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For months, there has been news of mainstream businesses engaging in cryptocurrencies. In the past week, it has turned into a flood. And that helped push the price of Bitcoin to a new full-time level above $ 48,000 on Thursday. Rationale for investing in, or providing crypto services, covers a wide range.
The most interesting move came
Tesla,
announced Monday that it has purchased $ 1.5 billion worth of Bitcoin to keep its balance, and that it intends to allow car buyers to pay in Bitcoin. For Tesla, one big reason for the investment seems to be the enthusiasm of its boss, Elon Musk, for the product. He’s not the only tech leader who got into Bitcoin. Jack Dorsey has been advocating Bitcoin as the currency of the future, and now
Square,
one of the companies he runs has invested in it. His other company,
Twitter,
considering joining the band.
And the list grows.
Mastercard
said Wednesday it will start allowing businesses to accept some crypto payments, even if they are converted to standard currencies before they hit the register. On Thursday, BNY Mellon, founder of Alexander Hamilton, said it will maintain and move cryptocurrencies for customers, just as it does with other assets. Two major reasons: “growing consumer demand” and “regulatory clarity,” the bank said. Translation: hot crypto and the government doesn’t seem to care.
But not everyone is sold out. When an analyst asked Tuesday
General motors
to put pressure on Bitcoin, Chief Executive Mary Barra said, “We have no plans to invest in Bitcoin, so stop there.” But if buyers start pushing to pay in Bitcoin, she said, the company may consider it.
Next week
Monday 2/15
Stock and bond markets they are closed according to Presidents’ Day.
Tuesday 2/16
Energy technologies,
CVS health,
Devon Power,
Ecolab,
Occidental Petroleum,
Palantir Technologies,
Urras Vornado Realty,
and
Zoetis
release of employment.
The Federal Reserve The Bank of New York will release its Empire State Manufacturing Survey for February. Consensus estimates for reading eight, higher than the 3.5 figure in January. The January reading was at its lowest level since June, as the region’s manufacturing sector continues to grow, but at a slow pace.
Wednesday 2/17
Census Bureau reporting sales data for January. Consumer spending is expected to rise 1.3% month-over-month following a 0.7% decline in December. Excluding autos, sales are seen gaining 1.4%.
Analog machines,
Baidu,
Garmin,
Henry Schein,
Hilton Worldwide Holdings,
Pioneer Natural Resources,
Synopsys,
Shopify,
and
Twilio
announce quarterly results.
The Federal Open Market The committee will release the minutes of the monetary policy meeting at the end of January.
The National Society of Home Builders Releases NAHB /
Wells Fargo
Housing market index for February. Economists forecast a reading of 82, one point lower than the January 83 figure. The index is down slightly from the high of 90 set in November. Demand remains strong in the housing market, but homebuilders are worried about rising material costs, particularly timber prices, which have tripled since last April.
Labor Bureau Statistics release a producer price index for January. A 0.4% month-over-month increase is expected, just a second above the December gain. The main PPI, which excludes food and volatile energy prices, is seen gaining 0.2%, around even with December data.
Thursday 2/18
Applied Materials,
Ola & Gas Cabot,
LKQ,
Marriott International,
Newmont, Roku,
South Co.
,
Walmart,
and employment Administration reporting on employment.
Census Bureau reporting new build-up data for January. Economists predict that the annual rate of 1.65 million households will change quarterly, just below 1.67 million in December. The December figure was the highest annual housing rate starting from the 2006-07 housing market bubble.
Friday 2/19
Deere will hold a conference call to discuss quarterly results.
IHS Markit
reports both Manufacturing Purchasing Managers and Services indexes for February. Consensus estimates are for reading 59 for the manufacturing PMI and reading 57.8 for the Services PMI. Both figures are about even with January data.
Write to Avi Salzman at [email protected]