Good morning and welcome to the stock market today! As we get ready to wrap up another long week, there is still a lot for investors to digest. So what will the stock market do today?
- The S&P 500 is up 1.14%
- The Dow Jones Industrial Average is up 0.82%
- The Nasdaq Composite is up 1.67%
So what else will the stock market do today? Here are the top stories.
What Will the Stock Market Do Today? Talk Regulation.
Crypto critics often fall back on two narratives:
- Cryptocurrencies like Bitcoin (CCC:BTC-USD) consume a lot of energy, often from fossil fuels, making them bad for the environment.
- Due to a lack of regulation, cryptocurrencies are a hotbed for criminal activity.
Earlier this week, we saw the first play out in a big way. Elon Musk announced that Tesla (NASDAQ:TSLA) would no longer accept BTC as a form of payment, citing the environmental impacts involved in Bitcoin mining. Particularly, he said he was concerned about fossil fuel energy sources, like coal. Although many crypto bulls do not consider environmental impact when making investing decisions, BTC tanked on the news. Some investors found a silver lining in so-called green coins like Chia (CCC:XCH-USD) and Cardano (CCC:ADA-USD).
The second narrative continues to lurk beneath the surface. Yesterday, Bloomberg reported that Binance was under joint investigation by the IRS and the U.S. Department of Justice. Although investigators have not accused any Binance of wrongdoing, they say they are trying to root out criminal activity in an unregulated market. BinanceCoin (CCC:BNB-USD) plunged on the news.
So what is the bottom line? The crypto market continues to heat up anyways, and it is unclear what regulators can actually do. For investors though, it is important to watch major companies like Tesla, Square (NYSE:SQ) and MicroStrategy (NASDAQ:MSTR). With pressure to add Bitcoin to the balance sheets and pressure to navigate regulatory waters, how will these companies proceed? How will they treat BTC? And what will this mean as big banks lean into the crypto craze?
Welcome to Williston, North Dakota
Soon, residents in one city of North Dakota will be paying their bills on the blockchain.
Williston residents will have the option of making utility payments using cryptocurrencies through a new partnership with BitPay. According to city executives, crypto offers residents greater security, convenience and cost savings. BitPay charges a 1% fee for utility bills, compared to a 3% commission on payments from Google Pay and Apple Pay.
And while Williston is starting small, the city is already exploring a crypto expansion. If things go well, it says residents could soon use cryptocurrencies to pay fees for licenses, landfills and permits.
Importantly, think twice about rolling your eyes. New data from May 2021 show that 46 million Americans — roughly 17% of adults — own Bitcoin. That is up from 14% at the end of 2020, and seems likely to keep growing as mainstream adoption continues.
Williston is also not alone in its crypto endeavors. As state and local governments look to be ahead of the game, the pressure to embrace digital currencies is heating up. At the end of April, one town in Tennessee announced it was looking to pay its employees in cryptocurrency. It also wants to begin mining Bitcoin and adding BTC to the town balance sheet.
So what do you think: Do you want to get paid in Bitcoin?
A Is for ‘Alpha’ and ‘AMC’
AMC Entertainment (NYSE:AMC) is showing retail investors that it can be the real meme boss.
In recent days, investors have been taking to social media sites with the #AMCSqueeze hashtag, among others. The goal is simple, force short sellers to cover their positions and recognize the power of the retail crowd. Helping power the enthusiasm is a share sale by AMC, which will raise $428 million and help it pay down its debt. According to analysts, this is a smart move, helping the theater chain shore up its balance sheet ahead of full Covid-19 reopening and international expansion.
It also has turned AMC into the alpha.
Previously, good news from GameStop (NYSE:GME) led AMC, Sundial (NASDAQ:SNDL), Koss (NASDAQ:KOSS), BlackBerry (NYSE:BB) and other so-called Reddit stocks higher. This time, with growing community support, AMC stock is proving it can play that role. As investors rally again today behind #AMC100K, keep a close eye on this story.
On the date of publication, Sarah Smith did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Sarah Smith is the Editor of Today’s Market with InvestorPlace.com.