🔀 It’s Just Volatility, Not Rising Bond Yields—For Now

Good morning. Some market analysts are worried the stock market is about to drop. Why? Because..

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. Some market analysts are worried the stock market is about to drop. Why? Because of 10-year Treasury bond rates. Since the start of the year, they've been rising from about 1 percent to 1.36 percent. In other words, if you lock up your money with Uncle Sam for 10 years, every $1,000 will pay you nearly $14 per year. With those kinds of returns, it's clear that stocks are still the best game in town. And with inflation running over 2 percent per year officially (and even higher unofficially), it's a guaranteed loss, versus the risk of a potential loss with the stock market. That's why we see the market's latest moves as nothing more than a little volatility. When 10-Year rates are at least on par with inflation estimates, that's a different conversation. Would you be willing to lock up your money for a decade for a mere 1.36 percent annual return? Hit "Reply" to this email and let us know what you think! Now here's the rest of the news: Sponsored Content "Tesla Killer" Stock Set to Skyrocket 1,000 Times Over My friends complain all the time about charging their Teslas. It takes hours. Imagine their surprise when I told them about a brand-new green technology that charges in less than five minutes!  It lasts hundreds of miles longer, is cheaper than batteries and can charge forever. And best of all, the tiny little-known stock behind it trades for only a few bucks. Click HERE for the full story. MARKETS DOW 31,567.22 +0.14% S&P 3,884.00 +0.19% NASDAQ 13,465.20 -0.50% *As of market close • Tech stocks were slammed again, but closed well off their lows. • Oil prices rose 0.6 percent, closing the day at $62.08. • Gold declined 0.2 percent with the metal changing hands at $1,805. • Cryptocurrencies dropped for a second day, with Bitcoin last trading near $47,494. Today's TOP TIPS Outlook Uncertainty Spells Bigger Profits in this Retail Dominator One lingering trend from the pandemic is more uncertainty than usual from companies when they report their quarterly earnings. Any time a company decides not to provide forward guidance, the market will take the stock down—even if it probably doesn't deserve it. Take, for instance, Home Depot (HD). The home improvement retailer beat on earnings and revenue expectations—with revenue up 25 percent in the past year. Yet shares dropped as the company didn't offer guidance. » FULL STORY Insider Trading Report: Avis Budget Group (CAR) Brian Choi, CFO of Avis Budget Group (CAR), recently picked up 23,735 shares. The buy set him back $1.09 million, and represents an initial stake in the company. This marks the first insider buy of the year. Insiders, largely led by a major holder, have been big buyers in the past year. Company executives have generally been light sellers, provided you go back to 2018 or 2019. » FULL STORY Unusual Options Activity: Activision Blizzard (ATVI) Video game producer Activision Blizzard (ATVI) has fared well, as strong trends in the gaming industry have led to massive profits. At least one trader sees shares moving higher. That's based on the May $95 call options. Over 2,700 contracts traded against a prior open interest of 153, for a 18-fold rise in volume on the trade. Expiring in 86 days, the trade is at-the-money, given that shares trade near $96. » FULL STORY IN OTHER NEWS • The House is Set to Pass the $1.9 Trillion Covid Relief Bill The next round of stimulus is out of committee and faces a vote before the full House of Representatives. The $1.9 trillion package would provide another $1,400 in direct stimulus to qualifying households. The bill is likely to see some provisions challenged in the Senate, including a plan for a $15 minimum wage. • Man Behind OPEC Oil Shock Dies Former Saudi oil minister Ahmed Zaki Yamani has passed at 90. He's best remembered for igniting a massive rise in oil prices in 1973, as OPEC members cut off supplies to the United States for supporting Israel in the Arab-Israeli war. The goal wasn't to push oil prices punitively higher, but, in yet another instance of markets overreacting to events, oil surged from $3 to $12 per barrel, leading to an energy crisis in the U.S. • Shopify Sells $1.55 Billion in Shares Taking advantage of a high share price and a frothy market, Shopify (SHOP) sold 1.18 million new shares. While that dilutes existing shareholders somewhat, shares were only down about 5 percent on the news. The share sales will provide the company with $1.55 billion that it can use to strengthen its balance sheet and further expand operations in the years ahead. • Lucid Motors Set to Go Public Via SPAC Electric vehicle company Lucid Motors is set to go public by a merger with a special purpose acquisition company, or SPAC. The SPAC is Churchill Capital IV Corp, and the deal values the company at $24 billion. That's the largest SPAC deal to date, and just one in the latest number of companies in the EV space to go public, either via SPAC or via a traditional IPO process. • Easy Money Is Here to Stay Noting that the economy remains a long way from full employment, Federal Reserve Chairman Jerome Powell reaffirmed today that interest rates and money printing polices were likely to stay in place. In prepared remarks before the Senate Banking Committee, the Fed chair noted the progress being made on handling the pandemic. S&P 500 MOVERS TOP XEC 9.633% MRO 9.412% WYNN 7.677% MGM 5.517% VNO 5.334% BOTTOM LDOS 9.913% TDY 4.32% DISCA 4.232% SBAC 4.201% DISH 4.061% Quote of the Day I think the push up in bond yields is overdue because we have the prospect of very strong economic growth in the U.S. You have seen other indicators of economic activity be very strong, for example commodities have been on a real tear since last summer. Bond yields are reflecting stronger economic growth. - Ernesto Ramos, chief investment officer of BMO Global Asset Management, on why rising bond yields are a sign of economic recovery, which would also support the thesis that rising rates are far from being a threat to the stock market at this time. Sponsored Content The "Tesla Killer" Is Here...It May Have Just Made All Electric Cars Obsolete. It takes moments to charge. It's 100% emission-free. It costs next to nothing. And it involves no fossil fuels. That's why Bloomberg projects it to "skyrocket 1,000 times over." And best of all… The tiny, little-known stock behind the "Tesla Killer" trades for just a few bucks. Don't wait another moment. It's set to trade higher than Tesla within the next few months. Right now you can lock in shares for a few dollars... instead of more than $400 like Tesla. Click HERE for the full story. Not sure the best way to get started? Follow these simple steps to hit the ground running. › Step #1 - Get These FREE Reports: Warren Buffett's Top 5 Stocks | 10 Great Stocks Under $10 | 7 High Yield Dividend Stocks › Step #2 - Join Our Premium Advisory: The Next Superstock › Step #3 - Claim Your Free Copy Of: Big Book Of Chart Patterns | How to Trade Weekly Options For Weekly Income Nothing in this email should be considered personalized financial advice. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment. 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