Ma said. That could contribute to inflationary pressures and push a Fed pivot on rate cuts further out in 2024 than markets were expecting.
“The Fed can probably be patient for a while,” he said. Fed Chair Jerome Powell may “strike a bit more of a hawkish tone” after the central bank’s monetary-policy meeting next week, potentially pushing back against some of the enthusiasm for earlier rate cuts, Ma said.
Average hourly earnings rose 0.4% in November, up 4% year over year, the job report shows.
“Even though the headline 199,000 new jobs created is just slightly above consensus estimates for 190,000 new positions, the lower unemployment rate of 3.7%, coupled with higher-than-expected average hourly earnings, caused a jump higher in Treasury yields,” Quincy Krosby, chief global strategist at LPL Financial, said in emailed comments.
The yield on the 10-year Treasury note
BX:TMUBMUSD10Y
climbed 11.5 basis points Friday to 4.244%, according to Dow Jones Market Data. That’s below its high this year of about 5% in October.
Meanwhile, the stock market’s so-called fear gauge remained low, with the CBOE Volatility Index
VIX
declining to 12.35 on Friday, FactSet data show.
See: The VIX says stocks are ‘reliably in a bull market’ heading into 2024. Here’s how to read it.
In other economic data released Friday, the University of Michigan’s gauge of consumer sentiment rose to a preliminary reading of 69.4 in December, its first increase in five months. Inflation expectations also moderated, the university’s survey of consumer sentiment showed.
Such a big swing for a single reading of the survey is unusual, said Claudia Sahm, a former Federal Reserve economist who now runs a consulting business. “These data usually don’t move like that,” she said during a phone interview with MarketWatch.
Next week’s economic calendar will include a reading on U. S. inflation from the consumer-price index as well as the outcome of the Fed’s two-day policy meeting, scheduled to conclude Dec. 13.
Meanwhile, the S&P 500 notched a sixth straight week of gains, its longest such winning streak since the stretch ending Nov. 15, 2019, according to Dow Jones Market Data. The Dow Jones Industrial Average logged its longest stretch of weekly gains since February 2019.
Companies in focus
-
Lululemon Athletica Inc. shares
LULU,
+5.37%
jumped 5.4% after the company late Thursday called for lower-than-expected holiday-quarter figures, saying that is navigating an “uncertain” economy. -
Carrier Global Corp.’s stock
CARR,
+4.50%
rose 4.5% after the company announced the sale of its Global Access Solutions business to Honeywell International for $4.95 billion. -
Mullen Automotive Inc. shares
MULN,
-5.13%
dropped 5.1% after the electric-vehicle maker filed a lawsuit against a group of investors for allegedly using “spoofing” to manipulate its share price.
Steve Goldstein contributed.
Long U.S. bond yields edged lower Friday, with the 30-year Treasury rate logging its sharpest 4-week drop of the year, as recent data pointed to a slowing economy and investors braced for a shortened Thanksgiving holiday week.
What happened
What drove markets
Traders in longer U.S. government bonds took a breather Friday, after an explosive rally in the first half of November pushed yields down by more than 50 basis points from a 16-year high.
The…
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