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- EV Sector Thrives Amid Policy Changes
EV Sector Thrives Amid Policy Changes
Ryan Serkes
January 27, 2025
The
Daily Trade
Good morning.
Today’s newsletter dives into some pivotal developments shaping the financial landscape. In the stock market, Michigan's electric vehicle sector is thriving with over $27 billion in investments, showcasing resilience amid federal policy shifts. Meanwhile, JPMorgan's return to a five-day workweek could breathe new life into Wilmington's economy, potentially revitalizing local businesses.
In real estate, we’re seeing a stark contrast, with U.S. home sales hitting record lows due to soaring prices and high mortgage rates. However, luxury listings like Vail's largest home are still attracting attention. Finally, in the crypto realm, congressional inquiries into 'debanking' practices raise important questions about the treatment of digital asset firms, while the SEC's recent reversal on custody rules signals a significant shift in regulatory stance.
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Here's what's happening today:
Today in the Stock Market- Block faces class action over compliance issues 📉
- Michigan's EV industry thrives despite policy shifts ⚡
- JPMorgan's return to office may boost Wilmington 💼
- Home sales at lowest in 30 years 📉
- Washington home prices rise despite fluctuating rates 📈
- Largest home in Vail listed for $25 million 🏡
- Congress investigates controversial 'debanking' practices. 🔍
- SEC rescinds rule limiting banks' crypto custody. 📉
Question
What are your thoughts on Michigan's booming electric vehicle sector? Do you think federal policy changes will impact its growth in the long run?
Reply to this email with your answer
Today in the Stock Market
 Michigan's Electric Vehicle Sector Flourishes Despite Federal Policy Changes Despite recent policy changes from the Trump administration aimed at the electric vehicle (EV) industry, Michigan remains a beacon of optimism and investment in this sector. Over $27 billion is being invested in approximately 60 EV manufacturing and battery projects across the state, surpassing even Georgia's $26.6 billion. Michigan's historical significance in the automotive industry is being revitalized with new projects like GM's Factory ZERO for electric Hummers and Silverados, and a $1.6 billion battery manufacturing campus projected to create over 2,100 jobs. Local auto dealers and training programs are adapting to the shift towards EVs, with technicians learning to service electric vehicles and businesses preparing for an electrified future. While the federal government's rollback of EV mandates and potential elimination of tax credits could pose challenges, industry leaders believe that the investments in Michigan's EV infrastructure will pay off in the long run, ensuring the state remains at the forefront of automotive innovation. |
 JPMorgan's Office Return Could Revitalize Wilmington's Economy JPMorgan Chase & Co. is reportedly set to reinstate a five-day workweek for its employees, a move that could significantly impact Wilmington's business landscape. The largest bank in the U.S. plans to replace its current three-day in-office mandate, which may lead to increased economic activity in the city, as many employees currently live outside Wilmington. Mayor John Carney has expressed support for this shift, highlighting the importance of in-office employees for the city's wage tax revenue, which is crucial for funding public services. With JPMorgan being Delaware's third-largest employer, the return of staff to the office could enhance local businesses, from restaurants to retail. While some financial institutions are maintaining flexible work policies, the potential influx of JPMorgan employees could stimulate Wilmington's economy and encourage other companies to reconsider their remote work strategies. |
Block, Inc. Faces Class Action Amid Regulatory Scrutiny Block, Inc. is currently facing a securities class action lawsuit following a series of investigations that have raised significant concerns about its compliance practices. The issues came to light after Hindenburg Research published a critical report alleging that Block had exaggerated its user numbers and had failed to implement adequate due diligence procedures on its Cash App platform. The report indicated potential links to money laundering and other illegal activities. As a result, federal regulators have initiated inquiries, and Block has been compelled to pay millions in fines, including an $80 million settlement with state regulators and a $175 million order from the Consumer Financial Protection Bureau for user fraud. Investors who suffered losses during the class period from February 26, 2020, to April 30, 2024, are being urged to submit their claims to the legal firm Hagens Berman, which is leading the investigation into Block's business practices. The situation remains fluid, with ongoing inquiries from the SEC and DOJ that may lead to further legal actions against the company. |
Today in Real Estate
