Yahoo Finance Trending tickers: Bitcoin | Hermès | Barclays | Arm
The latest investor updates on stocks that are trending on Tuesday
Bitcoin (BTC-USD)
Bitcoin surged past $35,000 (£28,625) as investment firm BlackRock made concrete steps to prepare for its bitcoin spot exchange-traded fund (ETF).
The cryptocurrency rose to $35,198, its highest in nearly a year-and-a-half before easing to $34,478.
BlackRock's proposed bitcoin ETF is still under regulatory review by the US Securities and Exchange Commission (SEC). Asset manager Fidelity Investments is also in the race to offer such products.
Bloomberg Intelligence ETF analyst Eric Balchunas flagged on X that the iShares Bitcoin Trust “has been listed on the DTCC” with the ticker IBTC.
“This doesn’t mean it’s technically approved,” Balchunas said in an interview. “It’s not home free. But this is pretty much checking every box that you need to check before you launch an ETF. When we see a ticker added, those things are usually right before launch.”
Read more:LIVE: European stocks higher as FTSE struggles after UK jobs data
If approved, ETFs would likely widen adoption of the cryptocurrency. However, the US regulator has resisted the idea, citing fraud risks.
Hermès (RMS.PA)
Birkin bag maker Hermès announced a 15.6% rise in third quarter sales as wealthy shoppers in the US and Europe splurge on luxury.
Revenues at the French fashion house grew 15.6% to €3.3bn (£2.93bn) in the three months to the end of September. Growth was driven by Hermès’ Europe and US customers with sales up 20% in Europe and 18% in the Americas.
Hermès said that its European arm was boosted by the loyalty of local clients and the “dynamics” of tourist flows.
Hermes shares traded up 2.5% in mid-morning trading.
“Hermès is managing to defy the economic headwinds thanks to price hikes which don’t appear to be weighing on customer demand,” Victoria Scholar, head of investment at Interactive Investor, said.
Read more: Bank of England likely to hold interest rates as UK unemployment eases to 4.2%
“Unlike most goods where demand softens as prices rise, the luxurious allure of a Hermes bag, with some costing over £10,000, only seems to improve as prices increase.
She added: “Some ultra wealthy individuals have also been turning to the luxury goods market as a source of alternative investments where prices seem to go up and up.”
Barclays (BARC.L)
Shares in Barclays fell by as much as 5% after the lender reported lower earnings and cut its profitability forecasts
It reported a pre-tax profit of £1.9bn for the three months to September, slightly ahead of analysts’ expectations but below last year’s £2bn profit.
Barclays revealed it is mulling over ways to make the bank more cost-efficient and productive, which could result in structural changes across the business.
“The group is evaluating actions to reduce structural costs to help drive future returns,” it said in its financial update.
AJ Bell head of financial analysis Danni Hewson said: “Net interest margin is the metric the banks are judged on so it is not a surprise to see Barclays heavily punished for downgrading guidance here even if profit for the third quarter was ahead of guidance.
“It’s never a particularly palatable message for shareholders to hear a business is going to be less profitable. While the banks were seen as beneficiaries of higher interest rates, and perhaps were for a time, the competitive and regulatory pressures to match increases in the cost of borrowing with rates offered for cash on deposits mean this benefit has not proved long lasting.
Read more: Stocks that are trending today
“On top of this the rate of bad debts is creeping up as households and businesses continue to contend with inflationary pressures and higher borrowing costs."
Arm (ARM)
Arm shares surged in pre-trading after reports that Nvidia (NVDA) and AMD (AMD) are both planning to launch Arm-based central processing units (CPUs) for Windows-based PCs.
Nvidia could release a PC chip based on Arm as soon as 2025, according to Reuters.
Last month, Arm went through an initial public offering, after shunning the UK to list in New York. At the time, it said that it had long-term agreements with top chipmakers to use its technology in their chips.
Apple (AAPL) recently transitioned its laptop and PC chips from Intel to home-grown Arm processors.
Watch: Barclays shares tumble after cost-cuts warning
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