Good morning. Markets closed one of their toughest weeks in months. For many traders, the pain is
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. Markets closed one of their toughest weeks in months. For many traders, the pain is palpable. But looking at the last month or six months, it's clear that stocks have been in a strong uptrend. Since nothing ever moves in a straight line, we're still nowhere near a potential downtrend.
Remember, market corrections of 5-10 percent are fairly common, especially after the great run we've had in the market since November. And the move in the bond market, with 10-year yields rising from 1 percent to 1.5 percent, actually marks one of the biggest bear markets in bonds ever, almost as bad at the "taper tantrum" in 2013. And it's a move that, even if it continues, likewise won't move in a straight line.
Have you made any changes to your trading strategy in this market?
Hit reply and let us know how you're handling the increased volatility.
Now here's the rest of the news:
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| | |  | DOW 30,926.84 | -1.51% | | | | S&P 3,810.84 | -0.48% | | |  | NASDAQ 13,192.34 | +0.56% | | | | | *As of market close | | | • | Stocks traded mixed on Friday, with the tech-heavy Nasdaq getting a reprieve. | | | • | Oil prices slid 2.9 percent, closing the day at $61.70. | | | • | Gold declined 2.6 percent with the metal trading at $1,730 per ounce. | | | • | Cryptocurrencies continued their decline, with Bitcoin last at $46,725. | | | | | | | |
| | | Retail Rebound Plays Look Attractive Relative to the Risk | | | | Most companies looking to survive in the past year moved heavily towards ecommerce sales. However, a few companies have a business model known as the "found treasures." They offer steep discounts compared to the non-sale price, but the catch is that buyers have to find them by scrounging through a physical store.
One such play is Ross Stores (ROST). Shares are just now climbing back to pre-pandemic levels. And shares look like a bargain as shoppers look forward to perusing those treasures once again.
» FULL STORY | | | | |
| | Insider Trading Report: Ford Motors (F) | | | | John Thornton, a director at Ford Motor Company (F), recently picked up 8,620 shares. The buy increased his holdings by 3.5 percent, and came to a total cost of just over $100,000.
This is the first insider buy since last April. In 2018 and 2019, insiders were generally more likely to be sellers of shares, but the past year has only seen insiders pick up shares of the car maker.
» FULL STORY | | | | |
| | Unusual Options Activity: Adobe (ADBE) | | | | Software giant Adobe (ADBE) has been trading in a range for the past few months. The recent market weakness has sent shares towards the lower end of its range, as well as its 200-day moving average. At least one trader is betting that shares will bounce higher.
That's based on the June $420 call options. Over 5,010 contracts traded, a 36-fold rise from the prior open interest of 138. The option expires in 109 days.
» FULL STORY | | | | |
| | • | Personal Income Grows 10 Percent in January
Fueled in part by stimulus measures, personal income grew by 10 percent in January, the second largest rise on record. The largest gain was last April, during the first round of stimulus payments. With the House passing a $1.9 trillion Covid aid bill with a potential for up to another $1,400 in payments (contingent on income), a new record may be set soon. | | | | • | Airbnb Beats in First Report as Publicly Traded Company
In its first quarterly report as a publicly traded company, Airbnb (ABNB) reported revenue of $859 million. While down 22 percent from a year ago, the numbers look strong given the impact the pandemic has had on travel and lodging. Shares rallied 15 percent on the news, but many analysts are cautious on valuation. | | | | • | Market Turbulence A Sign of a Healthy Economy?
Last week's market selloff may be good news. With rising bond yields as the catalyst, it may be a sign that traders are pricing in a strong recovery in the second half of the year. If the economy does strengthen substantially, the argument is that the Federal Reserve will be forced to withdraw its stimulus measures earlier than many are expecting. | | | | • | Virgin Galactic Drops on Test Delay
Space tourism firm Virgin Galactic (SPCE), saw shares drop thanks to a quarterly loss as well as a delay on a key test flight. Originally set before the end of February, the launch has been moved to May. That also pushes back the start of the Unity spaceflight to early 2022—when the company can finally put tourists in space. Still, traders who bought at the start of the year are now "only" up 60 percent. | | | | • | Fed Blames Payment System Outage on Human Error
Key financial clearinghouse services were down for about 4 hours last Wednesday. The Federal Reserve explained that the outage was caused by human error, which caused an automated data center maintenance process to kick in during business hours. The Fed extended its hours to clear the backlog of payments. | | |
| | | | TOP | | | TRIP | 13.964% | | | | ETSY | 11.484% | | | | ENPH | 5.192% | | | | CCL | 5.026% | | | | SBUX | 4.407% | | | | BOTTOM | | | EOG | 8.542% | | | | UHS | 7.108% | | | | CRM | 6.31% | | | | BMRM | 5.296% | | | | FCX | 4.961% | | | | |
| | |  | | If the market begins to believe that the Fed has somehow lost control of where the bond market is going, all that idea of a taper tantrum will show up. | | - Art Cashin, director of floor operations at UBS, on why the stock market had such a tumultuous week as the 10-year bond yield hit 1.5 percent. | |
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