Friday, June 11, 2021

😏 Will this Powerful Effect Offset Inflation? 😏

Good morning. In hindsight, the monetary policy of the 2010s could have been far worse. Featuring..
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. In hindsight, the monetary policy of the 2010s could have been far worse. Featuring the same low interest rates and bond-buying by the Fed as today, most of that money went to shoring up banks and housing, two areas hit hard in the last recession. Rising prices there created a "wealth effect." As individuals saw their assets like homes and 401k plans recover, they were confident about spending more. The economy improved, and, before Covid struck, the Fed was even beginning to ever-so-slightly shrink its balance sheet.

Today, we also have a fiscal policy on top of that 2010s-era monetary policy. That includes stimulus checks, enhanced employment benefits, and other programs that have started to fuel the worst inflation in 13 years. But if prices of assets such as stocks and homes can outpace that inflation, the fears may cool, and the economy may continue to grow. Time will tell who wins that tug of war.

Now here's the rest of the news:

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MARKETS
DOW 34,466.89 +0.06%
S&P 4,239.30 +0.47%
NASDAQ 14,020.33 +0.78%
*As of market close
Stocks headed higher on Thursday, with tech leading the major indices higher.
Oil rose 0.4 percent, closing the trading day at $70.24.
Gold rose 0.2 percent, hitting $1,899 per ounce.
Cryptocurrencies generally rallied, with Bitcoin last at $36,553.

Today's TOP TIPS
This Economic Bellwether Sees Growth, Even with Some Inflation
Few companies can claim a title to being able to provide investors with a view of the global economy. Global shipping companies are such companies. They can tell when volume is up or down, determine the impact of changing fuel costs, and other measures.

With United Parcel Service (UPS) looking to rebrand, the company is also looking at substantial growth as the global economy continues to recover.

» FULL STORY

Insider Trading Report: 8x8 Inc (EGHT)
David Sipes, CEO of 8x8 Inc (EGHT), recently bought 43,000 additional shares. The buy increased his holdings by over 9 percent, and came to a total purchase price of just over $1 million.

This is the first buy from a company insider since 2019. Company insiders have generally been sellers of shares, which is typical for technology companies that tend to lavish stock options on executives.

» FULL STORY

Unusual Options Activity: The Geo Group (GEO)
Shares of for-profit prison firm The Geo Group (GEO) has seen a massive jump in shares, with the stock price moving as much as 50 percent higher at times on Wednesday. At least one trader sees further jumps in shares likely in the next week.

That's based on the June 18th $20 calls. Over 12,200 contracts traded against a prior open interest of 110, for a similar 110-fold rise in volume. The buyer of the options paid about $0.23.

» FULL STORY

IN OTHER NEWS
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Inflation Comes in Hot

Consumer prices saw a 5 percent rise in May. That's the fastest pace since the summer of 2008 when oil prices exploded. The signs continue to show higher levels of inflation than in the past, and shortages have played a role. Demand for automobiles hit its highest levels in years, and a shortage of new cars caused both new and used vehicle prices to rise.
Coinbase Partners on 401k Crypto Plan

Cryptocurrency brokerage Coinbase (COIN) has announced a deal with ForUsAll Inc to provide a plan to allow investors to allocate up to 5 percent of their 401k plan directly into cryptocurrencies. ForUsAll has over 400 employer clients, and over $1.7 billion in retirement plan assets.
JBS Pays $11 Million in Cyberattack

JBS, the beef processor that had to shut down most of its operations last week due to a cyberattack, announced that it paid an $11 million ransom. The payment was made after most of the facility's operations had come back online. As with other recent hacks, the attack is believed to have been done by a gang based out of Eastern Europe or possibly Russia.
Homeowners See $2 Trillion Gain in First Quarter

Part of the rising inflation rate has come in home prices. For existing homeowners, the average gain was around $33,400 to the increase in their home's value since the start of the year. The price reflects strong demand for homes amid lackluster supply in many areas seeing migration growth in the past year.
Eightfold Hits $2.1 Billion Valuation on Latest Funding

Eightfold AI, an artificial intelligence and deep learning startup working to help companies find and retain workers, has raised $220 million in Series E funding. Led by SoftBank, the funding values the company at $2.1 billion, and it has raised $410 million in overall funding.

S&P 500 MOVERS
TOP
OGN 6.608%
NOW 5.255%
ENPH 4.768%
ALGN 4.552%
MELI 4.306%
BOTTOM
NLSN 4.695%
SIVB 4.672%
NVR 3.964%
CAT 3.801%
MHK 3.76%

Quote of the Day
Airfares, hotels and event admissions all registered big price increases and contributed to the spike in CPI inflation in April. But these categories are merely recovering declines seen last year, and the Fed is unlikely to be swayed if their prices continue to accelerate. Rent, owners' equivalent rent and medical care services (collectively 50% of the core CPI basket) inflation are muted.
- Wells Fargo bond analysts in a note to clients on the areas likely to show the greatest signs of inflation, and where many of those areas are likely to be temporary rather than signs of persistent inflation.

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