 US Home Sales Plummet to Record Lows Amid Affordability Crisis Sales of existing homes in the U.S. have reached their lowest levels in nearly three decades, primarily due to soaring home prices and elevated mortgage rates. In 2024, the National Association of Realtors reported a 0.7% decline in sales, totaling 4.06 million, marking the lowest since 1995. This downward trend is attributed to a combination of factors, including a persistent shortage of available homes and the increasing difficulty for first-time buyers to enter the market. The median home price soared to an all-time high of $407,500, further exacerbating the affordability crisis. The housing market has been experiencing a slump since 2022, following a rise in mortgage rates from their pandemic-era lows. The average rate on a 30-year mortgage peaked at nearly 8% in October 2023, significantly limiting the buying power of potential homeowners. With only 1.15 million homes available for sale at the end of December, inventory remains significantly below historical averages, contributing to the ongoing issues of affordability and accessibility. Experts point to a lack of inventory as a primary constraint on the market, with many homeowners reluctant to sell due to the unfavorable mortgage rates they would face on new purchases. The market's challenges are expected to persist, with economists predicting that it may take years for sales to return to pre-pandemic levels, possibly not until the 2030s. The combination of high prices, limited availability, and rising mortgage rates continues to create a difficult landscape for homebuyers across the country. |
 Luxury Living: Vail's Largest Home Hits Market for $25 Million The largest home in the Vail and Beaver Creek area has officially hit the market with an asking price of $25 million. Spanning over 20,000 square feet, this luxurious estate features an impressive array of amenities, including an indoor pool, wine salon, library, and a ballroom-inspired design. Located on a 1.5-acre lot along the Beaver Creek Golf Course, the property not only offers lavish living spaces but also a rich history that adds to its allure. Originally designed by architect Charles Sink in 1985, the home has undergone several transformations since its initial ownership by prominent businessman Sergio Bolaños. Following legal troubles in the late 1980s, the property was sold and later acquired by Dr. Malik and Seeme Hasan, who further enhanced the estate with additional wings and modern amenities. The property now boasts nine bedrooms and thirteen bathrooms, making it a prime candidate for luxury buyers seeking a unique mountain retreat. Situated within a gated community, the estate provides residents with exclusive benefits such as 24-hour transportation to local ski slopes and golf courses. With its combination of size, luxury, and location, the property is poised to attract high-net-worth individuals looking for a prestigious residence in one of Colorado's premier ski destinations. |
Washington State Sees Home Price Growth Amid Mortgage Rate Variability In Washington, home prices and sales have shown steady growth in 2024, despite fluctuations in mortgage interest rates. According to the Northwest Multiple Listing Service, the average rate for a 30-year mortgage started the year at 6.62%, experienced peaks and troughs throughout the year, and ended at 7.04% in January 2025. This volatility has created a challenging environment for buyers and sellers alike, with many still adjusting to the new normal of higher rates. Despite these challenges, median home prices in Washington increased by an average of 6.7% over the past year, with some areas experiencing even higher growth. For instance, while homes in Adams County saw a modest increase of 2.38%, certain regions like the Cascade Valley and Mae Valley reported substantial price hikes of 12.9% and 9.14%, respectively. The overall increase in active listings by 24.33% compared to 2023 suggests a slight easing in the market, although it remains to be seen if this trend will continue. Experts indicate that the market may be adjusting to a new normal characterized by persistent interest rates above 6%. As buyers and sellers navigate these changes, real estate professionals are optimistic that the market will stabilize, allowing for more opportunities for first-time buyers and those looking to invest in property. The ongoing dynamics of supply and demand will play a crucial role in shaping the future of the housing market in Washington. |
Today in Crypto
