This week’s price movements for bitcoin (BTC), gold, and our stock picks, Best Buy and Nvidia.
Bitcoin’s (BTC) week was a bit less tumultuous than the one prior, although it still struggled a bit. After falling below $30,000, then recovering back to $40,000 during the same day, on May 19, BTC pushed to nearly $43,000 the next day.
It floated above $40,000 into the next day, before dropping to $37,000. On May 22, it inched back up to $39,000, before tumbling to $33,000, over the course of May 23. However, from there, it managed to reach $40,000 the next day. Since then, it has been channeling between $37,000 and $40,000 where it is currently trading.
BTC’s recovery on May 24 can likely be attributed to another tweet from Elon Musk. On Monday, he said he had met with North American BTC miners who convened to discuss standardizing energy reporting on their mining activities among other things.
Musk called the meeting “potentially promising.” Meanwhile, billionaire hedge fund manager also spoke glowingly about BTC recently, which may have also contributed to its stability.
Gold has largely continued its upwards trend from the past few weeks. After spiking to nearly $1,890 from Federal Reserve news on May 19, gold’s price retraced down to $1,865. Gold’s price continued to see-saw upwards going into the weekend, opening around $1,885, on May 24.
It fell to $1,872 by the next day, but then strongly pushed upwards from there, reaching $1,910 by May 26. However, over the past day and a half it’s fallen to around $1,890, where it is now trading.
In this recent fall, gold was weighed down by upbeat U.S. data that showed a recovery in the world’s largest economy was on track, while rising U.S. Treasury yields further added pressure.
“The U.S. economy is on a solid trajectory for growth and the inflation argument has ebbed a bit because the Federal Reserve has had some success in convincing the marketplace that it is indeed just going to be transitory,” said Kitco Metals senior analyst Jim Wyckoff, adding:
“So it’s just a pause from the recent uptrends. However, we shouldn’t be surprised to see some bargain hunters step in to buy the dip in prices later in the session.”
The stock of American electronics retailer Best Buy (BBY) had an overall good week, punctuated by a selloff from its recent earnings report. On May 19, it was trading around $113, before pushing up to $115 by the end of the next day.
It seemed to favor this price point, sinking back down and hovering around it, after reaching above $116, on May 24. Perhaps in anticipation of its earnings report, BBY jumped up to $117. Finally, after earnings were announced, BBY traded almost as high as $123, before selling off. However, it is still trading higher than before, around $118.
Best Buy shares jumped 3.8% in the premarket, after the electronics retailer reported quarterly earnings of $2.23 per share, which beat the consensus estimate of $1.39 a share. Revenue and comparable-store sales also exceeded Wall Street forecasts and Best Buy raised its full-year comparable sales forecast.
Graphics-chip maker Nvidia (NVDA) had a spectacular week. On May 19, NVDA was trading just above $540, but by the end of the day it had made it above $560. It opened even higher the next day, above $570, immediately pushing past $580 and trickling up to $590.
On May 21, it opened above $600, around which it hovered the rest of the day. Opening after the weekend on May 24, it opened higher again, at nearly $610, immediately pushing up to $620. Over the next couple of days it channeled between there and $630. It is currently trading on the lower end, around $620.
Nvidia beat Wall Street’s targets for its fiscal first quarter on strong sales of gaming and data-center processors. The company earned an adjusted $3.66 a share on sales of $5.66 billion in the quarter ended May 2. Analysts expected Nvidia earnings of $3.28 a share on sales of $5.41 billion.
On a year-over-year basis, Nvidia earnings rocketed 103%, as sales jumped 84%.
“We had a fantastic quarter, with strong demand for our products driving record revenue,” Chief Executive Jensen Huang said in a news release. “From gaming, cloud computing, AI, robotics, self-driving cars, to genomics and computational biology, Nvidia continues to do impactful work to invent a better future.”