The Daily: Bulls are back. SPY gains US$20 billion in a few days
• Aussie markets: ASX 200 ETF, VAS now worth about $18 billion again, 3% away from its record all-time high value.
• Stocks to watch: Google, Newmont, Paladin, Telix. ETFs SPY, VAS, URA
From YouTube
Markets are charging, SPY gains US$20 billion in few days. IBIT gains US$10 billion in 2 weeks
I am scared to say it, but the bulls are back. US stocks posted back-to-back gains of over 2%, with the world’s biggest ETF, the $SPDR S&P 500 ETF (SPY.US)$, which tracks the S&P 500, gaining US$20 billion in just a few days. Bitcoin jumped 7% in two days, moving back above US$93,000 for the first time in seven weeks. Meanwhile, the world’s biggest Bitcoin ETF $iShares Bitcoin Trust (IBIT.US)$ gained US$10 billion in value in two and a half weeks. Australia’s biggest ETF, $Vanguard Australian Shares ETF (VAS.AU)$ which tracks the ASX 200, is now worth about $18 billion again, just 3% away from its record all-time high value.
It’s clear the bulls are back in charge of markets. Even though the timing of a US-China deal is not in sight, the market’s fear gauge, the $CBOE Volatility S&P 500 Index (.VIX.US)$ , has fallen to its lowest level in almost four weeks. This means, for now, stock markets can go back to focusing on what they’re made of: companies growing their earnings and guiding for continued growth.
We’ve seen this in the US this earnings season, with 25% of S&P 500 companies (127 out of 500) having reported so far, delivering better-than-expected earnings and outlooks.
We’re seeing this theme play out in Australia too
Companies that are meeting or reaffirming their guidance, whether profits or revenue, are being rewarded with strong share price moves. Telix $Telix Pharmaceuticals (TLX.US)$ , for example, reported its revenue rose 62% and reaffirmed full-year guidance. Its shares rose 12.5%, now just 10% away from their record all-time high.
Australian Election watch. Critical minerals for the win
The Australian Labor Party says it will create a critical minerals reserve if it wins the election. So keep a watchful eye on one of the worlds biggest rare earths companies, and listed on the ASX LYC.
Meanwhile, be mindful of uranium companies on the ASX. They appear somewhat dying a slow death, with markets not believing the Liberal Party will win—or that its policy to bring in uranium power (like in the US) will come to life. So keep an eye on Paladin. $Paladin Energy Ltd (PDN.AU)$ rose 24% yesterday on saying it’s not materially been impacted by tariffs and achieved record production at its mine in Namibia. While the worlds’ biggest Uranium ETF $Global X Uranium ETF (URA.US)$ is also down off its highs. It is worth watching.
A final thought. Trim your wins and focus on quality companies
Though stocks are charging. For the most part, remember we’re 95 days into Trump’s second term reminds us that gains can vanish as quickly as they arrive. So consider trimming your wins, if that’s something that matters to you. Focus on quality companies with high, repeatable cash flows and those upgrading their outlooks, they’ll weather the storm.
Commodities
As at 10am AEST, the gold price was US3326.30 per ounce, up nearly 1%. Crude oil was at US$62.29 per barrel, up 0.03%. Iron ore was at US$100.35, up 0.11%, per tonne.
Cryptocurrencies
As at 10am AEST, Bitcoin was valued at US$93,699, down 0.1%, and Ethereum at US$1796, down 0.39%.
What’s ahead
• US companies to report today include Alphabet, Procter & Gamble, Merck, PepsiCo, Intel and T-Mobile. In Australia, ResMed and Liontown are among those reporting quarterly results. With Chalco and MMG among those reporting in Hong Kong
• Economic news out today include durable goods orders in the US and a bulletin from the Reserve Bank of Australia.
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Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Jessica Amir
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Kendadon1 : Wow, I wish my bank account grew as fast as IBIT’s “extra” $10 billion—turns out it only picked up about $4 billion, not a windfall worthy of Scrooge McDuck!
And Bitcoin’s all-time high isn’t a shy $93 k—it blasted right through $100 k back in December. Guess those “seven-week” amnesia goggles didn’t cover late-2024!
As for 127 S&P companies? More like 82 have RSVP’d with Q1 numbers—so let’s not start the after-party until the full guest list arrives.
In short: let’s vet the party favors before we toast!
Jamesjinlin : Such a large sum of trillions lost is forgotten so quickly, truly brainless.
151453268 witso : I’m feeling a green day today traders are happy again for now.
Jknight : Nice racks of info as always from Jess. My own take is whatever is non-tariff like Netflix will be golden for quite a while yet and I'm glad to be on that train for now. Hopefully reach outer space target of 1200 plus a stock split afterwards which is way overdue. That'll be a nice dream...
Ultratech Jknight : ya she's knowledgeable
Tonyco Jamesjinlin : Yeah, I'm not closing my SOXS yet... this feels like a bandaid on a knicked artery... gonna be bleeding alot soon