October 20, 2021

Markets:

Stock futures hugged the flat line Wednesday morning as investors eyed a batch of stronger-than-expected earnings results with increasing optimism over the trajectory of corporate profits, even in the face of ongoing supply chain constraints.

Bitcoin (BTC) prices hovered near $64,000 per share and closed in on an all-time high. The cryptocurrency held onto gains from earlier this week, after the first-ever Bitcoin futures exchange-traded fund, or the ProShares Bitcoin Strategy ETF (BITO), rose by nearly 5% in its public debut on the New York Stock Exchange on Tuesday.

Shares of Netflix (NFLX) fell in early trading despite posting third-quarter earnings and subscriber growth that exceeded Wall Street's expectations. United Air Lines (UAL) shares rose after the carrier delivered a smaller-than-expected quarterly loss and revenue that topped expectations, albeit while remaining some 32% below 2019 levels. 

The Fed’s Beige Book of economic conditions due at 2 p.m. Eastern on Wednesday will be one to watch, said Saxo Bank’s chief investment officer Steen Jakobsen. In a note to clients, he said investors should pay special attention to what the report says “about demand relative to the available supply of labor and parts, as well as the status of supply chains and logistics.”

Portfolio:

We enter the new trading session holding positions in FUBO, AEHR, HIVE, and ITRM.  It will be interesting too see how the markets react to the Fed’s Beige Book of economic conditions due at 2 p.m. today.  We will patiently wait and then proceed.  Please be ready for updates today as well as a potential new trade alert.