Friday, December 18, 2020

💲 Markets Keep Pricing in Stimulus

Good morning. Before the election, Congress was debating two different stimulus bills. One was..
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.
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Good morning. Before the election, Congress was debating two different stimulus bills. One was over $1 trillion; the other was over $2 trillion. Now, the market is anticipating that a $900 billion plan making the rounds will come into law sooner or later. Either way, more created money is more created money. Some of it will find its way to households that need it. Some will find its way to the stock market (especially if every American gets another check again).

While the government isn't known for its fiscal discipline in good times, the mere dangling of further stimulus has at least helped create billions of dollars in the stock market. Eventually, Congress will get around to actually spending it, and the market will move on to the next news items capable of explaining daily swings.


Now here's the rest of the news:

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MARKETS
DOW 30,301.79 +0.49%
S&P 3,722.42 +0.57%
NASDAQ 12,764.75 +0.84%
*As of market close
Stocks moved higher on Thursday, with all three indices showing gains.
Oil rallied 1.2 percent, closing at $48.39 per barrel.
Gold rose 1.65 percent, ending at $1,890 per ounce.
Cryptocurrencies rose again, with Bitcoin last near $22,740 after closing in on $24,000.

Today's TOP TIPS
Start Prepping For 2021 Trends with a Top Tech Play
For all the unexpected changes in 2020, a few sectors merely advanced goals that they thought would take years to complete. Major software companies shifted heavily towards work-from-home and other remote-work trends, allowing them to be top winners.

That trend may not be over yet. The shift this year looks set to solidify next year. And many of the top-performing stocks in the space this year are likely to be big winners next year as well.

» FULL STORY

Insider Trading Report: American Homes 4 Rent (AMH)
Wayne Hughes, a major holder at American Homes 4 Rent (AMH), recently added to his stake with a 342,000 share buy. The buy came to just under $10 million, and increased the stake in the company by just under 2 percent.

The buy comes as shares of the company have rebounded to all-time highs following a major drop in March. Company executives have been active insider traders the past few months, but entirely on the sell side.

» FULL STORY

Unusual Options Activity: Citigroup (C)
Shares of megabank Citigroup (C) have done well in the past few weeks during the last stock market surge. At least one trader sees that uptrend continuing in the next few weeks.

That's based on the January 2021 $63 call options. With 35 days until expiration, and with shares at $60, a 5 percent rally in shares would send the trade in-the-money. The trader paid about $1.54 for the options.

» FULL STORY

IN OTHER NEWS
Jobless claims rise to 885,000, the highest since September.
Lawmakers are nearing a new stimulus deal with a $900 billion price tag.
President Trump threatens to veto a $740 billion defense bill.
The Bank of England keeps its policy unchanged in its final meeting of 2020.
As renters remain behind on payments, landlords are also struggling due to lagging payments.
Enterprise M&A deals top $165 billion in 2020.
Robinhood settles with the SEC for $65 million on claims of poor pricing execution.
GM invests $23 million in on-demand vehicle maintenance service Yoshi.
In earnings, Lennar beats on revenue thanks to strong housing demand and cost controls.
Jabil beats, with a 52 percent rise in earnings over a year ago.

S&P 500 MOVERS
TOP
LEN 7.619%
ACN 6.878%
LULU 6.326%
PHM 5.365%
TSLA 5.32%
BOTTOM
MPC 2.569%
HII 2.377%
T 2.212%
OMC 2.209%
CBRE 2.157%

Quote of the Day
This run is completely different to the one in 2017. Back then, the price was driven by mainly retail investors. Now, we additionally have billionaires praising bitcoin and investment funds securing significant positions worth hundreds of millions. The big players that were once very distant from bitcoin and were outspoken critics are now joining in with the run.
- Eric Demuth, CEO and co-founder of cryptocurrency trading app Bitpanda, on Bitcoin's surge this week, which has seen the cryptocurrency top $20,000 for the first time, and now trades closer to $23,000.

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