President Trump endorses Bitcoin, small caps rise: expect a trend
In today’s Asking for a Trend, host Josh Lipton breaks down the biggest news and trends of the trading day. Former President Donald Trump is set to speak at the Bitcoin Conference on Saturday, July 27, despite previously calling the cryptocurrency a “scam.” David Bailey, CEO of BTC Inc. and organizer of the Bitcoin Conference, explains that “Donald Trump is first and foremost a businessman who sees a good opportunity. And Bitcoin is the biggest opportunity for this country.” He calls the Biden administration’s sentiment on Bitcoin (BTC-USD) “terrible,” and says that as the industry aligns with Trump, “it sends a message to Democrats that they’re on the wrong side of this issue. And it would be much more productive to work with the industry rather than pushing it out.” Jared Brickler, senior market reporter at Yahoo Finance, breaks down the trends that drove Tuesday’s market action. He focuses on small-cap stocks tracked by the Russell 2000 (^RUT). These small caps have outperformed the larger Nasdaq 100 (^NDX) stocks for five straight days. Meanwhile, cyclical sectors like industrials (XLI) and homebuilding (XHB) have also surged in recent days. Market Domination host Julie Hyman breaks down Amazon’s (AMZN) falling multiple in Tuesday’s Chart of the Day. The stock is currently trading at 32 times forward earnings, well above the Nasdaq 100’s (^NDX) multiple but well below its 10-year average forward earnings. Finally, Josh Lipton checks in on the most active stocks in after-hours trading as Five Below (FIVE), Spirit Airlines (SAVE) and JB Hunt Transportation Services (JBHT) share prices fall. This article was written by Melanie Leal.