Trump Administration Axes Warning on Crypto in 401(k)s
50 minutes ago
The Department of Labor threw Biden-era crypto caution to the wind Wednesday, rescinding guidance that had called for employers to use “extreme caution” when including cryptocurrency-based options in retirement plans.
The department said Wednesday it was withdrawing the guidance established in 2022 discouraging fiduciaries from including crypto options for 401(k) retirement plans.
“The Biden administration’s Department of Labor made a choice to put their thumb on the scale,” Secretary of Labor Lori Chavez-DeRemer said in a press release. “We’re rolling back this overreach and making it clear that investment decisions should be made by fiduciaries, not D.C. bureaucrats.”
The old guidance had highlighted the many risks of buying and holding cryptocurrencies, including extremely volatile valuations, exposure to fraud, and difficulties with record keeping, advising fiduciaries to think twice before including any crypto options in retirement plans offered to employees. Fiduciaries are required by law to act in the best interests of their clients.
Many fiduciaries will likely still steer clear of crypto in their clients’ retirement accounts, said Knute Rostad, president of the Institute for the Fiduciary Standard, a nonprofit group that advocates fiduciary advisors. However, some may see the DOL’s change as an all-clear to put riskier digital assets into workers’ 401(k)s.
“The cautionary guidance provided by the department in the prior administration was very appropriate to reflect the purpose of the retirement account, and so it could be viewed like a blinking yellow caution light,” Rostad said. “That caution light has been removed and has been replaced by a bright green light that gives ‘permission’ to go ahead and use cryptos in these accounts.”
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Trump has been far more friendly to cryptocurrencies in public policy than his predecessor. As president, He has ordered the creation of a “strategic cryptocurrency reserve,” and the SEC has softened its stance on crypto under his presidency.
Trump has also been open to crypto in his personal business dealings. He and his wife, Melania, launched their own cryptocurrencies before his 2025 inauguration, and his media company announced plans this week to buy billions worth of Bitcoin.
Macy’s Earnings Top Estimates But Retailer Warns About Tariffs
1 hr 32 min ago
Macy’s (M) shares rose Wednesday as the biggest U.S. department store chain’s better-than-anticipated profit offset warnings about the potential impact of tariffs, which the company plans to address with some price hikes.
Macy’s reported first-quarter adjusted earnings per share of $0.16, a penny more than the average estimate of analysts surveyed by Visible Alpha. Sales that fell 5% year-over-year to $4.60 billion were short of forecasts, although the same-store sales decline of 2.0% on an owned basis was smaller than expected.
Sales at its namesake stores dropped 6.5% inclusive of store closures, but they were 2.6% higher at Bloomingdale’s and up 0.8% at Bluemercury.
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Looking ahead, the company said that because of “initial and current tariffs; some moderation in consumer discretionary spending; and a heightened competitive promotional landscape,” it was lowering its full-year adjusted EPS outlook to $1.60 to $2.00 from the earlier $2.05 to $2.25.
According to a transcript provided by AlphaSense, CEO Tony Spring said on the earnings call that Macy’s is resilient, and has “successfully navigated macro and geopolitical uncertainty in the past, and we will do so again.” Spring added that among the steps the retailer plans to take is “strategic pricing decisions, being mindful of the price value relationship between our market brands and private brands and the broader marketplace.” However, Spring noted that Macy’s is not “just broadly increasing price.”
Macy’s shares were up nearly 2% in recent trading. The stock has lost about 28% of its value so far this year.
Okta Shares Sink as Company Points to Economic Uncertainty
2 hr 6 min ago
Okta (OKTA) shares plunged Wednesday, a day after the identification software provider didn’t raise its full-year guidance because of economic uncertainty.
The company said in looking ahead, it was now “factoring in potential risks related to the uncertain economic environment for the remainder of FY26.”
In the conference call with analysts, a transcript of which was provided by AlphaSense, CFO Brett Tighe explained that Okta’s net revenue retention is facing “a little bit of headwind,” which the company believes will last through the first half of the fiscal year.
The outlook offset better-than-expected fiscal first-quarter results. Okta reported adjusted earnings per share of $0.86, with revenue up 12% year-over-year to $688.0 million. Both exceeded Visible Alpha forecasts.
Okta shares were down 13% in recent trading. Even with today’s decline, the stock has gained nearly 40% since the start of 2025.
GameStop Slides After Disclosure of Bitcoin Purchase
2 hr 49 min ago
GameStop (GME) shares fell Wednesday after the video game retailer disclosed the purchase of 4,710 bitcoin.
In a release early Wednesday, the company did not disclose when the purchase was made, at what price the bitcoin was purchased, or whether it was acquired through one or multiple transactions. At its current prices, the bitcoin that GameStop recently purchased is worth north of $500 million.
The retailer added bitcoin to its official corporate investment policy in March, following months of reports and social media posts fueling speculation that GameStop was considering investing in bitcoin. After adding the cryptocurrency to its policy, GameStop said it was planning to issue $1.3 billion in convertible bonds for “general corporate purposes,” including buying bitcoin.
