Friday, August 27, 2021

👋Inflation Isn’t Going Away Yet—Here’s Why👋

Good morning. The Federal Reserve continues to hint at eventually tapering its...
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. The Federal Reserve continues to hint at eventually tapering its bond-buying program. Until then, it's putting a lot of money into the market. With inflation rates at their highest in decades, many are looking for relief. Some see trends heading down already, as direct stimulus payments have ended.

However, Bank of America (BAC) has created a meter to determine factors that break down transitory inflation vs signs of persistent inflation. With a current reading of 100 out of 100, a number of trends point that higher inflation rates are here to stay, which could lead to a shock in the stock market if the those trends continue and overtake the "transitory" view that's boosting markets right now.

Now here's the rest of the news:

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MARKETS
DOW 35,213.12 -0.54%
S&P 4,469.92 -0.58%
NASDAQ 14,945.81 -0.64%
*As of market close
Stocks moved lower on Thursday, with all indices closing near their lows of the day.
Oil declined 0.7 percent, closing at $67.88 per barrel.
Gold rose 0.2 percent, last going for $1,795 per ounce.
Cryptocurrencies traded lower, with Bitcoin at $47,036 at the stock market close.

Today's TOP TIPS
The Wealth Effect Will Drive High-End Retailers Higher

Economic data continues to show that the rich got richer during the pandemic. Most were unaffected by shutdowns, and having wealth tied up in appreciating assets like stock and real estate increased their net worth.

That's also true well into the middle class, a trend that also benefits a number of higher-end retailers. Like the big box stores, these companies have held up well, as reduced spending in activities like attending concerts or going out to dine led to higher spending elsewhere.

» FULL STORY


Insider Trading Report: Six Flags Entertainment Corp (SIX)
Arik Ruchim, a director at Six Flags Entertainment Corp (SIX), recently bought 100,000 shares. The buy increased his stake by 1.2 percent, and came to a total purchase price of just over $3.8 million.

This follows a buy from the day before by the company president and CEO, who bought 13,200 shares. That buy came in at just under $500,000. Prior insider activity over the past year had previously been all sales until these buys.

» FULL STORY

Unusual Options Activity: Academy Sports and Outdoors (ASO)
Sporting goods retailer Academy Sports and Outdoors (ASO) is already up over 200 percent in the past year. One trader sees the opportunity for a further move higher.

That's based on the December $45 calls. With 112 days until expiration, over 9,800 contracts traded compared to a prior open interest of 121, for an 81-fold jump in volume. The buyer of the calls paid about $4.90 to make the trade.

» FULL STORY

IN OTHER NEWS
Jobless Claims Inch Up

Initial jobless claims hit 350,000 last week, a 1,000 rise over the week prior. The four-week moving average for claims fell to a pandemic-era low of 366,500. Unemployment benefit claims have also been trending down, a sign that the job market is continuing to recover.
Americans Migrating to Higher-Risk Climate Change Areas

Data from real estate risk providers indicate that of the top 50 counties most likely to face risks from changes in the climate, a majority saw an increase in population over the last 5 years. That includes low-lying coastal areas, as well as areas prone to storms, heat, drought, flood and fire. Areas ranked for the lowest risk saw a population drop of 1.4 percent over the past 5 years.
Oil Forms Golden Cross

Oil prices have formed a "golden cross," where the commodity's 50-day moving average has crossed over the 200-day moving average. This has happened just twice in the last 20 years, but each time oil has continued to rally from there, with a 20-50 percent move likely in the months ahead.
Taiwan Semiconductor Raises Prices

Taiwan Semiconductor (TSM), the world's largest manufacturer of semiconductor chips, will be raising prices by roughly 10 percent for its most advanced chips, and as much as 20 percent for less advanced chips. The price increases are to take effect later this year and into next year. This can impact the cost of everything from smartphones to new cars.
Picsart Hits Unicorn Valuation

Startup Picsart has raised $130 million in a valuation round led in part by SoftBank. The new raise values the company at over $1 billion, although the company declined to provide a precise figure. In its last round of funding in 2019, the firm was valued at $600 million. Presently, the firm has hit the $50 million ARR mark, and is set to hit $100 million this year.

S&P 500 MOVERS
TOP
ETSY 5.097%
NTAP 4.716%
MCHP 2.965%
CRM 2.645%
ADI 2.48%
BOTTOM
DLTR 12.077%
ADSK 9.373%
WDC 4.473%
GPS 4.221%
PVH 4.21%

Quote of the Day
The 10-year Treasury bond yield has continued rising in recent days and exploded higher in [Wednesday's] trading, sending a strong message that the Delta variant of Covid may be peaking in the U.S. which should improve confidence, restart economic reopenings, and drive investment flows toward small caps and cyclicals.
- Jim Paulsen, chief investment strategist at the Leuthold Group, on why the recent stock market's rally higher is being driven by a potential peak in Covid cases right now.

Sponsored Content
Veteran Tech Legend: "Biggest Investing Event in 400 Years"

He called the #1-returning tech stocks of 2016, 2018, 2019 AND 2020…

Now America's forecasting legend Jeff Brown declares:

"Nobody is paying attention to this technology…

But it's about to change the types of houses, cars & investments you can own (and profit from)…

In a way we haven't seen for 400+ years."

[VIDEO]: How Just $25 Cuts You In


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