Friday, August 6, 2021

😐It’s Called the Wall of Worry for a Reason😐

Good morning. Rising Delta-variant cases, inflation fears, supply chain issues......
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. Rising Delta-variant cases, inflation fears, supply chain issues—the market is dealing with a lot right now. That's caused the market to feel like it's sagging and about to drop, even when stocks are still just under all-time highs.

Looking at the big tech space, which is largely rallying once again, and which makes up the biggest part of the market, it's clear that the recent fears are just part of the "wall of worry" that the stock market sees during a bull market. That view is also supported by Goldman Sachs (GS), which recently increased its price target for the S&P 500 this year. While it may seem like the market can't possibly go any higher, if any of the known fears today go away, any subsequent rally will seem obvious in hindsight.

Now here's the rest of the news:

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MARKETS
DOW 35,064.25 +0.78%
S&P 4,429.10 +0.60%
NASDAQ 14,895.12 +0.78%
*As of market close
Stocks moved higher on Wednesday, with all three indices rising.
Oil rose 1.4 percent, closing at $69.10 per barrel.
Gold dropped 0.4 percent, last going for $1,807 per ounce.
Cryptocurrencies generally traded higher, with Bitcoin at $41,016 at the stock market close.

Today's TOP TIPS
This Overlooked Part of Tech Infrastructure Continues to Look Strong

The semiconductor shortage continues to wreak havoc on a number of industries. But other key tech components, and the companies that manufacture them, are also performing strongly right now.

That includes everything from server components to hard drives. There's been a tug of war between those two businesses over the years, based on falling, and now rising, PC sales. The Covid-driven boom in PC sales has been particularly good for hard drives.

» FULL STORY


Insider Trading Report: Beacon Roofing Supply (BECN)
CD&R Investment Associates IX, a major holder at Beacon Roofing Supply (BECN), recently added 108,056 shares. The buy increased the fund's stake by 0.75 percent, and came to a total price of just over $6 million.

This marks the second buy from this fund this year, constituting the sole insider buys. Otherwise, company insiders, including directors and executives, have largely been sellers of shares, although their sales are far less than this fund's purchases.

» FULL STORY

Unusual Options Activity: International Game Technology (IGT)
Shares of gambling and gaming company International Game Technology (IGT) have been trending down over the past few weeks as the threat of further economic lockdowns has risen. However, one trader sees the possibility for a rally higher.

That's based on the January $27 calls. With 168 days until expiration, over 10,055 contracts traded against a prior open interest of 101, a 99.5-fold jump in volume. The buyer of the calls paid about $0.48.

» FULL STORY

IN OTHER NEWS
Biden Unveils EV Plan

President Biden has proposed that half of all new car sales in the US be electric vehicles by the end of the decade. Current trends point to perhaps a quarter of all new sales being EVs, so the goal is an ambitions one, touching on everything from lithium mining to EV charging and manufacturing firms.
Exxon Considered "Net Zero" Carbon Pledge by 2050

After activist investors acquired a number of board seats, it's no surprise that energy giant ExxonMobil (XOM) is now looking into making a net-zero carbon pledge. A number of other energy companies have already done the same, and with a potential target date of 2050, the firm would have nearly 30 years to expand into alternative energies while still drilling for oil.
Viacom Inks $900 Million Deal for More South Park

While reporting an earnings beat, ViacomCBS (VIAC) reported that it signed a deal with the creators of South Park. The show will continue through a 30th season in 2027, and the deal also includes 14 original South Park films to the company's Paramount+ streaming service, with two to debut later this year.
Ethereum Completes London Hard Fork

Cryptocurrency Ethereum, which has become the key player for the growing NFT craze, recently completed a hard fork, known as the "London" upgrade. One big change is how Ethereum calculates transaction fees, in an attempt to smooth them out.
Bluecore Raises $125 Million on $1 Billion Valuation

Another day, another unicorn. Bluecore, a startup that provides e-commerce personalization, has just raised $125 million in Series E funding. The latest valuation puts the company's value at $1 billion, and a total of $225 million has been raised. The company sees further growth ahead following the big jump in e-commerce spending last year.

S&P 500 MOVERS
TOP
MELI 13.765%
PENN 9.0881%
WYNN 8.338%
RCL 7.557%
AAL 7.506%
BOTTOM
CAH 14.259%
CI 10.917%
ETSY 9.743%
DXC 8.203%
XRAY 7.076%

Quote of the Day
Many factors are likely driving worker shortages; concerns about catching the virus, childcare responsibilities, skills mismatches, and generous unemployment insurance benefits… [in the second half of the year] more competition for workers, particularly in the leisure and hospitality sector, will support acceleration in wage growth, boosting household incomes and consumer spending.
- Abbey Omodunbi, PNC Senior Economist, on the worker shortage, and how its resolution in the second half of the year is likely to drive the stock market higher.

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