/Bitcoin tops $30,000 as economy slows

Bitcoin tops $30,000 as economy slows

A sign for a Bitcoin ATM at a gas station in Washington, DC, USA, on Thursday, January 19, 2023.

To Drago | Mayor Bloomberg | fake images

This report is from today’s CNBC Daily Open, our new international markets newsletter. CNBC Daily Open brings investors up to speed with everything they need to know, no matter where they are. You like what you see? you can subscribe here.

Markets were mostly flat on Monday, although Bitcoin broke above $30,000. Investors are awaiting bank results and price reports.

What you need to know today

The bottom line

Markets in the US reopened on Monday but appeared to maintain a post-holiday sluggishness as investors digested multiple signs of a slowing but still strong economy.

First, while consumers felt credit was harder to come by in March, bank turmoil is subsiding. Charles Schwab said average daily outflows were down from February and the bank had added $53 billion of core net assets from new customers in March. That trend is consistent with the broader banking industry, according to Federal Reserve data. For the period ending March 29, deposits increased $42.3 billion without seasonal adjustment.

Similarly, while the tech sector was hit with some bad news, the storm clouds held a silver lining. PC shipments in the first quarter plummeted, but IDC believes the drop in demand allows companies to finish “reorganizing their plans” and improve their supply chains. In fact, Dell was up 2.98% and HP was up 1.54% on the news, although Apple fell 1.6%, likely because it experienced the steepest drop in shipments.

The same “bad news is good news” dynamic played out in the memory chip industry. Samsung’s plan to cut chip production helped push rivals Micron Technology and Western Digital up 8.04% and 8.22% respectively. There were too many chips flooding the market, analysts believe, and more limited supply is a good thing.

Outside of those industries, however, the major stock indices were largely unchanged. The S&P 500 rose 0.1%, the Dow Jones Industrial Average added 0.3% and the Nasdaq Composite declined 0.03%.

Investors await a number of economic indicators this week. On the earnings front, JPMorgan Chase, Wells Fargo and Citigroup report quarterly results. Traders will no doubt look closely at those reports, but they will also want to see what the US Consumer Price Index and Producer Price Index say about the economy if they reinforce last week’s jobs report and indicate that the economy isn’t overheating, the Federal Reserve may actually succeed in bringing markets to a legendary “soft landing.” Investors are keeping their fingers crossed.

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