Thursday, September 9, 2021

🤔 Is Another “Lehman Moment” Unfolding? 🤔

Good morning. The excess lending that led to the housing crash was inevitable. But it took a few...
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 excess lending that led to the housing crash was inevitable. But it took a few specific events for many investors to see what was unfolding and belatedly prepare. One such moment was the collapse of Lehman Brothers, a venerable Wall Street firm that went belly up overnight on mortgage-related losses.

Over in China, Evergrande, the country's second-largest real estate developer, is in a collapse similar to the "Lehman moment" that shook markets in September 2008. The company's shares have dropped under their 2009 IPO price in recent days. Company bonds are being priced for pennies on the dollar as fears of default rise. Time will tell how this will play out—and how much a major blowup in China can affect world markets. Events like this certainly point to heightened volatility in the weeks ahead, in line with our view that these are the months where the market is most primed for a pullback, but not necessarily a big collapse.

Now here's the rest of the news:

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MARKETS
DOW 35,031.07 -0.20%
S&P 4,514.07 -0.13%
NASDAQ 15,286.64 -0.57%
*As of market close
Stocks traded down on Wednesday, but closed well off of intraday lows.
Oil rallied 1.5 percent, closing at $69.35 per barrel.
Gold rallied 0.4 percent, last going for $1,792 per ounce.
Cryptocurrencies drifted lower, with Bitcoin at $46,149 at the stock market close.

Today's TOP TIPS
This Market Match Indicates Further Upside Ahead

Typically, a growing company will hit certain milestones in its career. The most important for getting onto the radar for investors is being included in a major index. Over time, companies that hit earnings and revenue goals may find they join more and more prominent indices.

The S&P 500 has recently started rebalancing, taking a few companies out, but adding some new players as well, who are seeing their shares soar now.

» FULL STORY


Insider Trading Report: Financial Institutions Inc (FISI)
Martin Birmingham, President and CEO at Financial Institutions Inc (FISI) recently picked up 1,000 additional shares. The buy increased his holdings by just under 1 percent, and came to a total purchase price of just under $31,000.

That follows on a buy for 637 shares made two days before by the company CFO. That came to a total purchase price of just under $20,000. Company insiders have been steady buyers in small amounts over the past three years, with no insider sales.

» FULL STORY

Unusual Options Activity: Equitrans Midstream Corporation (ETRN)
Shares of natural gas gathering, transmission, and storage firm Equitrans Midstream Corporation (ETRN) have traded flat over the past year. One trader sees a rally in the months ahead.

That's based on the January $12.50 calls. With 134 days until expiration, over 15,420 contracts traded, a 39-fold rise in volume from the prior open interest of 391 contracts. The buyer of the calls paid $0.18 to make the trade.

» FULL STORY

IN OTHER NEWS
US Could Generate 44 Percent of Electricity from Solar by 2050

The US Energy Department estimates that as much as 44 percent of electricity generation in the US could come from solar use by 2050. That's a sharp increase from the current 3 percent generated by solar. The costs would be nearly $562 billion, but cleaner air and the resulting better health could lead to $1.7 trillion in savings.
Elizabeth Holmes Trial Set for Opening Statements

Opening arguments have begun in the trial for Elizabeth Holmes, former CEO of Theranos. The blood testing company's products never worked as well as intended, and investors were misled as to the company's state as a result. Holmes faces 20 years in prison on a number of charges related to the fraudulent disclosures.
PayPal Offers $2.7 Billion for Japan's Paidy

PayPal (PYPL) is offering $2.7 billion to acquire Paidy, a Japanese payment firm. The company specializes in "BNPL" or buy now, pay later financing terms for buyers. The move gives PayPal a bigger expansion into the Japanese market, still the third-largest economy and e-commerce market in the world.
Microsoft to Acquire Video Editing Software Firm Clipchamp

Tech giant Microsoft (MSFT) is acquiring Clipchamp, a video editing and software startup. Terms of the deal weren't mentioned. Microsoft sees video creation as a logical extension of its existing software programs in the Microsoft 365 line, especially as many users are creating video projects.
Coinbase Under SEC Investigation

Cryptocurrency brokerage platform Coinbase (COIN) has revealed that it has received a possible enforcement action notice from the SEC. Coinbase is in the process of launching Coinbase Lend, a service that would allow users to lend out their cryptocurrencies and earn interest.

S&P 500 MOVERS
TOP
PRGO 8.99%
GPN 7.194%
GIS 4.561%
RE 4.461%
KHC 3.926%
BOTTOM
PHM 6.051%
FCX 5.473%
UHS 4.28%
STX 4.236%
SLB 4.204%

Quote of the Day
Stocks have posted much stronger than average gains, with much shallower than average pullbacks. It would be perfectly normal to see at least one gut check before year end.
- Keith Lerner, chief market strategist at Truist, on why the stock market may have a normal correction in the coming weeks before closing out the year strong.

Sponsored Content
THIS is the options advice to follow…
After 20+ years of trading options, I've found it isn't worth buying a certain type of options. If you've lost money with options before, this might be something you're familiar with. If you are new to options and have never bought a contract, this is advice to follow. I recommend buying a different kind of option.

See what I mean here...


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