Good morning. Michael Burry is a fund manager best known for going against the housing market in..
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. Michael Burry is a fund manager best known for going against the housing market in the runup to the meltdown. Today, Burry sees inflation as the biggest threat to the economy. And with prior stimulus measures boosting the price of everything from stocks to housing, the biggest threat is a nudge into hyperinflation. Burry sees that happening this year. Burry also sees the stock market as not only the greatest market bubble of all time, but the biggest by at least "two orders of magnitude." As investors adjust their return expectations for inflation, that bubble may burst.
Time will tell if he's right. But with corporate earnings growing strong and an economy reopening, less fiscal stimulus can likely cause inflation fears to cool down. But if inflation is a problem, going to cash is no solution. Another billionaire investor, Paul Tudor Jones, sees the best inflation hedges in commodities, gold, and cryptocurrencies.
Now here's the rest of the news:
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| | |  | DOW 34,299.99 | -0.27% | | | | S&P 4,246.71 | -0.20% | | | | NASDAQ 14,072.86 | -0.71% | | | | | *As of market close | | | • | Stocks traded down on Tuesday, with all three indices closing lower. | | | • | Oil rose 1.9 percent, closing at $72.24 per barrel. | | | • | Gold dropped 0.3 percent, hitting $1,860 per ounce. | | | • | Cryptocurrencies generally moved higher, with Bitcoin last at $39,729. | | | | | | | |
| | | This New Retail Favorite Stock Has Staying Power | | | | The past few weeks have seen a resurgence in trades popular with retail, rather than professional, investors. Some of these companies have some good stories behind them, and others have a good story and a good company behind them.
Case in point? Wendy's (WEN). The hamburger chain has become a favorite play on messaging boards. And with an astute social media presence, as well as a new app and loyalty program, it's making burgers feel high-tech.
» FULL STORY | | | | |
| | Insider Trading Report: Clearway Energy (CWEN) | | | | The Global Infrastructure Investor, a major holder in Clearway Energy (CWEN) recently bought 5,622 shares of the company. The buy came to a total purchase price of just over $144,000.
The fund has been a regular buyer of shares over the past two years. Company insiders have also otherwise been buyers over the past three years, with the last insider sale occurring in May of 2018. Overall, company executives own just under 1 percent of company shares.
» FULL STORY | | | | |
| | Unusual Options Activity: Intel (INTC) | | | | Shares of chipmaking company Intel (INTC) have been in a range over the past few months. One trader is betting on a move higher, and soon.
That's based on the July 2 $62.00 calls. With 16 days until expiration, over 58,560 contracts traded, a 264-fold rise in volume from the prior open interest of 223 contracts. The buyer of the calls paid about $0.27 for the contracts.
» FULL STORY | | | | |
| | • | Retail Sales Drop 1.3 Percent in May
Retail sales slowed 1.3 percent in May. Consumers reduced purchases of big-ticket items and shifted towards dining out instead. While a slight slowdown may raise calls for additional stimulus or other measures, spending is up 28 percent compared to May 2020, so this may be a return to a more normal fluctuation. | | | | • | Producer Prices Jump 6.6 Percent
Producer prices rose 6.6 percent between May 2020 and May 2021. That's the largest rise on record since the BLS started collecting the data in 2010. The jump comes among rising demand, supply chain constraints, and strong commodity prices. A majority of the price increase for producers came from the higher price of goods. | | | | • | US, EU Agree to Five-Year Truce on Airplane Subsidies
The 17-year-old legal battle between the US and EU on airline subsidies is on hold for now, as both sides have agreed to a truce. The battle has been waged by both sides over subsidies to Boeing (BA) and Airbus (EADSY). The move comes as President Biden and European Commission President Ursula von der Leyen met over the G7 meeting. | | | | • | Best Buy Shifts Away from Electronics
Retailer Best Buy (BBY) is adding new items to sell, shifting the company away from electronics and related goods. Citing a reopening economy and the housing market, the retailer is looking to add items such as grills and luggage. These categories will also be included on the company's ecommerce site, where sales rose 144 percent last year. | | | | • | Dusty Raises $16.5 Million in Series A Funding
Dusty, a commercial construction robotics firm, has raised $16.5 million in Series A funding. In total, the company has raised $23.7 million in funding. The company sees robust growth and demand for robotics in construction, which can help keep costs low, lower workplace injuries, and speed up construction time for projects. | | |
| | | | TOP | | | FANG | 5.102% | | | | OGN | 5.053% | | | | NOV | 4.164% | | | | XOM | 3.641% | | | | OXY | 3.253% | | | | BOTTOM | | | ARE | 5.069% | | | | FCX | 4.762% | | | | TTWO | 4.364% | | | | ATVI | 3.237% | | | | VRTX | 2.993% | | | | |
| | |  | | If you look at our balance sheet, we have $500 billion in cash, we've actually been effectively stockpiling more and more cash waiting for opportunities to invest at higher rates. I do expect to see higher rates and more inflation, and we're prepared for that. | | - Jamie Dimon, JPMorgan Chase CEO, on why the bank is looking to increase its cash balance, as higher inflation will mean an opportunity to invest in bonds at higher interest rates.  | |
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