BlackRock is IBD's Stock Of The Day as the price of bitcoin neared its all-time high amid robust demand for the newfangled bitcoin exchange traded funds. BlackRock stock broke out Monday as a broad swath of bank stocks rallied.
The world's largest money manager entered 2024 with $10 trillion in managed assets, a 16.5% increase.
In January, BlackRock announced it will purchase alternative asset manager Global Infrastructure Partners, which manages over $100 billion in client assets.
That's all fine and dandy. But investors may be most excited by bitcoin's scorching rally.
Bitcoin Price, Bitcoin ETFs
The bitcoin price rally produced record inflows into spot bitcoin ETFs — and cemented the investor favorites in this new asset class, Bloomberg reported March 3. Among the two big winners: BlackRock.
BlackRock's iShares Bitcoin Trust and Fidelity Investments' Wise Origin Bitcoin Fund have captured 79% of total inflows into nine new exchange traded funds that invest in bitcoin. Those inflows have come since Jan. 10, after the Securities and Exchange Commission gave bitcoin ETFs the green light.
The data also showed signs that "BlackRock is pulling ahead of Fidelity to dominate the sector," the report said.
On Monday, bitcoin rose 6.9% to $67,031.36, its first move above $65,000 since November 2021.
The digital token has rocketed around 55% so far this year, easily outpacing gains for the S&P 500 index.
Bitcoin's record high, set in November 2021, is $68,990.90, according to Dow Jones Market Data.
BlackRock Stock
Shares of the investment manager gained 2.4% to 834.47 in big volume on the stock market today.
BlackRock stock topped a 819 buy point from a nine-week flat base, according to MarketSurge pattern recognition. The 5% buy range goes to 859.95.
The financial firm first cleared the flat-base entry on Feb. 23. It then sought and found support at the 10-week moving average, before making a powerful return to the buy zone Monday.
On the negative side, the relative strength line remains well below its consolidation peak. The RS line is also below the 52-week high and all-time high. That strength indicator, shown in blue in the chart provided, tracks a stock's performance against the S&P 500.
Another negative lies on the fundamentals side. BlackRock's earnings and revenue grew by single-digit percentages in the latest quarter.
For full-year 2023, BlackRock's sales fell 0.1%, according to FactSet. Analysts, on average, expect a 12% sales rebound in 2024.
Bank Stocks Rally
Superregional banks and mortgage and related services were two of IBD's three top-performing industries on Monday. PNC Financial rallied more than 5%. Fifth Third Bancorp and KeyCorp each posted a 4% advance, with Fifth Third toying with a buy point.
Huntington Bancshares rallied 3.5% to score a breakout. Morgan Stanley popped more than 4%, retaking its 50-day moving average for the first time since January.
