Tuesday, June 29, 2021

😏 Is This Sector About to Lead the Market? 😏

Good morning. Despite the noise of the past few weeks, investors seem to be fine with the idea..
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. Despite the noise of the past few weeks, investors seem to be fine with the idea that today's high inflation rates will end up being a blip on the radar. The biggest sign? Big tech stocks are starting to lead the market higher again.

Microsoft (MSFT) hit a new record high as it announced its first new version of Windows in over 7 years. And chip companies are working overtime to resolve supply chains, which has been pushing the Nasdaq higher. When big tech companies lead the market, stocks tend to have their strongest moves higher. The past few months, which has seen other sectors such as energy rally, have been marked by a more sideways feel to stocks. So keep an eye on big tech moving higher.

Now here's the rest of the news:

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MARKETS
DOW 34,283.77 -0.44%
S&P 4,290.58 +0.23%
NASDAQ 14,500.51 +0.98%
*As of market close
Stocks traded mixed on Monday, with the Nasdaq and S&P 500 closing at record highs.
Oil dropped 1.7 percent, closing at $72.83 per barrel.
Gold traded flat, last trading at $1,779 per ounce.
Cryptocurrencies trended higher, with Bitcoin at $34,375 at the stock market close.

Today's TOP TIPS
It's Still a Low-Yield World, So Buy Dividend Stocks That Do This
With inflation running at annualized rates near 5 percent right now, the notion of locking up money in a 10-year government bond that pays just 1.5 percent seems ridiculous.

But rather than go all the way up the risk scale, investors looking for income can find better starting yields and even find opportunities to grow that income over time. But instead of the bond markets, those with a multi-year time horizon will likely do best with dividend growth stocks.

» FULL STORY

Insider Trading Report: R.R. Donnelley & Sons (RRD)
Chatham Asset Management, a major holder at R.R. Donnelley & Sons (RRD), recently added to its stake with a 90,000 share buy. The total cost came to just over $574,000, and increased the fund's total holdings in the company by 0.8 percent.

This buy adds on to a buy earlier in June, as well as a 1.4 million share buy back in May. Overall, the fund has been the biggest mover of shares in the past three years.

» FULL STORY

Unusual Options Activity: L Brands (LB)
Shares of consumer apparel giant L Brands (LB) have been in a strong uptrend over the past six months. One trader sees the possibility of a further move higher in the coming days.

That's based on the July 9 $77 calls. Expiring in 10 days, over 3,820 contracts traded against an open interest of 125, for a 31-fold rise in volume. The buyer of the calls paid about $0.72 on average.

» FULL STORY

IN OTHER NEWS
El-Erian Warns on Fed Policy

Mohamaed El-Erian, chief economic advisor at Allianz, warned that the Federal Reserve is underestimating inflation, which in turn could increase the risk of the US falling into a recession. That's based on the view that inflation isn't as transitory as central bankers claim it is, as a more permanent rising inflation would need to be met with higher interest rates.
UBS Moves to Hybrid Work Model

Bucking the trend of other big banks, Swiss giant UBS Group (UBS) is proposing a hybrid schedule going forward, allowing a mix of work from home and the office for its employees. Most big banks are pushing to have their staff back at work full time by Labor Day, and most are also requiring proof of vaccination against Covid-19.
SpaceX Looks for First Orbital Test Launch Next Month

Privately-held SpaceX is looking to launch its spacecraft, dubbed Starship, next month, marking the first orbital flight test. So far, the craft has been making shorter test flights and has remained in the Earth's atmosphere, while testing its launch and landing equipment. The craft operates a fully-reusable heavy booster rocket, an innovative development that cuts down launch costs substantially.
Charleston Plantation Sets Real Estate Record

A 200-year-old estate sitting on 16 acres near the Charleston, South Carolina market has sold for $20.5 million. That's a record for the area, and a sign that high-end properties continue to appreciate in value as much as smaller home are during this real estate boom. The property sits on Kiawah Island, which has seen luxury sales soar by over 170 percent in the past year.
Bitcoin Pops Higher as Mexican Billionaire Works on Integration

Mexican billionaire Ricardo Salinas Pliego stated that his bank is working on becoming the first Mexican lender to accept Bitcoin. The billionaire sees the cryptocurrency as a way for investors to diversify their holdings and avoid the depreciation of the Mexican peso.

S&P 500 MOVERS
TOP
ENPH 7.378%
ETSY 7.365%
NRG 6.106%
NVDA 5.013%
VIAC 4.975%
BOTTOM
CCL 7.039%
RCL 6.497%
NCLH 6.091%
NOV 6.003%
AIV 5.842%

Quote of the Day
It was right down the strike zone…consistent with the idea that the surge in inflation will be transitory, that it's related to the reopening of the economy and some of disruptions that are resulting from that quick reopening.
- Mark Zandi, chief economist at Moody's Analytics, regarding the latest inflation numbers, which are far higher than average, but also appear to be based on the last round of stimulus and some lingering supply chain issues.

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But I haven't done it the usual way…

My method is different. It's unlike anything you've probably ever seen before.

We're unveiling it right now for just $19.

That's the lowest price my publisher has EVER offered for a trading research service…

And it won't be available for long.

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