Trump backs bitcoin, small caps rise: Asking for a Trend

On today’s edition of Asking for a Trend, host Josh Lipton breaks down some of the biggest stories and trends from the trading day.

Former President Donald Trump is scheduled to speak at the Bitcoin Conference on Saturday, July 27, despite previously calling the cryptocurrency a “scam.” BTC Inc. CEO and organizer of the Bitcoin Conference David Bailey explains: “Donald Trump is a businessman first and foremost, and he sees a good opportunity. And bitcoin is the greatest opportunity for this country.”

He calls the Biden administration’s sentiment toward bitcoin (BTC-USD) “horrendous,” and as the industry aligns with Trump, they are going to “send a message to the Democratic Party that that they’re on the wrong side of this issue. And that it would be much more productive for them to work with our industry rather than to banish our industry.”

Yahoo Finance senior markets reporter Jared Blikre breaks down some of the trends driving the market action on Tuesday. He focuses in on small caps stocks, which are tracked on the Russell 2000 (^RUT), as they have outperformed large-cap stocks on the Nasdaq 100 (^NDX) for five straight days. Meanwhile, Cyclical sectors, like industrials (XLI) and the homebuilder category (XHB), have also been surging within the last few 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 its estimated earnings, well above the Nasdaq 100’s (^NDX) multiple but well below the 10-year estimated earnings average.

Finally, Josh Lipton checks in on some of the stocks moving the most in after-hours trading as shares of Five Below (FIVE), Spirit Airlines (SAVE), and JB Hunt Transportation Services (JBHT) all slide lower

This post was written by Melanie Riehl

Video Transcript

Hello and welcome to asking for a trend.

I’m Josh Lipton for the next half hour.

We’re going to be breaking down the trends of today that I move stocks tomorrow.

There is a lot to keep track of.

So we’re focusing on what you need to know to get ahead of the curve.

Here’s some of the trends.

We’re going to be diving into another record day.

The Dow rallying 700 points for its best day in more than a year in the Small Cap Russell 2000 closes up 3%.

Bitcoin’s gains were far more muted from its Monday surge as investors up the odds of a crypto friendly Trump presidency.

But the broad market rally aside A I still one of the hottest trades on Wall Street server storage company, Super micro computer, which is rallied more than 200% in the past year is set to replace Wall and the NASDAQ 100 index later this month, we’re going to hear from the CEO later this hour and get those carts ready.

Story continues

It’s prime day, Amazon’s two day shopping.

Bonanza kicking off in a show of dominance for the E commerce giant shoppers are focused on deals.

But investors will look to Amazon growth and margins during the event and take a closer look in our chart of the day, Donald Trump affirming he will speak as scheduled at a Bitcoin conference coming up later this month, that’s after an assassination attempt over the weekend.

But the former president’s support of Cryptocurrency is relatively new.

Trump has previously deemed it a scam when he was in the White House.

But now the 2024 hopefully is singing a very different tune.

Thanks to the efforts of crypto industry insiders and join me now is David Bailey BT C INC CEO and organizer of the Bitcoin Conference.

David.

It is good to have you back on the show.

So Trump’s gonna be participating in the Bitcoin Conference.

Uh David, that’s July 27th.

How did that come about, David?

Well, first off Josh, thank you for having me back on the show.

And yeah, we’re thrilled to have the president speaking in what is going to be a historic speech on, on Bitcoin policy um and his, his agenda uh as of the new administration, uh We’ve been working with the Trump campaign for several months uh advising them on uh different policy uh platform items that our industry cares about our community cares about and really helping lay the case for the amount of votes and the amount of dollars that our industry can deliver for the campaign.

So, um we’ve been very thankful for their support.

Um Donald Trump is a, is a businessman first and foremost and he sees a good opportunity and Bitcoin is the greatest opportunity for this country.

So uh uh we’re, we’re very thankful to be partnered with him and Dave, you know, we know there.

Um Trump wasn’t always a fan of crypto what changed there, David?

Is it, is it what you suggested there or is it just, you know, has it come down to dollars and votes?

Yeah, I mean, I think uh for most people, they don’t start as a fan of Bitcoin, most people when they hear about Bitcoin, they think it’s a scam.

Uh That’s how I got started in Bitcoin.

That’s how Michael Saylor got started in Bitcoin.

In fact, Michael Saylor’s first tweet uh uh on the topic is, you know, once the government figures this out, they’re going to shut this down.

So, uh I think, you know, the biggest advo bits of Bitcoin start as the biggest skeptics.

And then, you know, they go through uh a journey where they come to understand the technology better, they come to interact with it more and eventually what seems like a scam at first uh uh eventually kind of uh hits home as, as fundamentally uh uh uh innovation that’s transformative.

