NEWS
Money Rotates From Tech To The Rest

With Nvidia shedding over half a trillion dollars in market cap over the last three days, rotation remains the name of the game. As a result, the Russell 2000 small-cap index and Dow 30 led today as money sought a new home. Let’s see what you missed. 👀

Today's issue covers crypto’s Mt. Gox concerns, Beyond Air cracking below $1.00, and a recap of another M&A-filled Monday. 📰

Here's today's heat map:

8 of 11 sectors closed green. Energy (+1.70%) led, & technology (-2.62%) lagged. 💚

Dallas Fed manufacturing activity ticked up in June but remained in contraction territory for the 26th consecutive month. Perceptions of broader business conditions continued to worsen, with the data suggesting small employment declines and shorter workweeks. 🔻

Target shares popped 2% on the news it’s working with Shopify to add sellers to its third-party marketplace and better compete with Walmart and Amazon. 🛒

Trump Media & Technology rose 21% after revealing that it expects to receive about $70 million in proceeds for the cash exercise of warrants late last week. The company could collect as much as $247 million in total proceeds if all the warrants are exercised. 💰

Roth MKM upgraded American movie theatre chain Cinemark from neutral to buy on the back of “meaningful box office improvement.” Interestingly enough, as its shares hit 2.5-year highs, AMC shares continue to melt lower despite strong initial turnouts for Disney’s “Inside Out 2” blockbuster. 🍿

Buy-now-pay-later stock Affirm found its footing after Goldman Sachs initiated it with a buy rating, saying it’s a leader in the modern credit space and citing its strong underwriting business. 💳

ResMed and Inspire Medical Systems slumped on news that Eli Lilly’s weight loss drug helped reduce the severity of obstructive sleep apnea, a critical market for the medical device makers. 😴

Alnylam Pharmaceuticals rose 35% after positive phase three study results for its drug vutrisiran, which treats patients with ATTR amyloidosis with cardiomyopathy. 💉

Planet Fitness shares pumped after TD Cowen named it a top small/mid-cap name, citing its catalyst path and upside to valuation and upgraded it to buy. 🏋️

Other active symbols: $CVNA (+5.76%), $ALT (+11.39%), $NNE (+32.68%), $MNKD (+6.26%), $SEDG (-13.58%), and $MLGO (+288.60%). 🔥

Here are the closing prices: 

CRYPTO
Bitcoin Cracks Amid Supply Concerns

The big story besides Nvidia’s fall today was the continued drawdown in the crypto market, where Bitcoin tumbled because of new supply concerns.

The long story short is that the victims of 2014’s Mt. Gox exchange disaster are finally being paid back ten years later…with many holders likely looking to sell some of their highly-appreciated assets. 🤑

Here’s the chart we shared a few weeks back highlighting Bitcoin’s waning momentum as prices tested the uptrend line from their October lows. Since then, prices have broken to the downside and accelerated toward their next level of support (the 200-day moving average) around 56-57k.

With momentum firmly in a bearish range now, it’s clear the near-term and intermediate-term trends are no longer up. As a result, risk appetite in crypto and crypto-related assets is likely to remain under pressure as investors and traders await a catalyst to turn things around. 🤷

And if you want more info on the Mt. Gox situation (courtesy of our resident crypto expert, Jonathan Morgan), here’s how the story begins…

Once upon a time, in the land of crypto, there was Mt. Gox. Handling 70% of all $BTC transactions, it was the king of the land - until someone forgot to lock the damn gate. What happened? 💥

Spoiler: it ended with a (short-term) disaster.

If that cliffhanger piques your interest, you can find the full thing in today’s Litepaper after you’re done reading here. 👍