Big Week Ahead

1. Hottest News This Week

WHAT TO WATCH FOR THIS WEEK

📣 CPI READING

After a few months of high readings, investors are eagerly waiting for Wednesday's Consumer Price Index (CPI) release to see March's inflation.

In February, gas and housing prices pushed the CPI up, and the Producer Price Index (PPI) hinted that prices might stay high. The Fed's preferred inflation measure, the Personal Consumption Expenditures index, also rose. If inflation keeps going up, the Fed might hesitate to cut interest rates.

Throughout the week, Federal Reserve officials like Chicago Fed President Austan Goolsbee, Atlanta Fed President Raphael Bostic, and San Francisco Fed President Mary C. Daly will speak.

Investors will also look at Wednesday's FOMC meeting minutes for more Fed insights. On Tuesday, the National Federation of Independent Business (NFIB) will share small business survey results.

📣 EARNINGS SEASON

This week, all eyes are on the first quarter earnings reports of 2024, particularly Friday's bank earnings. Investors are eagerly anticipating JPMorgan Chase's results, hoping to see continued strong net interest income.

Meanwhile, Wells Fargo expects a slight decline due to projected Federal Reserve rate cuts. BlackRock's recent expansion into infrastructure adds intrigue to its report, while Citigroup focuses on expense management.

Delta Air Lines, Constellation Brands, WD-40, and Tilray Brands will also release earnings reports. Additionally, healthcare provider PACS Groups and UL Solutions are set to launch IPOs, adding to the week's financial landscape.

📣 TECH EVENTS

This week, the tech sector will be bustling with major events. Intel will host its Intel Vision event in Phoenix, Arizona, with a focus on "Bringing AI Everywhere." CEO Pat Gelsinger will discuss enterprise AI and future projects.

Meanwhile, Google Cloud Next will showcase AI-powered tools like Gemini assistant and Generative AI Studio. Additionally, DocuSign will hold its two-day Momentum24 event.

2. Matt Allen’s Corner

A LOOK INTO CRYPTO: WHAT ARE BITCOIN SPOT ETFS?

Hi Everyone! GRIT VIP is buzzing with new articles, specifically with content about crypto. Crypto, especially Bitcoin, has been the subject of news headlines for several weeks now. So, how can you up your game? 🫰 Learn more about it! Here is a sneak peek 👀 into a recent article titled What Are Bitcoin Spot ETFs?

Bitcoin Spot ETFs are like a bridge connecting traditional investing with the world of Bitcoin. Instead of buying Bitcoin directly, which can be complicated and risky, investors can purchase shares in a Bitcoin Spot ETF. This way, they invest in Bitcoin's price without owning the cryptocurrency. It's a more straightforward, regulated way to get involved in Bitcoin, handled through regular investment accounts.

Unlike other Bitcoin investments that might use futures contracts (essentially bets on Bitcoin's future price), Spot ETFs directly hold Bitcoin. This setup makes investing in Bitcoin more accessible to regular investors, offering the benefits of ease and security. However, there are still fees, like managing the fund and trading shares. 

The idea of Bitcoin Spot ETFs faced initial resistance from U.S. regulators, who worried about market manipulation. However, by January 2024, the U.S. approved its first Bitcoin Spot ETFs, making it easier and safer for more people to invest in Bitcoin.

How do they work?

Bitcoin Spot ETFs work by directly purchasing and holding Bitcoin securely, aiming to reflect Bitcoin's real-time market price. 

Here’s how they operate in simpler terms:

Buying Bitcoin: The ETF starts by acquiring Bitcoin from existing holders or cryptocurrency exchanges. This step is crucial for the ETF to have actual Bitcoin holdings that back the shares it offers to investors.

Secure Storage: Once purchased, the Bitcoin is stored safely, often using multiple security measures. This might include keeping it in an offline digital vault (cold storage), which helps protect against theft or hacking.

Issuing Shares: The ETF then issues shares to investors. These shares represent a piece of the Bitcoin holdings of the ETF. The share price is meant to mirror the current market price of Bitcoin, making it easy for investors to get involved in Bitcoin's price movements without directly buying the cryptocurrency.

Market Trading: Investors can buy and sell these ETF shares, like stocks, through regular stock exchanges. The goal is for the ETF's share price to track Bitcoin's actual market price closely.

To read the complete article, upgrade to GRIT VIP! 🚀 

Cheers,

Matt Allen

3. Comin’ Up

EARNINGS AND ECONOMIC DATA

💰 Earnings:

Monday: N/A

Tuesday: Tilray

Wednesday: Delta, Applied Digital

Thursday: CarMax, Fastenal

Friday: JP Morgan, Wells Fargo, BlackRock, State Street

📈 Major Economic Events:

Monday: N/A

Tuesday: N/A

Wednesday: Core CPI

Thursday: Initial Jobless Claims, Core PPI

Friday: Import Price Index

The author of this newsletter owns ETF’s (exchange traded funds) that may hold ownership interests in the companies discussed in this newsletter as of the published date of this newsletter.