Friday, August 13, 2021

📉The Great Mismatch that Could Lead to the Next Market Selloff📉

Good morning. The latest jobs numbers are looking good, with fewer new claims being filed...
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 latest jobs numbers are looking good, with fewer new claims being filed and unemployment dropping. But there's a critical mismatch: There are still over 10 million job openings and as many as 12 million still receiving some kind of unemployment benefit.

The Fed has committed to keeping the monetary spigot open while the labor market is under full employment, but some will always be between work or unable to work. This mismatch may start to resolve itself later in the year, as extended federal unemployment benefits end in states that didn't end the program early. A more normalized labor market could then spell trouble for stocks, as the Fed eases off the gas pedal. One mismatch will ultimately be replaced by another.


Now here's the rest of the news:
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MARKETS
DOW 35,499.71 +0.04%
S&P 4,460.82 +0.29%
NASDAQ 14,816.26 +0.35%
*As of market close
Stocks barely broke higher on Thursday, recovering from morning losses.
Oil declined 0.4 percent, closing at $68.97 per barrel.
Gold rose 0.1 percent, last going for $1,755 per ounce.
Cryptocurrencies pulled back, with Bitcoin at $44,409 at the stock market close.

Today's TOP TIPS
This Failed IPO Play Is Now Turning Around

The past few years has seen an explosion in companies going public through the IPO process. Most are successes, seeing shares immediately rise as they start trading. However, there have been a number of companies that have initially slid from their opening price, creating what's called a "failed IPO."

Some companies have been able to recover in time, most famously social media giant Facebook (FB) which had a failed IPO when it first went public.

» FULL STORY


Insider Trading Report: ConocoPhillips (COP)
R. A. Walker, a director at ConocoPhillips (COP) recently bought 22,500 shares. The stake represents an initial buy for the director, and came to a total cost of just under $1.5 million.

This marks the second insider buy since May at the company. As with many large cap companies, a number of insiders are also sellers, although the total insider activity has been rather small overall over the past two years.


» FULL STORY

Unusual Options Activity: Lithium Americas (LAC)
Shares of commodity producer Lithium Americas (LAC) have been somewhat rangebound over the past few months, but have started to trend higher in recent days. One trader sees that trend continuing.

That's based on the September $25 calls. With 36 days until expiration, over 15,585 contracts traded against an open interest of 290 for a 54-fold rise in volume. The buyer of the calls paid about $0.45 to make the trade.


» FULL STORY

IN OTHER NEWS
Home Prices, Sales Continue Rise

The media sales price for a single-family home rose in 182 of 183 metro areas in the second quarter of the year. In 94 percent of those areas, prices were up more than 10 percent from the prior year. Overall, average sales prices were up 22.9 percent in the second quarter compared to a year ago. While prices have been high, sales are on the rise as well, a sign of a potential slowdown in further price appreciation.
Producer Price Inflation Rises 7.8 Percent

Producer price inflation, which measure the prices that producers receive for their goods and services, rose 7.8 percent for the 12-month period ending in July. That's a new record high since the index was created in 2010. Economists generally expect the rate to come down, as inflation measures have stopped rising in a number of other indices.
Lumber Prices Stabilize

One piece of good news on the inflation front: Lumber prices have now dropped nearly 70 percent from their peak set in May. Prices are looking to potentially stabilize around $500 to $600 per 1,000 board feet. That's still higher than pre-pandemic levels, but should help moderate rising costs on any product that uses lumber, notably new homes.
Jobless Claims Drop for Third Straight Week

New claims for jobless benefits totaled just 375,000 last week, a decline for the third straight week. Last week's numbers of 385,000 were slightly revised upwards by 2,000. This still marks the lowest level since March 2020, but still remains at elevated levels.
TaxBit Raises $130 Million at $1.33 Billion Valuation

TaxBit, a software company providing tax and accounting software for the crytpo space, has raised $130 million in Series B funding. It last raised $100 million in a Series A funding just 5 months ago, and now has become a unicorn with a valuation of over $1.33 billion. The company was founded in 2017.

S&P 500 MOVERS
TOP
OGN  11.928%
COO 7.82%
IT 2.924%
CRM 2.522%
J 2.505%
BOTTOM
WDC 6.505%
MU 6.371%
AMAT 4.154%
KLAC 4.13%
LRCX 4.11%

Quote of the Day
Inflation has, at a minimum, paused. For both the headline and core figures, the monthly and annual numbers were stable or down from last month. Based on that data, inflation is certainly not on an unstoppable increase.
- Brad McMillan, chief investment officer at Commonwealth Financial Network, on why inflation rates are likely to moderate in the coming months, which should be conducive to the stock market continuing higher from here.

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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