Thursday, March 18, 2021

😏 Fed Plays Kick the Can to Placate Markets

Good morning. Stocks jumped higher yesterday afternoon as the Federal Reserve kept interest rates..
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. Stocks jumped higher yesterday afternoon as the Federal Reserve kept interest rates at zero and kept in accommodating language in its statement. Traders now expect the bank to refrain from raising interest rates into 2023.

While that's what markets wanted to hear, it does run the risk of overstimulating the economy in the next few months as the pandemic lockdowns wind down. While the Fed reported that inflation was running under 2 percent, a number of measures indicate higher prices in everything from food to homes.

Is the Fed right to hold off on raising interest rates until 2023, or should we brace for higher inflation?

Hit reply and share your thoughts.


Now here's the rest of the news:

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MARKETS
DOW 33,015.37 +0.58%
S&P 3,974.11 +0.29%
NASDAQ 13,525.20 +0.40%
*As of market close
Stocks moved higher on Wednesday, closing near the highs of the day.
Oil dropped 0.2 percent, last trading at $64.67.
Gold jumped 0.9 percent, changing hands at $1,747 per ounce.
Cryptocurrencies also rose, with Bitcoin last at $58,152.

Today's TOP TIPS
Cybersecurity Is Here to Stay—Grab This Top Industry Play
While tech names have been out of favor with the markets the past few weeks, many tech companies continue to post impressive earnings and growth numbers. One such niche is in cybersecurity plays.

For instance, CrowdStrike (CRWD) posted a 74 percent jump in revenue. The company's subscription and recurring revenue has now cleared over $1 billion per year. Yet shares are still well off their recent highs

» FULL STORY

Insider Trading Report: Crown Castle International (CCI)
Martin Landis, a director at Crown Castle International (CCI), recently picked up 1,180 shares. The buy increased his stake by less than 1 percent, and came to a total cost of just under $190,000.

Landis has been a repeat buyer in recent months, although other company insiders have been sellers. Overall, company insiders have been bigger sellers as the share price has continued higher, relatively unaffected by the pandemic.

» FULL STORY

Unusual Options Activity: Cameco (CCJ)
Commodities have been trending strong lately. It's no surprise that traders still see some upside in uranium. One trader sees a move higher in Cameco (CCJ).

That's based on the April $24 call option. Expiring in 29 days, the trader paid $0.30 to buy over 28,500 contracts. That's a 214-fold rise in volume from the prior open interest of 133. With shares near $19, it would take a further 26 percent rally for the option to move in-the-money.

» FULL STORY

IN OTHER NEWS
Construction Materials Cost More on Strong Housing Market

Lumber prices have been near records in light of the strong demand for housing. Other materials necessary for production are likewise on the rise. That include granite, concrete blocks, and even simple bricks. That's part of rising commodity prices, partially driven by massive money creation in the past year as well. So far, homebuilders have been able to push through the higher costs to homebuyers.
Samsung Warns on Chip Imbalance

Citing the global shortage of computer and memory chips, Samsung warned that its new version of the Galaxy Note smartphone may see production delays. The warning was enough to send other semiconductor names down as well. Demand for chips in numerous products remains robust, but supply remains tight. Further delays on new tech may lay ahead.
SPAC Fundraising Jumps 2,000 Percent

Compared to a year ago, funds moving into special purpose acquisition companies (SPACs) are up 2,000 percent. The total raised so far in 2021 now exceeds the total for all of 2020. Some see this move as overdone. With a large number of potential deals in place already, traders need to carefully analyze any potential deals and SPAC managers to find the best opportunities..
5G Still in its Early Stages

A 15-acre waterfront compound in Palm Beach just sold for about $94 million. While that may sound like a sign of a red-hot real estate market in the sunbelt, the home was first listed in 2015 for $200 million. With 62,200 square feet and 33 bedrooms, it's easy to see why the property took a while to find a buyer who could afford it.
PatSnap Raises $300 Million

IP analytics platform PatSnap has just raised another $300 million. While the company hasn't provided a specific valuation number, they have confirmed that the valuation is over $1 billion, making for another unicorn play. Investment firm SoftBank and Chinese tech giant Tencent were backers in this latest round, a sign that the company will likely go public at some point and has huge potential ahead.

S&P 500 MOVERS
TOP
LEN 13.798%
GM 5.13%
EXPE 5.04%
DHI 4.48%
DOW 4.479%
BOTTOM
NRG 16.713%
ABBV 5.233%
VIAC 4.052%
AES 3.729%
FTNT 3.62%

Quote of the Day
We told the Wall Streeters that we will focus on building the long-term health of our company, that we are going to invest in our product development and in our clients, and you just have to battle it out with them.
- Palantir CEO Alex Karp on Wall Street's short-term focus and how it detracts companies from taking a longer-term view.

Sponsored Content
2021's Hottest Electric Vehicle Stocks – Yours Free
This year could be the biggest one yet for the unstoppable electric vehicle megatrend — but if you're looking to take advantage, the time to act is now.

That's why Luke Lango has just released his picks for the 11 best EV stocks of 2021.

Each one has been hand-selected for its potential to deliver life-changing profits as electric vehicles continue to disrupt the automotive industry.

Download the report HERE.


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