Good morning. August is usually a slow month for investors. But, the market usually goes...
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. August is usually a slow month for investors. But, the market usually goes for a wild ride in September and October, which are historically the two worst-performing months of the year. While October makes the history books for all the big down days (1929, 1987, 2008), September is worse on average. In the meantime, while the economic numbers look great compared to a year ago, consumers are drawing down savings substantially. And the end of a national eviction moratorium could lead to some unrest in the housing market. These factors all point for some strong reasons to hedge, either by selling covered calls against stocks, or by raising some cash. Traditional hedges like gold haven't been a strong performer here, and likely won't unless it's backed by another immediate stimulus program. Now here's the rest of the news: | | | | | | | | | | DOW 34,935.34 | -0.43% | | | | S&P 4,395.30 | -0.54% | | | | NASDAQ 14,672.68 | -0.71% | | | | *As of market close | | • | Stocks closed lower going into the weekend, but still ended up for the month of July. | | • | Oil rose 0.3 percent, closing at $73.85 per barrel. | | • | Gold declined 1 percent, last going for $1,817 per ounce. | | • | Cryptocurrencies traded mixed, with Bitcoin at $39,806 at the stock market close. | | | | | | | | | | Insider Trading Report: Brown & Brown (BRO) | | | | Palmer Proctor, a director at Brown & Brown Inc (BRO), recently bought 2,000 shares. The buy increased his stake by over 5.5 percent, and came to a total purchase price of just under $110,000. This is the second insider buy of the year, following a 10,000 share buy from another director in January. That buy is already up 26 percent. Overall, company insiders in the c-suite have been net sellers over the past 3 years. » FULL STORY | | | | | | Unusual Options Activity: ExxonMobil (XOM) | | | | Shares of energy giant ExxonMobil (XOM) have traded about in line with the energy sector in the past few months. First, shares saw a huge rise on rising oil prices, then were hit in recent weeks on the latest OPEC news. One trader sees the starting recovery in shares to continue. That's based on the August $64 calls. Expiring in 18 days, over 18,720 contracts traded against an open interest of 143, for a 131-fold explosion in volume.
» FULL STORY | | | | | | • | Chinese Tech Stocks Have Worst Month Since 2008
China's crackdown on tech stocks has led to the biggest drop for the space since 2008. Adding to the concern is the SEC, which is halting the IPOs of a number of Chinese technology stocks until there's a clearer regulatory picture. | | | | • | Household Spending Rose in June
Consumers continued with their spending patterns in June, with overall household spending on the rise. However, with an increase in Delta variant cases of Covid-19, economists caution that the trend may reverse in the months ahead, particularly in areas where local governments and businesses are reinstating Covid-related rules. | | | | • | PCE Inflation Hits 3.5 Percent Year Over Year
Personal consumption expenditures, a measure of inflation widely followed by the Fed, rose 3.5 percent year-over-year in June. That's the fastest rise since 1991. The Fed continues to expect inflation to moderate in the months ahead as supply chain issues and economic reopenings are resolved. | | | | • | Scarlett Johansson Sues Disney Over Streaming Release of "Black Widow"
Actress Scarlett Johansson is suing The Walt Disney Company (DIS) over its decision to release her latest film, "Black Widow," simultaneously on streaming platform Disney+ and theaters. Her contract bases her salary for the film, in part, on the film's total box office haul, and delaying the release to streaming may have increased theater attendance. | | | | • | EU Issues Amazon Record Fine Over Data Misuse
Luxembourg's National Commission for Data Protection has issued a record $887 million fine against Amazon (AMZN) over the way it uses customer data for targeted advertising. Amazon intends to defend itself against the suit, and is looking to appeal the ruling. | | | | | | TOP | | DXCM | 13.038% | | | KLAC | 8.994% | | | FTV | 5.243% | | | BIO | 4.579% | | | LBTYK | 4.473% | | | BOTTOM | | NWL | 9.074% | | | ETSY | 7.775% | | | AMZN | 7.565% | | | EBAY | 7.084% | | | TCOM | 6.525% | | | | | | | | | With U.S. businesses reopen for business and American consumers anxious to rush into the marketplace and spend, growth in the first half of the year was solid. | | - Stifel Chief Economist Lindsey Piegza on the economy's strong Q2 GDP numbers, which came in at a high 6.2 percent, but still fell below expectations as total GDP finally rose above pre-pandemic levels. | | |
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