The Daily Breakdown looks at the rally in Ripple, Stellar, and other cryptocurrencies. Plus, PepsiCo and Taiwan Semi earnings are out.
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Thursday’s TLDR
- XRP continues crypto rally
- TSM earnings boost AI stocks
- Charting NFLX into earnings
What’s Happening?
There’s a lot to focus on this morning, from crypto to earnings.
Starting with earnings, stocks like PepsiCo and Taiwan Semiconductor are in focus, with both stocks trading higher. Despite seeing lower demand for its products, PepsiCo beat on earnings and revenue estimates and maintained its full-year outlook.
As for Taiwan Semi, sales surged almost 40% and profits climbed more than 60%, with both metrics beating analysts’ expectations. Management also raised its 2025 revenue outlook, boosting investor confidence that the AI spending spree remains intact — giving a lift to other chip stocks, like Advanced Micro Devices, Nvidia, and Broadcom.
Leading in crypto this morning, Ripple is making another run to multi-month highs, tagging $3.30 this morning. It’s up 15% so far this week, after climbing 24.9% last week. Stellar is also in focus today, while Ethereum, Cardano, Hedera, and Solana are pushing higher too.
Crypto has started off Q3 with a bang. There’s a question of how long these names can run before they need to consolidate, but there’s no question which direction has the momentum right now.
Lastly, retail sales are in focus. At 8:30 ET, we’ll get the latest retail sales figures. Investors want to see a strong result, giving confidence to the idea that consumers remain resilient despite a seemingly never-ending stream of negative headlines.
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The Setup — Netflix
Netflix is set to report earnings tonight, an event that could trigger a large move in the stock. Shares recently hit record highs near $1,341 but have since pulled back over the last few weeks. Some investors might argue that the decline sets the stock up for a rally, while others might believe that more consolidation is needed with shares still up 40% so far this year.
If NFLX dips on earnings, bulls will likely want to see support come into play near two areas. First is the 50-day moving average, currently near $1,220. The second is around $1,175, which was resistance in early May, but support later in the month and in June. And if the stock rallies on earnings? Bulls will want to see an eventual return back toward the highs, followed by a potential rally above $1,340.
Options
One downside to NFLX is its share price. Because the stock price is so high, the options prices are incredibly high, too. This can make it difficult for investors to approach these companies with options.
In that case, many traders may opt to just trade a few shares of the common stock — and that’s fine. However, one alternative is spreads.
Call spreads and put spreads allow traders to take options trades with a much lower premium than buying the calls outright. In these cases, the maximum risk is the premium paid.
Options aren’t for everyone — especially in these scenarios — but spreads make them more accessible. For those looking to learn more about options, consider visiting the eToro Academy.
What Wall Street Is Watching
Shares of Lucid are surging this morning on reports that Uber will invest $300 million in the company as part of its robotaxi partnership. The two stocks have had very different paths, with LCID recently trying to stay above $2, while Uber recently hit record high.
Despite a continued rally in many popular cryptos this morning, Bitcoin’s price action remains subdued. BTC is down about 1% this morning and down a similar amount for the week. Bulls still have the momentum following last week’s breakout, but investors are wondering if it can continue to push higher. Check out the charts for BTC.
Disclaimer:
Please note that due to market volatility, some of the prices may have already been reached and scenarios played out.