Thursday, February 18, 2021

😎 Elon Musk Moves An Asset Price Again (No, Not Tesla)

Good morning. Last week, we noted that cryptocurrency dogecoin moved higher following a series..
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.

Good morning. Last week, we noted that cryptocurrency dogecoin moved higher following a series of tweets from billionaire Elon Musk. We closed by asking "Who knows what a billionaire will spark on social media next?" The question was meant to be rhetorical, but apparently there was a real-world answer. Elon Musk tweeted earlier this week that he was using the app Clubhouse. As a result, ClubHouse Media (CMGR) shares saw a 1,200 percent jump — even though that company is unrelated to the app.

Since this seems to be an increasingly common theme, send us your thoughts on the following question:

What asset is Elon Musk likely to tweet about next? And what stock is most likely to move as a result?

Hit "Reply" to this email and let us know what you think!


Now here's the rest of the news:

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MARKETS
DOW 31,613.02 +0.29%
S&P 3,931.33 -0.03%
NASDAQ 13,965.50 0.58%
*As of market close
Stocks traded mixed on Wednesday, with the Dow closing at a new high.
Oil prices rallied 2.0 percent, closing the day at $61.23.
Gold dropped 1.4 percent, with the metal hitting $1,774..
Cryptocurrencies continued higher, with Bitcoin hitting $52,340.

Today's TOP TIPS
This E-Commerce Giant Drops Into the Buy Zone
Earnings season continues to create new trading opportunities for investors. While the explosion of e-commerce trends over the past year is likely to slow, the gains made are likely to hold. So when a company warns on guidance, any selloff can create a buying opportunity.

Case in point? Shopify (SHOP). The company saw stronger-than-expected earnings in the fourth quarter of 2020, yet shares sold off on lower guidance for 2021.

» FULL STORY

Insider Trading Report: Everest RE Group (RE)
Meryl Hartzband, a director at Everest Re Group (RE), recently picked up 1,000 shares. The buy increased the stake by nearly 30 percent, and came to a total cost of $244,000.

This marks the first insider buy at the company in nearly a year. Company insiders, notably the Chairman and President, have both been sellers of shares in the past year while directors have been more likely to buy.

» FULL STORY

Unusual Options Activity: Apple (AAPL)
Tech giant Apple (AAPL) can't seem to catch a break. The company hit an all-time high in September, then had a large pullback. It re-tested that high in late January and shares are pulling back yet again.

But at least one trader sees shares moving higher in the near future. That's based on the March 26th $141 calls. Over 4,075 of the contracts traded against a prior open interest of 216, a 19-fold rise in volume.

» FULL STORY

IN OTHER NEWS
New York Attorney General Sues Amazon Over Warehouse Worker Treatment

The state of New York has filed a lawsuit against e-commerce giant Amazon (AMZN) over the treatment of its warehouse workers. The suit alleges that the company has failed to provide adequate safety and health measures in two of its facilities, and that it unlawfully fired employees who complained about this treatment.
Buffett Reduces Bank Stakes, Buys Telecom Play

The latest 13F filing from Warren Buffett-controlled Berkshire Hathaway (BRK-A) shows that the conglomerate has reduced its stake in banking, specifically JPMorgan Chase (JPM) and has put some capital into telecom play Verizon (VZ). Buffett also started a stake in energy giant Chevron (CVX).
Retail Sales Jump 5.3 Percent in January—Likely Thanks to Stimulus Checks

After three months of declines, retail sales saw a 5.3 percent rise in January. The timing appears to be driven in part by the latest pandemic stimulus checks. The gain is the strongest since June. With consumer spending accounting for nearly two-thirds of GDP, it's clear that the economy is still dependent on reopening as quickly as possible to avoid endless stimulus payments.
Will Short-Term Treasuries Go Negative?

It's possible that some short-term Treasury yields could end up going negative thanks to a supply crunch. When that happens, bond buyers pay a small percentage to hold rather than receive a small percentage for loaning out their capital. Auction rules prevent the move from happening, but the move could occur in secondary markets by risk-averse investors who want to stay out of the stock market.
Fed Approves an Overhaul Plan for Wells Fargo

The biggest laggard among the major banks, shares of Wells Fargo (WFC) got a shot in the arm thanks to the Federal Reserve. The regulatory agency approved the bank's overhaul plan, removing an asset cap hurdle that has been in place since February 2018. The prior plan led to the company's balance sheet size being capped at $1.95 trillion, and was imposed due to the bank's various scandals and lack of internal controls over the past decade.

S&P 500 MOVERS
TOP
VZ 5.245%
WFC 5.174%
TSCO 5.132%
KHC 4.695%
DISCA 4.245%
BOTTOM
HSIC 8.09%
IPGP 7.369%
BIDU 5.371%
PVH 4.232%
DFS 3.939%

Quote of the Day
Today the volatility of it is extraordinary, but listen, people are looking for storehouses of value. People are looking for places that could appreciate under the assumption that inflation moves higher and that debts are building, so we've started to dabble a bit into it.
- Rick Reider, CIO of Global Fixed Income for BlackRock, on why he's started to invest into Bitcoin as the cryptocurrency topped $51,000 for the first time.

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