And David, I, I know you’re a fan of Trump and from what I’ve read, um you’re gonna be hosting a fundraiser forum in Nashville.

Any concern though, David that, you know, we’re sitting here in July and Trump and Vance don’t win in November that Biden does any worries.

You would have that.

You know, maybe you put all your eggs here in one political basket.

Well, we are running a fundraiser for the president in Nashville.

We want it to be a record breaking fundraiser.

So we are working around the clock.

I’ve, I’ve been on phone calls all day for about two weeks straight, raising money for the president.

Um So we are, we are eager to show him what our industry is able to deliver and show him how much we care about this topic.

Um You know, our industry considers ourselves single issue voters, meaning that, you know, your policy on Bitcoin is what’s going to determine how we show up at the ballot box.

Uh Your question about, you know, are we worried about putting all of our eggs in one basket?

You know, the way the Biden administration has treated the Bitcoin and crypto community has been horrendous.

Um And what do you, what do you mean by that, David?

When you say horrendous, uh they have uh had the sec give um awful guidance uh uh jail or prosecute uh legitimate businessmen and entrepreneurs that are trying to build great technology businesses in the United States.

They’ve suggested um a tax regime for our industry that if implemented would, would devastate the American Bitcoin industry.

Um They’ve targeted Bitcoin miners claiming that, you know, they are fundamentally uh dangerous to the environment when in fact, Bitcoin miners are investing billions of dollars into America’s infrastructure and energy infrastructure.

Um The, the list goes on and the president actually just vetoed a bill that would have given us financial institutions the ability to custody digital assets on their balance sheet.

And so, you know, uh uh he, he’s, he’s holding back the, the, the our industry in the United States and he’s giving other nations a massive competitive advantage over um the state.

So, uh just to, just to, just to this is to play devil’s advocate.

Um could someone counter and give me, give me your take on this.

But at the end of the day, you know, spot Bitcoin ETF S got the green light.

Reportedly, you probably saw this David, you know, spot Ether ETF S are on the way.

What do you say to that?

We had to sue the SEC and, and do a multiyear fight against the SEC to get there, the, the spot ETF S should have been approved five years ago.

So, you know, if there, if there is one thing I would, I would say, I wish Trump had done differently in his last administration, he should have approved the spot ETF S. And so, um it’s been a nonstop fist fight with the Biden administration.

And so frankly, at this point, we feel like we don’t have much to lose um and what we hope is that by showing up for um the Trump administration and, and let me be clear, Bitcoin is, is bipartisan.

Bitcoin is a technology, it’s a tool.

Um You know, it, it does not have a political leaning or a prescribed political faction.

Um But uh uh I if, if you’re going to come after our industry, then, you know, our industry is going to defend itself.

And so what we hope is that by showing up big for the uh President Trump, by helping him win the White House, we’re going to send a message to the Democratic Party that, that they’re on the wrong side of this issue and that it would be much productive for them to work with our industry rather than to banish our industry.

You know, there are over 50 million Americans that own Bitcoin and other crypto cryptocurrencies that is a massive voter block.

And there used to be an old political adage that people vote their, their pocketbook.

Bitcoin is people’s pocketbooks today.

So the Democratic Party is, is aligned with the public and we’re hoping that by, you know, making ourselves heard um in this election, uh we’ll make ourselves heard in, in all the future elections as well.

It is impressive.

David, uh the way crypto has become an issue in this campaign in this, in this election, we always appreciate you coming on the show.

David.

Thanks so much.

Thank you for having me the S and P 500 Dow closed at a fresh record high with small caps shining bright Yahoo Finance’s Jared Blick joins us now with the takeaways of the trading day, Jared Josh, small caps are on fire.

We have never had a five day period where small caps outperform large caps.

And I’m talking about the Russell 2000 versus the SP 505 100.

We have never had that ever.

And I’m gonna show you a comparison.

This is uh the Russell 2000 is the NASDAQ 100 over the last five days.

You’ll notice that the NASDAQ 100 is negative.

Whereas the Russ Russell 2000 up 11.5%.

This just does not happen that often.

I really want to underscore that and it’s not just the small caps, it’s also the smaller large cap.

So you talk about the S and P 500 versus the 4 495.

This is the S and P 500 which is up 1.5 points.

But you, you compare it to its equal cap.

That’s where everything gets an equal vote.

That is up almost 5%.

So just a huge, huge uh break up by small caps here.

So small caps.

So we’re waiting for them to work, we’re waiting for them to work.

Now they are working.

Now, I have to ask you technical.

Let’s look at the chart.

I mean, do they now look, actually the small caps look over extended.

Now, you know, that’s, that’s a decent point.

That’s a fair point to raise.

Uh I was talking about the last five days, you know, you look at this up 11.5%.

That’s a big amount.

So, yes, I think temporarily you might see a little bit of a slowdown, but…