Good morning. Inflation may be the headline story, but it's just one factor that could impact...
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. Inflation may be the headline story, but it's just one factor that could impact corporate profitability this earnings season. Many companies are able to pass on rising costs to customers from run-of-the-mill inflation. But higher energy prices, which have been running hotter than official inflation measures, represent a much larger bill for many companies. We're already starting to see warnings on that front, including form airline companies, as oil prices hit a seven-year high.
But there's one more threat out there. Last week, 136 nations signed an agreement on a minimum corporate tax rate of at least 15 percent. The goal? To keep multinational companies from having a subsidiary in a low-tax jurisdiction to avoid the higher tax rates of other countries.
While some companies may have to shift operations, the end result will be in higher total taxes paid overall, which may induce some companies to start looking for ways to lose money for tax purposes, a measure that may weigh on share prices should that play out. Add it all up, and corporations are facing a number of challenges likely to keep profitability down in the next few months.
Now here's the rest of the news: | | | | | |
| | |  | DOW 34,377.81 | -0.00% | | |  | S&P 4,363.80 | +0.30% | | | | NASDAQ 14,571.63 | +0.73% | | | | | *As of market close | | | • | Stocks closed higher on Wednesday, shaking off some early morning volatility. | | | • | Oil declined 0.2 percent, closing at $80.52 per barrel. | | | • | Gold rose 1.9 percent, last going for $1,793 per ounce. | | | • | Cryptocurrencies rallied, with Bitcoin at $57,276 at the stock market close. | | | | | | | |
| | | Time to Buy the Dip On this Leading Global Brand | | | | Investors are willing to pay a premium for a brand. The name brand of anything, from shoes to soda will carry a premium compared to a lesser-known or even a store brand. Companies with strong brands tend to have premiums attached to their share price too, which can make it hard to buy shares at a reasonable price.
That's why traders should use any market volatility to focus on buying strong branded companies, as they end up being the proverbial baby thrown out with the bathwater.
» FULL STORY | | | | |
| | Insider Trading Report: Landmark Infrastructure Partners (LMRK) | | | | Landmark Dividend, a major holder of Landmark Infrastructure Partners (LMRK), recently added 852,748 shares to their holdings. The buy increased the fund's stake in the firm by over 24 percent, and came to a total purchase price of just over $14 million.
This follows up on a 158,261 share buy from the fund last month as well. These two buys mark the only insider activity since 2018, when the fund and another insider last bought shares as well.
» FULL STORY | | | | |
| | Unusual Options Activity: Dun & Bradstreet (DNB) | | | | Shares of financial analytics company Dun & Bradstreet (DNB) have been trending down steadily over the past year, before a brief spike higher in the past few weeks. One trader sees the longer-term downtrend continuing.
That's based on the January $17.50 puts. With 99 days until expiration, over 4,220 contracts traded hands, a 35-fold rise in volume from the prior open interest of 120. The buyer of the puts paid $0.98 to make the trade.
» FULL STORY | | | | |
| | • | Inflation Hits 5.4 Percent Annualized Basis
Inflation rates ticked up 0.4 percent in September, based on the latest CPI data. That's a 5.4 percent annualized basis, and a slight increase over the August numbers. This points to inflation being a persistent issue, rather than a transitory one, and a factor that may result in the Federal Reserve start tapering its asset purchases in the near future. | | | | • | Social Security Benefits Jump 5.9 Percent
The Social Security Administration announced that it would increase benefits by 5.9 percent in 2022. The rise is the fastest increase in 40 years, and is about in line with the recent increase in inflation. The administration estimates that nearly half of Americans over the age of 65 relies on such benefits for more than half of their income needs. | | | | • | Retailers Expect Strong Halloween
The National Retail Federation expects a blowout Halloween this year, as many passed on the chance to trick or treat in 2020. Spending on the holiday is expected to hit a record $10.14 billion. Candy sales in August already topped $74 million, up 42 percent from a year ago, as retailers brought candy to store shelves earlier than in prior years. | | | | • | Ray Dalio Sees Workplaces Adjusting to New Normal
Billionaire investor Ray Dalio doesn't see workforces returning to a pre-Covid normal. Instead, hybrid and remote work, as well as customized workplaces, will be the trend for the future. That includes new technology that will also make some jobs obsolete in addition to how employees work. | | | | • | Blue Origin Launches Second Successful Manned Flight with William Shatner
Blue Origin launched its second successful manned flight out of West Texas on Wednesday. This is the company's 18th launch overall. The four-passenger flight included Star Trek actor William Shatner, who also set a record for oldest human to reach space at the age of 90. | | |
| | | | TOP | | | ZM | 4.352% | | | | MELI | 4.22% | | | | LULU | 4.096% | | | | BLK | 4.033% | | | | FCX | 3.771% | | | | BOTTOM | | | DAL | 5.857% | | | | ALGN | 5.268% | | | | UAL | 3.624% | | | | AXP | 3.299% | | | | DFS | 3.187% | | | | |
| | |  | | It looks like we could get more broad-based inflation. There is supply shock there. You start getting spillover of energy prices and other things. | | - Diane Swonk, chief economist at Grant Thornton on why inflation expectations may continue to run higher than expected for the next few months, which in turn could keep the stock market from heading materially higher. | |
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