SEC Approves Spot Bitcoin ETFs; KB Home Reports Earnings Amid Stock Market Rally

New York City, NY – Dow Jones futures showed slight gains overnight, accompanied by S&P 500 futures and Nasdaq futures, ahead of the release of the CPI inflation report. Additionally, the Securities and Exchange Commission (SEC) has officially approved the creation of spot Bitcoin exchange-traded funds (ETFs). In other news, KB Home has reported its earnings.

The stock market rally on Wednesday saw modest gains as the major indexes moved closer to their 52-week highs. Leading the way were tech giants such as Microsoft, ServiceNow, Workday, MercadoLibre, and Howmet Aerospace, all of which showed buy signals. Notably, Microsoft is now poised to overtake Apple in terms of market capitalization.

Microsoft and ServiceNow stocks are both included in the IBD 50, while Microsoft and MercadoLibre stocks are listed in SwingTrader. Microsoft is also featured in the IBD Long-Term Leaders list, and ServiceNow, Microsoft, MercadoLibre, and Workday stocks are all part of the IBD 50. Workday, ServiceNow, and MercadoLibre stocks are additionally included in the IBD Big Cap 20. On Wednesday, Microsoft was designated as the IBD Stock Of The Day.

The Securities and Exchange Commission announced on Wednesday that it has approved rule changes allowing for the trading of spot Bitcoin ETFs. Eleven spot Bitcoin ETFs are set to begin trading on Thursday. The introduction of spot ETFs is expected to attract increased institutional support for Bitcoin.

Bitcoin’s price experienced a slight increase on Wednesday, reaching $45,954.49 by 5 p.m. ET. The cryptocurrency briefly peaked at $47,696.61 before settling around $46,500.

Following the news, Coinbase and Marathon Digital, both involved in cryptocurrency exchange and mining respectively, saw solid gains after hours. However, in Wednesday’s session, both stocks experienced minimal losses.

In pre-market trading, Dow Jones futures rose 0.15% compared to fair value, while S&P 500 futures and Nasdaq 100 futures climbed 0.2% and 0.35% respectively. The release of the December consumer price index data and weekly jobless claims by the Labor Department at 8:30 a.m. ET is expected to impact Dow futures and Treasury yields.

In other news, KB Home’s earnings report showed a modest beat, resulting in a slight decline in KBH stock during after-hours trading. However, shares rose 1.1% to 63.20 in Wednesday’s session, briefly reaching their highest levels in nearly 17 years. The surge in housing stocks towards the end of 2023, fueled by a decrease in mortgage rates, has contributed to this upward trend.

Economists are anticipating a 0.2% increase in the December consumer price index compared to November, with the annual CPI inflation rate expected to rise to 3.2%. Core CPI is forecasted to rise 0.2% month-on-month, with the core inflation rate dropping to 3.8%, the lowest since May 2021.

The stock market rally on Wednesday resulted in modest gains, with the Dow Jones Industrial Average rising 0.45%, the S&P 500 index climbing 0.6%, and the Nasdaq composite advancing 0.75%. The small-cap Russell 2000 also showed a slight increase of 0.1%.

While the overall picture remains bullish, analysts suggest a gradual approach to increasing exposure. Several stocks, including Microsoft, have shown buy signals, but caution against chasing these names as they are already becoming extended. Additionally, diversification of portfolios is recommended.

In conclusion, the stock market rally on Wednesday revealed modest gains, with tech megacaps such as Microsoft, ServiceNow, Nvidia, and Meta Platforms playing a significant role. The introduction of spot Bitcoin ETFs is expected to enhance institutional support for cryptocurrencies. The December consumer price index report is set to impact Dow futures and Treasury yields. Meanwhile, KB Home’s earnings report showed positive results, and economists anticipate a slight increase in the CPI inflation rate. Moving forward, investors should carefully consider diversification and monitor market trends to stay in sync with leading stocks and sectors.