Markets Report: Week of October 25, 2021
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Updated Oct 27, 2021
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Halloween's nearly here, stocks were up on the week and earnings were largely positive. NFTs lost market share (except for fan fave CryptoPunks) while a pair of used shoes set a new record. Read on for more insights.
Stocks (S&P + 1.78%)
Stocks were up on the week with the S&P edging up 1.78% and the three major indices (S&P 500, Dow, Nasdaq) all posting their first consecutive winning weeks since early July. It's earnings season, and so far solid earnings reports have mostly countered inflation fears — according to CNBC, more than 80% of companies reporting have beaten estimates. Stay tuned this week, as 30% of the S&P reports earnings.
Real Estate (VGSLX +2.21%)
Real estate was up slightly on the week, with our tracking Vanguard index fund up +2.21%. In the world of commercial real estate, office space occupancy is decreasing (once again), while apartments, industrial space and retail space occupancy are all rising—COVID-19 trends that seem to be persisting. Accordingly, rents hit new highs for multifamily, industrial and retail properties, while office rents continue to decline.
Crypto (BTC +1.02%, SHIBA +44.83%)
Bitcoin was up slightly last week (+1.02%) after it roared to recent highs in the previous period, crossing $60k. In another sign of staying power for the currency, the first Bitcoin ETF (Proshares) that launched last week, already has more than $1 billion in assets under management (the second ETF, however, hasn't done as well). In the world of altcoins, Shiba hit an all time high then fell 10% after Elon Musk tweeted that he owns none of the coin (he claims to hold only Bitcoin, Ethereum and Doge).
Gold & Commodities (IAU +2.44%, WTI +1.54%)
Both gold (IAU +2.44%) and oil (WTI +1.54%) were up on the week, and analysts predict a continued surge in prices for the two commodities (for differing reasons). For gold, prices will likely rise as investors pile into the precious metal as a hedge against inflation, which some fear will be a long-term market force that's not currently being considered by central banks and consumer price indexes. For oil, the story for rising prices remains an issue of supply unable to meet growing demand.
Sports Cards (Basketball +2.70%)
Basketball (+2.70%), baseball (+0.46%) and hockey (+0.09%) were up on the week, while football (-1.92%) fell. Basketball was the biggest gainer, as tip off of the 2021-22 season last Tuesday accelerated market value increases for emerging stars. Bam Adebayo (+29.16%), Jaylen Brown (+18.68%) and Ja Morant (+15.35%) were among those with the biggest pops after strong opening weeks. On the losing side of the card, disappointing QBs drove some of the decrease in football's market share, with notable names like Dwayne Haskins (-11.93%) and Sam Darnold (-12.38%) losing value.
NFTs (Opensea -23.06%)
Trading volume for Opensea, the largest NFT marketplace, was down heavily on the week (-23.06%), while volume for CryptoPunks surged (+51.7%) as the project continues to gain prominence with both celebs and everyday investors. Notably, fractional investing platform Public dropped a CryptoPunk offering (#2142) open to retail investors last Monday. In other news, the traditionally stodgy fine art world is opening up to NFTs, with Sotheby’s investing in a $20M round into an NFT studio.
Sneakers & Streetwear
The big news in the world of sneakers and streetwear was the record-setting sale of Michael Jordan's game-worn rookie year shoes for $1.472 million at a Sotheby's auction. This represents a whopping +139% increase over the previous record for game worn shoes, Shattered Backboard Jordan 1s that sold for $615k in August of last year. Across the marketplace (StockX), the three most popular sneakers were adidas Yeezy Boost 350 V2 MX Oat (down 18.64% w/w), Nike Dunk Low Georgetown (up 5.59% w/w), and NikeDunk Low Retro White Black (up 0.37% w/w). Top prices for three pairs averaged $235.
In other news
- Wine: Research indicates that there's a growing preference for wine among all age groups, with revenue from the global market projected to exceed half a trillion dollars in the next few years.
- Startups: Ahead of the Glasgow climate summit, reports suggest that addressing climate change is top of mind for investors and tech startups. A key focus is on developing methods to accurately pinpoint carbon levels and mitigate future emissions.
- Farmland: An 80,000 acre cattle ranch in Texas is up for sale for the first time in over a century. The asking price? $200 million. Perks include gas and oil wells and rights to minerals on the land.