In its annual report issued last month, GameStop cautioned investors that it would be subject to the risks that come with investing in Bitcoin and cryptocurrency at large, namely volatile price swings and potential regulatory shifts. The company did not disclose any bitcoin ownership at the time.
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After rising in premarket trading following the news, GameStop shares were down 10% in recent trading as the price of bitcoin retreated.
Abercrombie & Fitch Stock Soars After Earnings
4 hr 14 min ago
Abercrombie & Fitch (ANF) shares surged more than 20% Wednesday morning after the apparel retailer reported better first-quarter results than analysts had expected.
The company reported earnings per share of $1.59 on sales that grew 8% year-over-year to a record $1.10 billion. Analysts surveyed by Visible Alpha had forecast $1.41 and $1.06 billion, respectively.
Comparable sales rose 4%, well above the 2.3% growth that analysts had projected. Sales grew across all three of the company’s geographic regions, while a 4% drop in sales at the Abercrombie brand was offset by a 22% jump at Hollister.
Abercrombie & Fitch raised the top end of its full-year sales growth forecast to 3% to 6% growth from the prior 3% to 5% range. The retailer lowered its projected EPS range to $9.50 to $10.50 from $10.40 to $11.40 previously. The company said the new outlook “assumes approximately $50 million of tariff expense, or 100 basis points as a percent of net sales.”
The retailer forecasts second-quarter sales growth of 3% to 5% and EPS of $2.10 to $2.30. Visible Alpha consensus calls for sales growth of 4.1% and EPS of $2.56.
Shares were up 23% in recent trading. They entered Wednesday down nearly 50% since the start of the year.
Tesla Levels to Watch After Stock’s Latest Surge
4 hr 24 min ago
Tesla (TSLA) shares moved slightly lower this morning, giving back some of the big gains posted Tuesday after CEO Elon Musk said he is focusing more of his attention on running the EV maker.
“Back to spending 24/7 at work and sleeping in conference/server/factory rooms,” Musk posted on his X social media platform on Saturday.
Tesla shares fell sharply between mid-December and early April amid concerns that Musk was too focused on his work leading the U.S. government’s cost-cutting department, DOGE. However, the stock has rebounded since Musk told investors last month that he would soon start spending more time at Tesla. While the shares are still down about 10% since the start of the year, they have surged more than 60% from their early-April low.
The stock was down 0.4% at around $361.50 in recent trading after surging 7% yesterday to its highest level since early February.
After climbing above a triple bottom formation and the 200-day moving average (MA), Tesla shares trended higher before consolidating in pennant, a chart pattern that signals a continuation of the stock’s uptrend. Indeed, the price staged a breakout above the pennant in Tuesday’s trading session, setting the stage for a new move higher.
It’s worth noting the relative strength index confirms bullish price momentum, though the indicator has moved into overbought territory, increasing the chances of short-term profit-taking.
Investors should watch major overhead areas on Tesla’s chart around $430 and $489, while also monitoring key support levels near $325 and $289.
Read the full technical analysis piece here.
Big Nvidia Stock Price Move Expected After Earnings
5 hr 23 min ago
Shares of Nvidia (NVDA), the second-most valuable company in the world, rose in early trading Wednesday ahead of the scheduled release of the AI chip giant’s earnings report after the closing bell.
Nvidia stock is expected to move about 6% in either direction by the end of the week, according to an analysis of options pricing data. That would put Nvidia’s share price at either $143.92, a 4-month high, or $127.09, a little above where it closed a few weeks ago after the U.S. and China agreed to lower sky-high tariffs on each other’s imports.
Nvidia shares have risen nearly 25% in the past month, putting the stock up about 1% since the start of the year. Technical analysis suggests bullish momentum is on Nvidia’s side heading into Wednesday’s report.
I-Hwa Cheng / AFP / Getty Images
It’s been a year since Nvidia shares rose on a quarterly report. The stock popped more than 9% in May 2024 after the company blew past earnings expectations and announced the 10-for-1 stock split that paved the way for it to join the blue-chip Dow Jones Industrial Average.
Nvidia’s earnings have continued to top estimates since then, but they’ve failed to impress investors. Shares fell after each of Nvidia’s three most recent reports, including nearly 9% in February despite the results containing ample evidence that demand for its AI-enabling chips remained as strong as ever.
Analysts expect Nvidia to report revenue and earnings growth of about 66% and 40%, respectively, in the most recent quarter. All but two of the Nvidia analysts tracked by Visible Alpha recommend buying the stock. Their average price target is $164.
Nvidia shares were up 0.3% recently at around $136.
Major Index Futures Slightly Higher
6 hr 24 min ago
Futures tied to the Dow Jones Industrial Average were up fractionally.
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S&P 500 futures rose 0.1%.
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Nasdaq 100 futures added 0.3%.
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