The Rundown - Ether ETFs Approved by SEC, Grocery Retailers Lower Prices

Episode Date: May 24, 2024

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Public.com presents the rundown, your daily market update in five minutes. My name is Zaid Mani, and today is Friday, May 24th. In today's episode, we talk about the SEC officially approving the Ethereum ETF and when we can expect them to start trading. Spoiler alert, it might not be for a while. And we might finally see some relief in our grocery bills as companies cut back to win back shoppers. And then stick around to the end of the show to learn which country has the highest adoption of Apple Pay. All right, let's go.

No. Well, stocks had another bad day on Thursday with the Dow, S&P, and NASDAQ all down across the board. Honestly, it had been a relatively quiet week with not much movement, and I thought that investors were just waiting for Nvidia earnings to come out before making moves. And I was right, except it didn't really play out as I thought, because Nvidia beat earnings and their stock jumped more than 8% as a result, and the last time that happened, the rest of the stock market went up with them. Not this time, though, because Nvidia just got tired of carrying the entire stock market on their back. But zooming out a bit, we've officially had 100 trading days of the year so far.

And the S&P is up more than 10%, which is the best 100 days since 2021, according to the Dow Jones market data. So this week might be headed for the red, but overall, it's still been a great year. Trying to end the week on a positive note, you know. Let's run through some headlines. Starting with Ethereum, because it's official, the SEC officially approved Ether ETFs on Thursday. And look, some are still surprised that this went through because up until this week, all signs were pointing to the not approving them, but I guess Gary Gensler changed his mind. Now, the price of Ethereum already spiked by more than 20% earlier this week on rumors that this would be approved. So we haven't

really seen any dramatic price changes to Ethereum now that it's official. In fact, the price has dipped a little bit. And, you know, it might take some time for these Ethereum ETFs to officially start trading. If you remember back in January, when the Bitcoin ETF was approved, there were Bitcoin ETFs ready to trade almost immediately. That's probably not going to happen for Ethereum, since each ETF issuer has to receive SEC approval for the respective ETF, which could take some time, even months, according to some industry experts. But a lot of the big name financial players are looking to launch their ether ETF, like BlackRock, Fidelity, and Invesco, just to name a few. So the ETFs aren't live yet, but once they are, you're going to be able

to buy them on the public app. Or I guess you could buy Ethereum directly on the public app today, if you prefer. Let's shift gears completely and talk about our grocery bills because they might finally be getting a bit cheaper. Companies like Walmart, Target, and Aldi's all recently announced price cuts to win over shoppers. Walmart said their rollback deals on specific items were up 45%. And Target announced on Monday that they reduced prices of 1,500 items and plan to cut more over the summer, including grocery items like milk and diapers, which is like 50% of my shopping list, so that's nice. Now Target is doing this because they're trying to get more people to buy groceries at their stores. Because let's be real, not many people

go to Target for groceries. Target is hoping by offering cheaper prices. They're going to win over shoppers. And even all these, which already has pretty low prices, is getting in on this. They announced price cuts on over 250 items like chicken, steak, and my personal favorite, frozen blueberries. Now, it's not just grocery stores that are getting in on the price cuts. Fast food companies are starting to drop prices as well. McDonald's and Burger King both announced that they're bringing back the $5 value menu. So as more and more companies start announcing price cuts, we might finally see some relief

on our bills and some relief from inflation. Corporations were very quick to raise prices a couple years ago because consumers, frankly, were willing to pay it. Seems like consumers have had enough, and these corporations are being forced to cut prices to win back shoppers. You love to see it. Let's talk about some stocks making moves today. Starting with Decker's Outdoors, the shares for the makers of Ugs and Hoka shoes are up

today after beating on first quarter earnings. Revenues were up 21% compared to a year ago and profits were up 39%. And no surprise, Hoka shoes made up a big chunk of that growth. Sales of Hoka were up 34% from just last quarter. And Ugs seem to be back in style again because sales of Ugs were up 15%. You know, I'll be honest, I've seen a lot of people wearing ugs and hokas lately, so I really shouldn't be surprised by these results. Decker's is feeling pretty good about themselves right now, and they even raise their guidance

for their fiscal year. Investors were loving it, and the stock is up more than 7% on this news. On the flip side, into it not doing so great this morning, shares of the tax software company are down today, even though they reported pretty solid first quarter results. They sold a ton of tax software as they beat on both top line and bottom line. And they even purchased over $500 million of their own stock and announced a dividend of 90 cents per share. So you would think all these things would make investors excited, right?

But no, investors were too focused on the soft guidance that Intuit had for their current quarter. Intuit expects sales and earnings to come in slightly lower than what analysts had expected for this current quarter. And like I always say, investors don't care what a company did in its past. Investors care about the future. And the soft guidance tends to overshadow a lot of good news. Intuit stock is down more than 6% in the pre-market.

All right, let's wrap the show with the fun fact. Today's fun fact is about Apple Pay, specifically in the UK. Apple Pay usage is the highest used in the UK, followed by Canada and the US, according to data from Statistica. I've been in the UK all week, and I noticed that Apple Pay and mobile wallets in general were everywhere, getting on the bus, getting on the train. I mean, even local mom and pop shops accept Apple Pay, which is pretty sweet. We just tap in my phone or my Apple Watch to pay for everything.

Not going to lie, I kind of wish the US had this everywhere. That's the fun fact for today, and I can back it up with personal experience. All right, guys, that's the rundown for today. Appreciate you guys hanging with us all week. Remember, Monday is Memorial Day and the stock market will be closed, so we won't have a show on Monday, but we'll be ready to pick things back up on Tuesday, and I will be stateside by then.

Appreciate everyone leaving reviews on Apple and Spotify, and thank you for everyone that's participating in our Spotify polls. The engagement on those polls have been awesome, so we really appreciate that. Have a great long weekend, and we'll see you guys back here on Tuesday. This is the rundown, your real-time resource for news events and trends in the markets. All views presented in this show reflect the opinions of the guests. You should not take any mention

of a publicly traded security as recommendation to buy, sell or hold that security. Rundown guests are not financial advisors and are not affiliated with public holdings or its subsidiaries. You should make your own financial and investment decisions or consult. Respective professionals. Learn more at public.com disclosures. In partnership with Zayidemani, brokerage services for U.S. listed, registered securities are offered by Open to the Public Investing Incorporated, member FINRA and SIPC.