The U.S. third-quarter earnings season gets underway today, with reports from Goldman Sachs, JPMorgan and UnitedHealthcare among the major releases. Markets are also looking ahead to Thursday’s key September Consumer Price Index (CPI) report.
Wells Fargo chief says consumers and businesses remain in good shape
Wells Fargo (WFC) CEO Charlie Scharf said the bank’s customers continue to show resilience as the company announced its third-quarter financial results.
“Our data shows that our consumer and business customers are doing well,” Scharf said.
He pointed to stronger consumer spending, low levels of loan delinquencies and growth in deposit and investment balances as signs of continued economic strength.
Businesses are also maintaining healthy balance sheets, while losses remain limited, he said. Although high interest rates, elevated oil prices and persistent inflation present potential challenges, Scharf believes investment in AI infrastructure, solid employment and steady wage growth are providing stronger support for the economy.
Wells Fargo shares slipped slightly in premarket trading after earnings per share exceeded analyst expectations but revenue came in below forecasts.
Cipher Digital shares slide 13% on convertible debt plan
Cipher Digital (CIFR), which has transitioned from Bitcoin mining to data center operations, plans to raise $850 million through convertible notes maturing in 2032. The notes will carry a zero-percent coupon.
Following the announcement, Cipher Digital shares dropped approximately 13% in premarket trading.
Strive purchases another 3,311 Bitcoin
Bitcoin treasury company Strive (ASST), led by Matt Cole, acquired 3,311 BTC last week, bringing its total Bitcoin holdings to 32,773 coins.
The purchase, worth approximately $275 million, was funded through the sale of SATA preferred shares and proceeds from warrants exercised for the company’s common stock.
Strive shares have declined nearly 10% in recent sessions, partly due to the impact of warrant exercises. The stock was little changed in Tuesday’s premarket session.
Arthur Hayes challenges tokenization’s profit potential
Crypto industry veteran Arthur Hayes questioned whether moving traditional financial assets onto blockchains can create sufficient commercial value to justify the growing enthusiasm around tokenization.
Hayes described transferring securities held through the Depository Trust & Clearing Corporation (DTCC) onto a blockchain and questioned how much money the process could ultimately generate.
While better recordkeeping may be useful, he argued that the tokenization industry still needs to demonstrate how it can produce meaningful profits.
Despite his concerns, Hayes indicated that investors could still join a market rally if prominent contrarian voices on Wall Street begin advocating token purchases.
Bitcoin’s recovery from its 50-day moving average signals buyer support, FxPro says
Bitcoin rebounded after a wave of stop-loss selling pushed its price down to around $81,000 during early Tuesday trading. The decline brought BTC back to its 50-day moving average, but buyers subsequently lifted the price toward $83,700.
Stop-loss orders automatically sell positions when prices reach predetermined thresholds. When large numbers of these orders are triggered simultaneously, they can intensify downward pressure. Bitcoin’s 50-day moving average tracks its average closing price over the previous 50 days and is commonly used to assess its medium-term trend.
Buyers defended this level on Tuesday, similar to last Thursday’s session, when Bitcoin bottomed near $80,400.
Alex Kuptsikevich, chief market analyst at FxPro, said the recovery demonstrated Bitcoin’s ability to rebound quickly after leveraged long positions are liquidated.
He suggested that Bitcoin could advance toward $85,000 and potentially revisit $87,000, the upper end of the previous week’s trading range, if the latest decline represents a healthy correction. The swift recovery may also signal renewed demand for risk assets, although other markets need to confirm the trend.
Bitcoin rebounds toward $84,000 while ZEC and HYPE lead altcoin losses
Bitcoin experienced a volatile 24-hour period, moving within a roughly $3,000 range. After falling to approximately $81,000 during early Asian hours, BTC surged above $84,000 before settling near $83,500 early Tuesday.
Altcoins recorded weaker recoveries. ZEC fell nearly 8% to around $1,210, making it the biggest loser among the highlighted assets. HYPE declined almost 6% to about $82, while SOL and DOGE each dropped approximately 4%. XRP lost around 3% to $1.36, and ether and BNB fell between 1% and 2%, according to CoinDesk data.
The Crypto Fear & Greed Index slipped to 57. The reading still indicated “greed” among market participants, but it was the lowest since September 18.
The downturn in semiconductor stocks also continued. Nasdaq 100 futures fell 0.5%, while an exchange-traded fund tracking chipmakers approached its sixth consecutive session of losses. Investors are questioning whether the current pace of AI investment can be sustained amid safety concerns and signs of mounting funding pressure.
JPMorgan shares dropped more than 2% in early trading after the bank released its results, opening the U.S. corporate earnings season. European equities performed better, with the Stoxx 600 gaining 0.4% as oil prices and bond yields declined.
Thursday’s U.S. inflation report is the next major event for investors, with the figures likely to influence expectations for Federal Reserve policy and the direction of financial markets.
