Good morning. Rising interest rates, out-of-control government spending, big funds imploding…
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.
 | | |  | DOW 33,070.94 | -0.30% | | | | S&P 3,958.85 | -0.31% | | | | NASDAQ 13,045.39 | -0.11% | | | | | *As of market close | | | • | Stocks traded down on Tuesday, with all indices dropping into the close. | | | • | Oil prices dropped 2 percent, last trading at $60.35. | | | • | Gold declined 1.8 percent, changing hands at $1,683 per ounce. | | | • | Cryptocurrencies moved higher, with Bitcoin last at $59,196. | | | | | | | |
| | | This "Pandemic Trade" Still Has Upside Potential On a Recovery | | | | Last year's pandemic lockdowns created a number of shifting trends in retail. One of them involved purchasing fewer apparel items for a business market, and more leisure and athletic wear. With the pandemic ending, traders are starting to look elsewhere. But a few companies in the space may still thrive.
One potential continued winner is Lululemon (LULU). With fashion trends still supporting casualwear, the firm may still be a winner.
» FULL STORY | | | | |
| | Insider Trading Report: Gold Resource Corp (GORO) | | | | Ronald Little, a director at Gold Resource Corp (GORO), recently bought 20,000 shares. The buy doubled his holdings, and came to a total cost of just over $52,000.
Over the past few years, buyers have far outnumbered sellers. Company insiders were bigger sellers of shares back in 2018, however, at a time when shares were priced twice as high as they are today. Overall, insiders own just over 3 percent of shares.
» FULL STORY | | | | |
| | Unusual Options Activity: Discovery (DISCA) | | | | The past week has seen a large selloff in shares of Discovery (DISCA), as a hedge fund went through a forced liquidation. One trader sees a potential rebound in the coming months.
That's based on the May 2021 $75 calls. Expiring in 51 days, over 12,660 options traded, a 41-fold rise in volume from the prior open interest of 307. The buyer paid about $0.50 for the trade.
» FULL STORY | | | | |
| | • | Home Prices See Fastest Growth in 15 Years
Home prices rose 11.2 percent for the year ending in January. That's the fastest rise since February 2006. The combination of low interest rates and a demand for more space, particularly in world that will still have some work-from-home trends have led to the push higher. Supply remains relatively low as well, suggesting that further growth in home prices may be ahead. | | | | • | 10-Year Treasury Bonds Hit 14 Month Highs
10-year Treasury bonds have moved to a 14-month high yield of 1.749 percent. That move has occurred as investors see further economic growth this year, and a potential $3 trillion infrastructure funding bill that will have to be paid for somehow. While tech stocks have continued to struggle, most investors don't see any major issues unless (until?) the 10-year yield creeps up to 2 percent. | | | | • | Regulators Missed Warning Signs from Archegos Capital
Archegos Capital Management, the hedge fund that was forced to liquidate some large-cap stocks last week, managed to avoid regulatory scrutiny despite its massive leverage by using a family office structure. Fund implosions are relatively common, but the risks are bigger thanks to low interest rates, which allow funds to take on more leverage relative to the costs. Nevertheless, the crisis here appears to be passing. | | | | • | Cameo Joins Unicorn Club
Cameo, a startup video request stie that allows users to hire celebrities to record a short message, just closed $100 million in funding. The latest valuation puts the company in the unicorn club, with a total valuation now exceeding $1 billion. The company saw a big boost last year as the pandemic freed up time for celebrities to access the platform. | | | | • | Fed May Allow Bank Dividend Hikes
The Federal Reserve has had oversight over bank buybacks and dividends dating back to the Great Recession. Last year's rush to liquidity at the start of the pandemic led to reduced dividends and buybacks from the banking sector. Now, the Fed may look into allowing these companies to increase their payouts to shareholders as the economy recovers, as an improving economy will likely lead to expanding profits for bank stocks. | | |
| | | | TOP | | | DXC | 9.11% | | | | BIDU | 6.61% | | | | ENPH | 5.952% | | | | CZR | 5.689% | | | | AIV | 5.415% | | | | BOTTOM | | | ILMN | 6.592% | | | | MKTX | 4.051% | | | | NEM | 3.668% | | | | AVGO | 3.483% | | | | VRSN | 3.137% | | | | |
| | |  | | Between the IPOs and the big SPAC attack and the big secondaries, we're being flooded with stock right now, so the market's going to struggle until Wall Street turns off the spigot. Unfortunately, there's no sign of that happening yet, so you have to keep being careful. | | - CNBC analyst Jim Cramer on why the large number of companies going public this year are soaking up a lot of capital, and likely keeping the market from heading significantly higher in the short term. | |
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