Good evening, ladies and gentlemen. Another week is in the books. 🤓 📚
The Nasdaq was the only index to close in positive territory. The Russell 2K fell the furthest – $RUT lost 0.52%.
The Labor Department announced Friday that the economy only added 235,000 jobs in August, a major disappointment. 720,000 more jobs were expected to be added. 😪
Bitcoin burst back through $50K and ticked an intraday high above $51K. Ethereum tacked on 3.5% to trade past $4K.
MongoDB, Inc increased 26.3% to all-time highs after exceeding earnings and sales expectations. $MDB closed over $500 for the first time ever. 🎉
Here are today’s quotes:
Jobs Report: COVID Slows US Economic Recovery
🚨 It’s that time of month again: JOBS REPORT TIME. 🚨
The total unemployment rate fell 0.2% in August to 5.2%. Fears of COVID’s delta variant inhibited this month’s gains. 👎
The total number of unemployed Americans fell to 8.4 million — jobless numbers remain above pre-pandemic levels, but below March/April 2020 highs. Hey, that’s some good news. 😅
Total nonfarm employment rose by 235,000 in August with monthly job growth averaging 586,000. That figure is still short of analysts’ estimates of 720,000 new jobs in August (compared to 1.1 million jobs added in June and 962,000 in July).
Slower hiring persists in sectors involving in-person interaction, but hiring in warehousing, manufacturing, and finance came in strong this month. 💪
The main cause of this month’s mid-recovery hiccup? According to economist Bernard Baumohl of the Economic Outlook Group, COVID’s delta prompted “The economy [to lose] some steam. Consumers are much more cautious about spending. A lot of businesses recognize this and are also willing to pull back on hiring.”
Stocks closed the day mixed. The jobs report could put a damper on the Fed’s September taper plans.
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The SEC + DeFi — Definitely Not a Love Story.
The U.S. Securities and Exchange Commission (SEC) is reportedly investigating Uniswap Labs, the startup behind the world’s largest decentralized exchange (DEX).
Uniswap Labs is the team responsible for Uniswap, a DEX, which is different than Coinbase or Binance in the sense that it doesn’t require an intermediary to complete trades. Instead, transfers can be made through the blockchain, without the intervention of a third party. Notably, Uniswap and other DEXes generally don’t collect personal information on users. That’s because DEXes don’t allow people to deposit FIAT currency; only crypto.
The SEC wants to know more about Uniswap operations. The Wall Street Journal reported, citing “people familiar with the matter,” that the enforcement attorneys are said to be seeking information about how investors use Uniswap and how it is marketed.
A spokesperson for Uniswap said that the company is “committed to complying with the laws and regulations governing our industry and providing information to regulators that will assist them with any inquiry,” as per the report.
Uniswap proactively restricted access to some tokens after U.S. regulators announced that they would scrutinize decentralized finance (DeFi) products. Uniswap’s decision was controversial among crypto users.
Lithium’s Battery-Powered Growth ⚡
One of America’s biggest lithium companies, Lithium Americas, took off this week. Shares of the stock rose over 10% on Thursday. Today, $LAC was cleared to begin mining at Thacker Pass, and its planned output will make Lithium Americas one of the largest lithium miners in North America. 💰 💰
However, Lithium America’s price action had less to do with their approval and more to do with an upgrade from analyst Cowen. In its report, Cowen explained that lithium’s demand would exceed supply. For the unacquainted, that means lithium might see a shortage in the near future.
Lithium has become a crucial component in the battery technology that powers your phone, electric vehicles, and other technology. Increased prices could make lithium companies a killing. 📈 🚀
Lithium’s rising prices have already been observed in China, where the price of battery-grade lithium carbonate has risen 38.8% in the last month. The resource hasn’t posted a single down day since June. Its rise preceded the boost in Seaborne Asian lithium prices. However, in Europe and the U.S., lithium prices have stayed “largely stable.” If Asia is any indication, that could easily change.
The Global X Lithium & Battery Tech ETF — which mostly invests in lithium & battery companies in China, the U.S., and South Korea — has risen 130% this year.
Weekly Candlesticks 🕯️
What a week. Here are a few notable weekly candlesticks:
The S&P 500 gained 0.58% and closed at all-time highs.
The Nasdaq closed at highs for the second week in a row.
The Russell 2000 rallied 0.32%, but still sits within a range from $209 – $234.
Ethereum erupted 22% and had its biggest week since the beginning of May.
Bitcoin broke back above $50K as the trend continues higher.
Apple ascended 3.6% to new all-time highs.
MongoDB, Inc made a monster move, climbing 28.7% to all-timers.
Real estate rampaged 4%. $XLRE closed at new-highs.
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