Monday, February 8, 2021

😏 Retail Traders and Hedge Funds Agree On This One Thing

Good morning. Buyers of GameStop created their own stimulus plan as Congress failed to act..
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. Buyers of GameStop created their own stimulus plan as Congress failed to act, at least until brokerage firms shut down trading. But Friday saw popular retail names rally at the same time the stock market did, thanks to a renewed focus on stimulus.

This is why the stock market is the best game in town. Interest rates are near zero, making it easy to borrow money to invest in stocks. And investing in bonds at today's rate sounds like a guaranteed way to lose money to inflation. With the Federal Reserve still printing money like gangbusters, it's no surprise the markets are already heading higher on the rumor that more money will be going into people's pockets, and likely filtering into stocks. It's the one thing hedge funds and retail traders alike can agree on.


Now here's the rest of the news:

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MARKETS
DOW 31,148.11 +0.30%
S&P 3,886.80 +0.39%
NASDAQ 13,856.30 +0.57%
*As of market close
Stocks traded higher on Friday, closing out their best week since November.
Oil advanced 1.3 percent, closing at $56.98 per barrel.
Gold rallied 1.1 percent, hitting $1,812 per ounce. Silver rallied 2.9 percent to $26.99
Cryptocurrencies continued their advance, with Bitcoin last trading at $37,669.

Today's TOP TIPS
E-Commerce Service Plays Show Investors Where to Expect Economic Growth
The past year has seen a surge of e-commerce growth. While most may think of the sales of goods normally bought in stores, a number of other services are also available online. Companies that cater to small businesses growing online have seen tremendous growth from the increased online sales of both goods and services.

That's a trend likely to continue, which could be a big winner for a number of firms in the year ahead, even after a stellar year.

» FULL STORY

Insider Trading Report: Charles Schwab Corp (SCHW)
Charles Ruffel, a director at Charles Schwab Corp (SCHW), recently picked up 3,636 shares. The buy increased his stake by 23 percent, and the total cost came to just over $196,000.

This marks the first insider buy at the company since last July. Insiders have been overwhelming sellers of shares, dominated by Chairman Charles Schwab, who is still substantial shareholder at the company. Overall, insiders own over 7 percent of shares.

» FULL STORY

Unusual Options Activity: Tesla Motors (TSLA)
Shares of electric vehicle giant Tesla Motors (TSLA) have flatlined in recent weeks. However, at least one trader sees either a massive potential move higher in shares, or a way to profit from the current sideways tend.

That's based on the April 2021 $800 and the April 2021 $850 call options. Over 46,000 contracts traded at the $800 strike price, a 110-fold rise in volume. The $850 calls saw a 34-fold rise in volume, also with over 46,000 contracts trading.

» FULL STORY

IN OTHER NEWS
49,000 Jobs Created in January

The unemployment rate dropped to 6.3 percent, following jobs numbers showing 49,000 jobs created in January. While the rate of job growth was low, it's an improvement over the net loss of jobs in December. Overall, the unemployment rate suggests that the economy is still down 9.9 million jobs since last February.
Peloton Still Faces Supply Problems

Exercise equipment firm Peloton (PTON) reported earnings. Shares sold off as the company reported that it's still seeing issues with logistics and supply lines for manufacturing and delivering its popular product to customers. The company has committed $100 million to improve its logistics going forward.
Chip Shortage Hitting Vehicle Manufacturers

The semiconductor shortage is impacting a number of industries, including traditional firms. Ford warned that the lack of chips could reduce its production by 20 percent this year, and General Motors is already looking to shut down production at several plants until supplies are available.
Working from Home? You're Probably Working More

Employees working from home over the past year are more likely to be adding an extra 2.5 hours per day, based on a multi-country study. That may more than offset saved time from commuting and socializing with coworkers before and after work. Nevertheless, many workplaces still want to see a return to the office, even with the added productivity of working from home.
Ethereum Hits a New All-Time High

Prices of Ethereum, the second-largest cryptocurrency after Bitcoin, recently surpassed its 2017 high. The new price? $1,700. The move comes as ether futures contracts are set to trade on the CME next week, and ahead of the IPO of Coinbase, a popular cryptocurrency brokerage firm that offers Ethereum trading.

S&P 500 MOVERS
TOP
ATVI 9.635%
EL 7.809%
WYNN 7.636%
ZM 7.593%
AON 7.266%
BOTTOM
COG 6.942%
FTI 6.026%
CBOE 5.845%
UNM 5.427%
TMUS 4.074%

Quote of the Day
Although retail buying was portrayed as the main driver of the extreme price rally experienced by some stocks, the actual picture may be much more nuanced.
- JPMorgan global quantitative and derivatives strategy analyst Peng Cheng, on why the move in GameStop as well as some other retail favorites may have had some help by funds taking the opposite side of the trade of those trying to heavily short these companies.

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