Monday, August 9, 2021

🏠Housing Bust 2.0 Ahead?🏠

Good morning. Each economic crisis is different than the last. Those expecting a...
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. Each economic crisis is different than the last. Those expecting a repeat of the housing crisis during Covid were mistaken, given a big jump in housing prices. That's because homeowners have had a decade to recover, and tight lending standards ensure that only a small number of homeowners today are underwater on their mortgage.

However, a crisis is brewing with the CDC's on-again/off-again eviction moratorium. Already on dubious legal ground before it ended in July, the organization has kicked the can down the road and extended again. While that means renters can skip their rent payments and live for free, property owners are still on the hook for maintenance, mortgage payments and, yes, taxes. The sooner this standoff ends, the less likely there will be any trouble in the housing market. Until then, there's a possibility that some parts of the market may be in for a wild ride.

Now here's the rest of the news:

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MARKETS
DOW 35,208.64 +0.41%
S&P 4,436.54 +0.17%
NASDAQ 14,835.76 +0.40%
*As of market close
Stocks traded mixed into the weekend, with the Nasdaq dropping.
Oil dropped 1.5 percent, closing at $68.08 per barrel.
Gold dropped 2.6 percent, last going for $1,757 per ounce.
Cryptocurrencies generally traded higher, with Bitcoin at $42,938 at the stock market close.

Today's TOP TIPS
This Global Cloud Play Could Become a European Tech Giant

Companies that can pivot to new business lines can thrive. Those that don't are likely to be poor performers at best, or go out of business.

One European conglomerate, in business for over a century, is looking to expand into the cloud space, going toe-to-toe with big US tech giants. That's resulting in strong operational performance, and a chance to move beyond industrial roots.

» FULL STORY


Insider Trading Report: CVS Health Corp (CVS)
Edward Ludwig, a director at CVS Health Corp (CVS), recently picked up 3,000 shares. The buy increased his stake by nearly 12 percent, at a total value of around $240,000.

This marks the first insider buy since last February, also from the same director. Company insiders have largely been sellers over the past three years, including both executives and directors. As with many large-cap companies, the sales appear tied to the exercise of stock options.

» FULL STORY

Unusual Options Activity: NOV Inc (NOV)
Shares of oil and gas equipment company NOV (NOV) have been generally heading higher over the past year, with a number of healthy pullbacks along the way. However, one trader sees the possibility for another move higher in the next few months.

That's based on the November $14 calls. With 102 days until expiration, over 10,450 contracts traded against an open interest of 148, for a 71-fold rise in volume. The buyer of the calls paid about $1.13 to make the trade.

» FULL STORY

IN OTHER NEWS
Unemployment Drops to 5.4 Percent

The Bureau of Labor Statistics reports that over 943,000 jobs were added in July. That growth allowed the unemployment rate to drop to 5.4 percent, another low following the pandemic era. The June numbers were also revised upward to 938,000 positions. Overall, the job market is 5.7 million short of its pre-pandemic peak.
Delta Variant Rise in Asian Countries May Further Disrupt Supply Chains

A number of global manufacturing centers in Asian countries are warning that rising Delta variant cases may result in further disruptions to global supply chains. Crucial countries include South Korea, Vietnam, Malaysia, and Thailand, which have all benefitted in recent years from a global production shift outside of China.
SEC to Decide on Nasdaq Board Diversity Proposal

The Nasdaq exchange is looking to add gender and race requirements in corporate boards as a condition for listing. Boards that don't meet the Nasdaq requirements can still provide a written explanation for why they aren't doing so. The SEC will weigh in on whether or not the Nasdaq can make such a requirement for listing a company. Nearly three-quarters of Nasdaq companies would not have met the criteria in 2020.
United Airlines Requires All Employees to Get Covid Vaccines

United Airlines (UAL) is mandating vaccines for its workforce. Employees will have 5 weeks after September 20, or five weeks after the FDA fully approves a Covid vaccine, whichever comes first. The move impacts 67,000 employees, and puts pressure on other airliners to do the same.
SpaceX Stacks Full Starship for the First Time

Privately-held SpaceX has fully stacked its full Starship spacecraft for the first time. Standing at 390 feet tall, the prototype combines the Super Heavy booster along with the full complement of Raptor rocket engines. Next up is testing the disassembly process, but the company is still looking to make its first full orbital launch test by the end of the year.

S&P 500 MOVERS
TOP
CTVA 8.084%
M 6.239%
DXC 6.121%
BLL 5.521%
MNST 5.45%
BOTTOM
EXPE 7.916%
ZM 3.815%
ILMN 3.576%
IDXX 2.913%
VTR 2.801%

Quote of the Day
While uncertainty over monetary policy is likely to cause further bouts of volatility, we believe the Fed's move toward tapering is unlikely to prompt a reversal of the equity rally…Labor market slack, well anchored inflation expectations, and risks from the delta COVID-19 variant make interest rate increases before 2023 unlikely.
- A UBS strategy not on why the stock market is likely to continue rallying, even if the Federal Reserve announces a plan to taper its asset purchases later in the year.

Sponsored Content
Biden About to Unleash Bitcoin Crackdown?

Silicon Valley millionaire Jeff Brown called it in 2014, when he first bought Bitcoin.

In 2015, he called it again, when he publicly recommended Bitcoin at $240...

In 2016, he recommended Nvidia at $25... before it hit $799... and he predicted the #1 returning tech stock in 4 years out of 5...

In 2017, he called it again – when he recommended Bitcoin again along with two other cryptocurrencies, which have since soared as high as 924.3%...

Now he believes THIS could be his most profitable public recommendation to date!

Click here for the full details on his urgent new buy alert before it expires.


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