Friday, July 16, 2021

😱 The Elites Have Lost the Narrative 😱

Good morning. It's easy to bash the Federal Reserve. They have a dual mandate, to keep...
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. It's easy to bash the Federal Reserve. They have a dual mandate, to keep unemployment down and prices stable. That's usually a trade-off in the best of times. With the unique challenges of a pandemic, it's no surprise that it's an even bigger challenge than usual.

When testifying before Congress on Thursday, Fed Chairman Jerome Powell stated that he's "not concerned" with the rising costs of living. In a world where inflation in transitory, that's no surprise. In the real world, where people have to put food on the table, though, such statements come off as elitist and out of touch with the needs of average, everyday Americans. Given the central bank's "say anything to keep markets going" attitude, traders should continue to expect some volatility this earnings season.

Now here's the rest of the news:

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MARKETS
DOW 34,987.02 +0.15%
S&P 4,360.03 -0.33%
NASDAQ 14,543.13 -0.70%
*As of market close
Stocks traded mixed on Thursday, with the Dow closing at a slight gain.
Oil dropped 2.1 percent, closing at $71.58 per barrel.
Gold rose 0.2 percent, last going for $1,829 per ounce.
Cryptocurrencies trended down, with Bitcoin at $31,604 at the stock market close.

Today's TOP TIPS
Strong Airline Earnings Point to Solid Future Returns

The airline industry is back. Earnings season is still unfolding, but the airlines, which looked like they may be facing years of challenge ahead at the start of the pandemic, are already at or near profitability.

Delta Airlines (DAL) has led the way with earnings so far. The company earned $1.02 per share, excluding special items on its earnings. The move comes as domestic travel rebounds to pre-pandemic levels.

» FULL STORY


Insider Trading Report: Super League Gaming Inc (SLGG)
Michael Keller, a director at Super League Gaming Inc (SLGG), recently picked up 20,000 shares. The buy increased his holdings by over 11 percent, and came to a total purchase price of just over $97,000.

This is the second buy from this insider in the past year, following a 17,000 share buy in April. Company insiders, including C-suite executives and directors have all been buyers in the past 3 years. Overall, company insiders own over 14 percent of shares.

» FULL STORY

Unusual Options Activity: Ford (F)
Shares of car manufacturing giant Ford (F) have been doing well this year. One trader sees that trend continuing well into the next year.

That's based on the June 2022 $22 calls. The trade has 336 days left until expiration. Over 6,200 contracts traded against a prior open interest of 320, for a 19-fold rise in volume. Based on where shares last traded in the low $14 range, the stock price would need to surge over 54 percent to move in-the-money.

» FULL STORY

IN OTHER NEWS
Jobless Claims Continue Decline

Unemployment benefit applications dropped to 360,000 last week, a pandemic low. That's a slight drop from the 386,000 one week earlier, and looks like a pandemic low. Continuing claims dropped by 126,000 to 3.24 million, the lowest level since March 2020. The drop comes amidst an economic recovery, labor shortage, and an end to additional unemployment payments.
China on Track for 2021 Growth Target

China reported that its GDP grew by 7.9 percent in the second quarter of 2021. While slightly missing forecasts in the 8.0 to 8.2 percent range, the world's second-largest economy reports that it expects to hit its overall growth target for 2021.
Big Tech Moves Against New FTC Chair

A number of big tech companies are looking to disarm the newest Federal Trade Commission Chair, Lina Khan. These companies are looking to have her recuse herself on issues involving antitrust cases in big tech. The case is that Khan's prior writings suggest that she would rule in favor of breaking up big tech, or at least finding stronger liability for antitrust issues than in the past.
Consumer Product Safety Commission Sues Amazon

The US Consumer Product Safety Commission (CPSC) is suing Amazon (AMZN), on the grounds that the company is selling hazardous products to its consumers. Among the products listed by the CPSC as dangerous include defective carbon monoxide alarms, flammable children's pajamas, and hair dryers that could electrocute if dropped in water.
Autonomous Vehicle Startup Aurora Looks to Go Public

Aurora, an autonomous vehicle startup firm, is looking to go public in a $13 billion deal. The deal will be via a SPAC, or special purpose acquisition company, rather than a traditional IPO. The company was last listed at a $10 billion valuation, when it bought the self-driving unit owned by Uber (UBER).

S&P 500 MOVERS
TOP
AIG 3.577%
USB 3.211%
TFC 2.627%
ES 2.463%
CAG 2.331%
BOTTOM
TFX 9.838%
BIIB 6.789%
NXPI 4.49%
WDC 4.428%
NVDA 4.411%

Quote of the Day
Fed chair Powell helped calm fears by again suggesting these bad inflation reports were merely transitory. Evidently, Bond investors are buying the Fed's inflation narrative.
- Jim Paulsen, chief investment strategist at the Leuthold Group, on bond yields dropping in spite of inflation rates continuing to rise at their highest rates in 13 years.

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