월스트리트저널 구독 추천 - Trade Slump, Instacart IPO, Bitcoin ETF etc.

MONDAY, SEPTEMBER 11, 2023

 

◈ Corporate Earnings Estimates Edge Up

Wall Street expects corporate earnings to rebound after three quarters of year-over-year declines, a development that could put the stock market’s faltering rally on firmer footing.

When the next reporting season kicks off in earnest in October, analysts estimate that companies in the S& P 500 will show profits inched up 0.5%, helping deliver a 1.2% increase for all of 2023, according to FactSet.

That is in part because analysts lifted their estimates for the current quarter during its first two months, the first time that has happened since the third quarter of 2021, according to John Butters, senior earnings analyst at FactSet.

Climbing profits would be a welcome development after a period in which the stock market’s gains far outpaced anticipated profit growth. The S& P 500 has risen 16% this year, even after falling in four of the past six weeks.

 

◈ Trade Slump Reshuffles Cards in Favor of the U.S.

FRANKFURT—The U.S. economy is chugging along while the rest of the world falls behind. Driving the division among the world’s most powerful economies: a slowdown in trade that is hurting some much more than others.

The waning of global trade flows is consolidating a growth gap among members of the Group of 20 largest world economies, whose leaders are meeting this weekend in India, resetting the global balance of economic power.

At the losing end are “extroverted” economies that have traditionally recorded trade surpluses and are now seeing their growth lag behind those of the U.S. and India, for instance, vast markets that have historically relied more on domestic demand for growth relative to their peers.

 

◈ Instacart IPO Eyes Valuation Of $9 Billion

Instacart is targeting a valuation of roughly $8.6 billion to $9.3 billion in its imminent IPO, a fraction of what the grocery-delivery company was previously worth, in the latest sign of diminished investor enthusiasm for private growth companies.

Instacart is set to start marketing its long-anticipated initial public offering to investors as early as Monday and plans to disclose the expected valuation range then, according to people familiar with the matter. The San Francisco company’s plans could still change, and it is possible the range could move around as the company receives feedback during the roadshow.

The shares are expected to begin trading the following week on the Nasdaq exchange under the ticker CART.

 

◈ Case for Bitcoin ETF Trading Shifts

Investors have made a great deal of money betting that the Securities and Exchange Commission might finally approve an exchange-traded product that directly tracks the value of bitcoin. Yet now that such an approval appears even closer, making much more money might be trickier.

Among the best trades in crypto this year has been the narrowing gap between the price of bitcoin and the value of the $16 billion tradable vehicle that holds the digital currency, the Grayscale Bitcoin Trust. At times earlier this year, GBTC shares were trading at a 45%plus discount to the value of bitcoin backing the shares. Now, following an August court decision that the SEC must reconsider its rejection of an application to convert GBTC to an exchange-traded fund, the discount has narrowed to around 17%.

So it is natural to wonder if the eventual full closing of that 17% gap is easy money. The conversion of GBTC into an exchange-traded product would allow market makers to arbitrage the discount by redeeming the shares for underlying bitcoin, leading the two prices to converge.

But there are still potentially several steps along the way to conversion, even if that is where things are headed. The SEC is now in a 45day window in which it has to decide how to respond to the decision. Even if the agency doesn’t appeal, the court’s final order will give additional parameters regarding what the next actions might entail. The SEC said at the start of September that it will now give itself until mid-October to decide on a separate slate of spot bitcoin ETF applications.

 

2023.09.10 - [경제신문 읽기] - 월스트리트저널 구독 추천 - Coca-Cola, Tiny Bank's Financial , Tech etc.

월스트리트저널 구독 추천 - Coca-Cola, Tiny Bank's Financial , Tech etc.

 

오늘도 경제신문으로 세상을 봅니다.