 Congressional Inquiry into 'Debanking' Raises Concerns for Crypto Recent congressional hearings are set to address the growing concern of 'debanking' within the crypto industry, a practice where banks terminate accounts without clear justification. Republican leaders, including Sen. Tim Scott, are spearheading the investigation, highlighting the potential misuse of regulatory power under the Biden administration. Scott emphasized the need for equal treatment of all legal businesses, regardless of political affiliations, and criticized the pressures that may lead banks to sever ties with digital asset firms. The House Financial Services Committee will also conduct a hearing focused on the implications of 'Operation Choke Point 2.0,' which allegedly targets crypto firms and conservative figures. The committee's chairman, Rep. James Comer, has reached out to key industry leaders to determine whether these debanking practices stem from the industry itself or regulatory influences. The investigation aims to uncover the underlying motivations behind these actions, which have raised alarms among crypto advocates. The inquiry follows a noteworthy discussion involving former President Trump and Bank of America CEO Brian Moynihan about the challenges faced by conservative clients in accessing banking services. As these hearings approach, stakeholders in the crypto space are closely monitoring developments that could shape the future of banking and digital assets in the U.S. |
 SEC Reverses Course on Crypto Custody Rules The Securities and Exchange Commission (SEC) has officially withdrawn Staff Accounting Bulletin 121, a measure that previously restricted banks from acting as custodians for cryptocurrency. This decision comes shortly after the resignation of former SEC Chairman Gary Gensler and has been met with widespread approval from the banking sector. Industry leaders argue that allowing banks to manage digital assets will enhance consumer protection and provide a more secure environment for crypto investments. The American Bankers Association and other banking groups have long advocated for the repeal of SAB 121, which they deemed a hindrance to financial institutions' ability to engage with digital assets. The SEC's reversal is seen as a significant step toward regulatory clarity, enabling banks to offer custody services without the burdensome liabilities imposed by the now-rescinded bulletin. In a broader context, this move aligns with the Trump administration's efforts to support the crypto sector, as recent statements from the White House emphasize the importance of fair access to banking services for all law-abiding entities. The withdrawal of SAB 121 is viewed as a pivotal moment that could reshape the landscape of crypto custody, fostering a more collaborative relationship between traditional financial institutions and the burgeoning digital asset market. |
Today's Technical Analysis
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Hold | ULTOSC Sell | STOCH Sell |
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Hold | ULTOSC Sell | STOCH Sell |
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Sell | ULTOSC Hold | STOCH Sell |
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Sell | ULTOSC Sell | STOCH Hold |
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Technical Indicator Information
Relative Strength Index (RSI) | Period: 14 days | Overvalued threshold: 70 | Undervalued threshold: 30
Money Flow Index (MFI) | Period: 14 days | Overvalued threshold: 80 | Undervalued threshold: 20
Williams Percent Range (WillR) | Period: 14 days | Overvalued threshold: -20 | Undervalued threshold: -80
Aroon Oscillator (AO) | Period: 14 days | Overvalued threshold: 75 | Undervalued threshold: -75
Moving Average Convergence/Divergence (MACD) | Period: 26/12/9 days | Overvalued threshold: MACD crosses below MACD Signal | Undervalued threshold: MACD crosses above MACD Signal
Stochastic Oscillator (STOCH) | Period: 14/3/3 days | Overvalued threshold: %K crosses below %D above 80 | Undervalued threshold: %K crosses above %D below 20
Commodity Channel Index (CCI) | Period: 20 days | Overvalued threshold: 100 | Undervalued threshold: -100
Bollinger Bands (BBANDS) | Period: 20 days | Overvalued threshold: price >= upper band | Undervalued threshold: price <= lower band
Parabolic Stop and Reverse (SAR) | Period: variable 50 - 100 days | Overvalued threshold: SAR crosses above price | Undervalued threshold: SAR crosses below price
Triple Exponential Average (TRIX) | Period: 15 days | Overvalued threshold: TRIX crosses below 0 | Undervalued threshold: TRIX crosses above 0
Ultimate Oscillator (ULTOSC) | Period: 28/14/7 days | Overvalued threshold: 70 | Undervalued threshold: 30
Directional Movement Index (DMI) | Period: 14 days | Overvalued threshold: PlusDI crosses below MinusDI | Undervalued threshold: PlusDI crosses above MinusDI
Average Directional Index (ADX) | Period: variable 14 days | Requirement: >= 25
Analysis is only performed on securities with market caps in excess of $100 million and with daily trade volume in excess of $50 million.
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The information in our newsletter is not intended to constitute investment advice and is not designed to meet your personal financial situation. It is provided for information purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor or a group of investors. It should not be assumed that any investments in securities, companies, sectors or markets identified and described will be profitable. We strongly advise you to discuss your investment options with your financial advisor prior to making any investments, including whether any investment is suitable for your specific needs.
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