Thursday, December 7, 2017, 11:08 AM, EST
- NASDAQ Composite +0.58% Dow +0.16% S&P 500 +0.21% Russell 2000 +0.85%
- NASDAQ Advancers: 1571 Decliners: 608
- Today's Volume (100 day avg) -3.8%
The market opened a little higher and is gaining momentum this morning with the Russell 2000 displaying strength and reversing yesterday's decline and then some. There is a good bit of back and forth on the tax bill but nothing specific; some talk that the corporate rate goes to 22% from 20% and the corporate AMT might go away after all. A potential shutdown of the Federal government as early as tomorrow doesn't seem to be a concern on trading desks, and otherwise news flow is limited. The sector view is mixed with consumer staples down 0.7% and industrials leading on the upside with a 0.7% advance. Crude oil is up about 0.6%, the dollar is higher for a 4 th day, treasuries are firmer, and gold is off 0.8%.
- Weekly unemployment claims posted its third consecutive decline with 236k new claims filed over the past week. Continuing claims fell to 1.908m, its first decline since early November. Both measures were generally in line with expectations and reflect a healthy employment market. Tomorrow comes nonfarm payrolls with analyst expecting a net gain of 195k new positions with the national unemployment rate holding near 17-year lows at 4.1%.
- Bitcoin continues skyrocketing, up over 18% today alone and is nearing $16,000 level for the first time. The WSJ writes today that about $70 million in bitcoins were stolen from Slovenia based crypto-miner NiceHash, raising questions about the supposed security of cryptocurrencies. Regardless, bitcoin is up over 60% just over the past week. Says the Chairman of RBS, "this is a very, very unusual market that shows we're not in a normal two-way trading market."
- Today Nasdaq welcomes two IPOs to the market: Quanterix Corporation raised $64 million and begins trading under QTRX and trades with a 10% gain; and Odonate Therapeutics raised $150m and trades under ticker ODT.
Technical Take :
Bitcoin's remarkable bull run is in full effect today with an intraday gain of more than 22%. Just one week into the month of December and bitcoin has a MTD gain of more than 69%, bringing its YTD return to 1,562%. The below price chart (weekly period) spanning the prior five years is presented in non-log scale. While the log scale is more appropriate, the non-log shows just how euphoric the price action has been. Years 2013 through mid-2016 are virtually unrecognizable despite 2013's record annual gain of +5,428%. With record all-time highs being made on a daily basis, there are no obvious price levels to point to as expected resistance. While the price appears to be headed "off the charts," bitcoin futures are expected to begin trading in the coming weeks. Institutions will now have the ability to short bitcoin futures, which might bring sellers into a market that has mainly seen one-way buying.
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Nasdaq's Market Intelligence Desk (MID) Team includes:
Michael Sokoll, CFA is a Senior Managing Director on the Market Intelligence Desk (MID) at Nasdaq with over 25 years of equity market experience. In this role, he manages a team of professionals responsible for providing NASDAQ-listed companies with real-time trading analysis and objective market information.
Jeffrey LaRocque is a Director on the Market Intelligence Desk (MID) at Nasdaq, covering U.S. equities with over 10 years of experience having learned market structure while working on institutional trading desks and as a stock surveillance analyst. Jeff's diverse professional knowledge includes IPOs, Technical Analysis and Options Trading.
Steven Brown is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq with over twenty years of experience in equities. With a focus on client retention he currently covers the Financial, Energy and Media sectors.
Christopher Dearborn is a Managing Director on the Market Intelligence Desk (MID) at Nasdaq. Chris has over two decades of equity market experience including floor and screen based trading, corporate access, IPOs and asset allocation. Chris is responsible for providing timely, accurate and objective market and trading-related information to Nasdaq-listed companies.
Annie O'Callaghan is Director on the Market Intelligence Desk (MID) at Nasdaq. Annie has worked for NASDAQ in a variety of roles including support of Nasdaq C-level management in client retention and customer service. Annie also served as a Sales Director in Nasdaq's Transactions Services business. Prior to joining Nasdaq, Annie worked at AX Trading, managing accounts for its Alternative Trading System and served on Credit Suisse's trading desk as an Electronic & Algorithmic Sales Trading Analyst.
Brian Joyce, CMT has 16 years of trading desk experience. Prior to joining Nasdaq Brian executed equity orders and provided trading ideas to institutional clients. He also contributed technical analysis to a fundamental research offering. Brian focuses on helping Nasdaq's Financial, Healthcare and Airline companies among others understand the trading in their stock. Brian is a Chartered Market Technician.