 | | |  Good morning. For most, the headline of an economic article is usually what ends up being the key takeaway. That's just good journalism! Yet when the unemployment rate drops to 5.9 percent, as it did last Friday, that's not telling the whole story.
For instance, 55 percent of all new jobs created were in hospitality and the government. With restaurants reopening, of course we need waiters and bartenders again. While these can be good jobs with tips included, however, they're not high paying jobs. And most government jobs were teaching jobs, which also tends to be on the lower end of the pay scale, even as such jobs increasingly require advanced degrees.
The growth in these jobs points to a lopsided economic recovery, with manufacturing and white-collar jobs, which tend to be far higher paying, still lagging. And while that sounds bad, it still points to an economy that has room to grow.
Now here's the rest of the news:
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| | |  | DOW 34,787.93 | +0.45% | | | | S&P 4,352.41 | +0.75% | | | | NASDAQ 14,639.33 | +0.81% | | | | | *Stock markets were closed Monday, in observation of Independence Day. | | | | | | | |
| | | Another Share Drop Following Strong Earnings Points to a Rebound Opportunity | | | | It's a simple trading strategy: Find a company that's performing well and just posted great quarterly earnings numbers. Then, if shares drop because the company's guidance isn't bullish enough, buy the dip and wait for the rebound, following the fundamentals.
That's as strategy likely to pay off well in this market throughout earnings season. One such trade has already presented itself in Walgreens Boots Alliance (WBA).
» FULL STORY | | | | |
| | Insider Trading Report: Coinbase (COIN) | | | | ARK Fintech Innovation ETF, a fund with major holdings in the cryptocurrency space, bought shares of Coinbase (COIN) in late June. Buying nearly 82,000 shares, the fund paid out nearly $20.3 million for the shares. A related entity bought $53 million in shares the week before.
Since the company went public in April, insiders at the firm, including directors and major holders, have been sellers of shares.
» FULL STORY | | | | |
| | Unusual Options Activity: Discovery (DISCA) | | | | Shares of media giant Discovery (DISCA) surged higher at the start of the year, then imploded as a hedge fund blew up. In recent sessions, shares have started to trend higher. One trader is betting that the rally will continue.
That's based on the August $37.50 calls. Over 33,660 contracts traded against a prior open interest of 234, for a 144-fold jump in volume. The buyer of the calls paid about $0.58 to make the trade.
» FULL STORY | | | | |
| | • | Hiring Hits Fastest Rate in 10 Months
On the job front, hiring picked up to its fastest rate in 10 months. And wage growth slowed, a sign that the rush to fill jobs is slowing and employers may be pickier going forward as immediate needs are filled. In the meantime, payrolls are also on the rise, pointing to continued lower unemployment rates ahead. | | | | • | $35 Trillion Wealth Transfer Underway
Americans over the age of 70 have a net worth now over $35 trillion, or 27 percent of all US wealth. That's double the mount 15 years ago, and is also 157 percent of US GDP. This wealth is starting to move down to heirs, trusts, and charitable giving, and will likely accelerate in years to come as this generation passes on. | | | | • | Tesla Beats on Car Sales
Tesla Motors (TSLA) managed to sell over 200,000 cars in the past three months, more than double the same number from a year ago. The record sales have occurred following rising prices (normal for all cars right now), some PR issues between the company and China, and the supply shortage for semiconductor chips. | | | | • | FTC Accuses Broadcom with Monopoly
The Federal Trade Commission voted unanimously to accuse Broadcom (AVGO) with running an illegal monopoly, stating that the firm monopolizes the market for semiconductor components. The FTC has released a potential consent order which could potentially keep the company from keeping certain customers and otherwise make the market for competitors easier. | | | | • | China Launches Cybersecurity Probe on Didi
DiDi Global (DIDI), a mobility technology platform with some similarities to Uber and Lyft, just went public on the Nasdaq—right as China announced a cybersecurity investigation into the company. Citing national security risks, China is ordering the company to cease onboarding new customers. This may be part of a broader trend between the Chinese government and tech companies grappling over power. | | |
| | | | TOP | | | ORCL | 2.867% | | | | PAYC | 2.749% | | | | HLT | 2.581% | | | | KMX | 2.481% | | | | HTNT | 2.352% | | | | BOTTOM | | | IBM | 4.645% | | | | DVN | 2.437% | | | | BIDU | 2.363% | | | | MRO | 2.258% | | | | PENN | 2.186% | | | | |
| | |  | | I think the inflation fears have kind of weighed in and had investors thinking that we may be further along in the cycle than I think we actually are. ... I still think you have enough economic momentum that growth is going to stay strong, perhaps at a plateau, for the next year, which for me means you still want to be invested in things where earnings growth is more cyclical in nature. | | - Brent Schutte, chief investment strategist at Northwestern Mutual, on why inflation fears are on the wane and why the market may continue to move higher thanks to strong earnings growth. | |
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