March 3, 2023 Market Update: Crypto Crash, Ford F-150 Lightning Resumes, Costco Sales Dip

Market insights for March 3, 2023, highlighting key financial events shaping investor decisions today.

Cryptocurrency values sharply decline amid Silvergate bank troubles, Ford announces the resumption of its F-150 Lightning electric truck production, while Costco reports sales below expectations. Here’s what investors must know before markets open.

1. Cryptocurrency Prices Drop as Silvergate Bank Faces Client Withdrawals

Major cryptocurrencies are experiencing significant price drops due to escalating concerns about Silvergate Bank's stability. Bitcoin has decreased nearly 5%, trading at $22,354, and Ether has fallen 5% to $1,565. Silvergate's challenges intensified after the bank delayed its annual report and disclosed an ongoing investigation by the U.S. Justice Department.

2. Ford to Restart F-150 Lightning EV Production on March 13

Ford Motor Company announced plans to resume manufacturing of its F-150 Lightning electric truck on March 13, following a production halt caused by a battery fire incident in early February. The company has yet to specify when deliveries will recommence.

3. Microsoft Poised for EU Approval on $69 Billion Activision Blizzard Acquisition

Microsoft is expected to secure European Union antitrust approval for its $69 billion acquisition of Activision Blizzard, aided by proposed licensing agreements for competitors. The European Commission aims to finalize its decision by April 25 and is unlikely to require Microsoft to divest assets to gain approval.

4. Costco Shares Decline After Sales Miss Estimates Despite Earnings Beat

Costco's stock dropped 2% following a sales report that fell short of analyst expectations, despite earnings surpassing forecasts. The warehouse retailer posted a 6.5% increase in fiscal second-quarter sales to $54.2 billion, below the anticipated $55.6 billion. Earnings per share reached $3.30, exceeding the predicted $3.21. Costco has not provided future earnings guidance. The stock has risen 7% year-to-date but declined over 8% in the past 12 months.

5. U.S. Commerce Department Imposes Export Restrictions on 28 Chinese Firms

As part of national security measures, the U.S. Commerce Department placed export controls on 28 Chinese companies suspected of posing security risks, including connections with an Iranian electronics firm previously sanctioned for alleged military ties. This move reflects ongoing efforts by the Biden administration to address emerging threats from China.

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