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Morning Commentary

Bitcoin Grows Up

By Charles Payne, CEO & Principal Analyst
10/13/2017 9:48 AM
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It was an uneventful session on Thursday, although there werekey narratives. Perhaps it’s all muscle memory at this point; all the major equity indices reached all-time highs during the session, only to tumble into the close. There was no panic, but there’s a realization that the last round of earnings saw even big beats being greeted with selling.  

 S&P Sector Performance

% Change

Consumer Discretionary (XLY)


Consumer Staples (XLP)


Energy (XLE)


Financials (XLF)


Health Care (XLV)


Industrials (XLI)


Materials (XLB)


Real Estate (XLRE)


Technology (XLK)


Utilities (XLU)


S&P 500 Index



Financials slumped after earnings from JPMorgan & Chase (JPM) and Citigroup (C) raised red flags about consumers. 

• JPM loan loss provisions climbed $223 million from a year ago

• Citibank consumer business credit losses surged 26% from a year ago

After soaring in the weeks following the election, it’s been difficult for financial and big banks in particular. September was a good month as higher interest rates loomed; however, so much of the business revolves around trading that it seems these banks should get back to basics such as lending money to Main Street. 


The best performing S&P sector was industrials. The Dow Jones Transportation (DJT) hit an all-time high, led by truckers the day after President Trump spoke to drivers about the benefits of his tax plan for the industry.


Bitcoin Takes Center Stage 

The big winner of the day and the year was bitcoin, which rallied more than 10% yesterday and is up 438% for 2017. The cryptocurrency has been dissed by Jamie Dimon and shut out by China. Still, it’s been unstoppable. 

And yet, everyone agrees the blockchain technology behind these cryptocurrencies is revolutionary with the potential to eliminate online fraud and perhaps fiat currencies as well.   

I’m not long on bitcoin, but I am looking for ways to benefit from blockchain and cryptocurrencies. 

Today’s Session

The major indices are all up this morning.  Financials and healthcare (more later) however are under pressure.

Charles, Please ask those "bears" like Jeff Sica and the other "bear" you had on Varney this morning how are they making money for their clients if they are so negative on this market. I would like to know. I bet they will not tell you. It would be interesting to hear from some of their clients.

Jim Grier on 10/13/2017 10:26:50 AM
Ever notice bears are (still nice) smaller, in size, people? (especially head size) :O
And while I am at it, bulls are ah..... more attractive, ya, ya .... I like that. \:)

Donald J McArthur on 10/13/2017 12:08:53 PM
I was very impressed with your journalistic presentation during interviews and comments. Thanks for your neutrality. I am definitely a "deplorable" but my math major makes taught me to take a look at all possibilities. Keep up the good work.

Nedra Thomason on 10/13/2017 1:32:05 PM

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