Good morning. Yesterday's rout in the stock market is being blamed on rising Treasury yields...
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.
| | | | DOW 34,299.53 | -1.63% | | | | S&P 4,352.61 | -2.04% | | | | NASDAQ 14,546.68 | -2.83% | | | | *As of market close | | • | Stocks were slammed on Tuesday, with all three indices dropping heavily. | | • | Oil dropped 1 percent, closing at $74.73 per barrel, after hitting $80 earlier in the day. | | • | Gold declined 1.1, last going for $1,733 per ounce. | | • | Cryptocurrencies dropped, with Bitcoin at $41,707 at the stock market close. | | | | | | | | | | Buy the Winners of the Chip Shortage Story | | | | Supply chain disruptions suggest that shortages for many goods will continue potentially indefinitely. However, a number of tech executives see a light at the end of the tunnel, with the shortage of semiconductor chips abating next year.
The most recent to comment has been Lisa Su, the CEO of Advanced Micro Devices (AMD). She has noted that demand has been at record levels since the pandemic. » FULL STORY | | | | | | Insider Trading Report: Agree Realty Corporation (ADC) | | | | Joey Agree, President and CEO of Agree Realty Corporation (ADC), recently picked up 3,670 more shares. The buy increased his stake by 0.8 percent, and came to a total purchase price of just under $248,000.
This follows up on two director buys of several hundred shares earlier in the month. Over the past three years, insider buys have greatly exceeded insider sales. Overall, company insiders own 2 percent of shares. » FULL STORY | | | | | | Unusual Options Activity: Tempur Sealy International (TPX) | | | | Shares of mattress firm Tempur Sealy International (TPX) have more than doubled in the past year. One trader sees the potential for shares to move far higher in the coming months.
That's based on the January $60 calls. With 114 days until expiration, over 10,050 contracts traded against an open interest of 2020, a 50-fold rise in volume. The buyer of the calls paid $0.93 to make the trade.
» FULL STORY | | | | | | • | Yellen Warns Government Will Run Out of Money by October 18
Treasury Secretary Janet Yellen has warned that the US government will run out of money by October 18. To avoid a default, the debt ceiling must be raised by then. This is the latest estimate as Congress looks to meet this week on a number of bills, including some with proposals for raising the debt ceiling. | | | | • | Oil Tops $80 Per Barrel
Oil prices briefly topped $80 per barrel on Tuesday, marking a new multi-year high for the commodity. Prices have now risen for 6 days in a row, as investors see supply constraints and rising demand impacting the price. A view is also emerging that a transformation in the energy sector away from oil may take longer than expected. | | | | • | CEOs Wary on Tax Hike Proposals
To close the budget gap amid a proposed $3.5 trillion spending bill, Congressional Democrats have proposed raising the corporate tax rate to 26.5 percent. Many company CEOs have warned that such higher rates could impact job growth, corporate profitability, and may end up delaying the economic recovery. | | | | • | Bank Mergers Hit Fastest Pace Since Financial Crisis
More than $54 billion in bank deals have been announced so far in 2021, nearly triple the $17 billion over the same timeframe in 2020. That's pushed the bank industry to its highest level of merger activity since 2008, a sharp contrast from last year when expansion and merger plans at smaller banks were put on hold. | | | | • | Capital Float Raises $50 Million
Capital Float, a buy now, pay later (BNPL) platform, has raised $50 million in new investment. The firm has now raised a total of over $600 million, and is one of the most popular BNPL platforms in India. The company has had backing from Amazon (AMZN), among others to provide payment offerings. | | | | | | TOP | | SLB | 2.418% | | | COP | 1.949% | | | ATVI | 1.678% | | | HBI | 1.466% | | | TSN | 1.418% | | | BOTTOM | | AMAT | 6.656% | | | APA | 6.277% | | | MSCI | 6.165% | | | AMD | 5.922% | | | ETSY | 5.612% | | | | | | | | | Inflation is elevated and will likely remain so in coming months before moderating. As the economy continues to reopen and spending rebounds, we are seeing upward pressure on prices, particularly due to supply bottlenecks in some sectors. These effects have been larger and longer lasting than anticipated, but they will abate, and as they do, inflation is expected to drop back toward our longer-run 2 percent goal. | | - Federal Reserve Chairman Jerome Powell on the fact that, yes, inflation is rising higher than expected, and may continue to do so for some time, while still reiterating that those rates will abate. | | |
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