 | | |  Good morning. On Friday, many noticed that the Federal Reserve would be having an "Expedited, Closed" Board Meeting today at 11:30 AM Eastern time. Given that a number of Fed members have spoken increasingly about the need to hike interest rates, markets remained on edge Friday that a rate hike could now come as quickly as, well, today.
If that happens, it could be seen by traders as a sign that inflation is out of control, the Fed is way behind the curve, and that things are going to get worse before they get better. Rather than soothe the markets, it could allow us to quickly retest January's market lows—or even plunge further.
However, later in the day, the Fed released its latest calendar, which suggested that an emergency rate hike was off the table.
But, with news on Friday afternoon that Russia may invade Ukraine this week, anything could be on the table. Until we get a clearer picture on these fronts, traders should continue to remain cautious, and look to take quick profits on trades, as well as look to hedge long positions with tools like covered calls.
Now here's the rest of the news: | | | | | |
| | |  | DOW 34,738.06 | -1.43% | | | | S&P 4,418.63 | -1.90% | | | | NASDAQ 13,791.15 | -2.78% | | | | | *As of market close | | | • | Markets sank on Friday, as uncertainty arose between Russia and the Ukraine. | | | • | Oil soared 4.3 percent going for $93.77 per barrel. | | | • | Gold rose 1.5 percent, last going for $1,865 per ounce. | | | • | Cryptocurrencies dropped, with Bitcoin at $42,539 at the stock market close. | | | | | | | |
| | | The Market's Still Rewarding Companies Growing Right Now | | | | The current economic data shows inflation is running hot, supply chains are strained, and consumers are increasingly uncertain. A company that can thrive and grow now is one that's going to be rewarded by investors in today's market.
The best place to find such companies are one that offer a powerful brand, which tends to hold more value, or which offer a service, as services are removed from supply chain constraints and tend to be highly profitable.
» FULL STORY | | | | |
| | Insider Trading Report: Huntington Bancshares (HBAN) | | | | Kenneth Phelan, a director at Huntington Bancshares (HBAN), recently added 7,560 shares to his holdings. The buy increased his stake by nearly 14 percent, and came to a total price just under $120,000.
The same director also picked up 20,000 shares back in November, at a price similar to where shares trade today. Otherwise, company insiders have more likely been sellers of shares over the past three years.
» FULL STORY | | | | |
| | Unusual Options Activity: The AES Corporation (AES) | | | | Shares of utility firm The AES Corporation (AES) have been trending down over the past year. one trader sees a potential rebound in the coming months.
That's based on the May $24 calls. With 94 days until expiration, 18,334 contracts traded hands, a 176-fold jump in volume compared to the prior open interest of 104. The buyer of the calls paid $0.93 to make the trade.
» FULL STORY | | | | |
| | • | Markets Price in Big Fed Move in March
Financial markets are now betting that the Federal Reserve will raise interest rates a half point following its March meeting. If so, that would be the first time since 2000 that the central bank has made a move more than a quarter point at a time. Such a move could signal to markets that the central bank is concerned about stemming inflation, which continues to run hot. | | | | • | Consumer Sentiment Falls to 10 Year Lows
Consumer sentiment fell to 61.7 in February, based on the initial data from the University of Michigan. That's the lowest level in a decade, and an 8.2 percent decline since January. Sentiment is measured on a scale of 1-100, where 50 is a neutral reading, so overall consumers are still upbeat on the economy, albeit at a lower rate than in previous months. | | | | • | Rents Jump 30 Percent in Some Markets
Average monthly rents across the country are up 14 percent compared to a year ago. In some cities with limited housing and high demand, such as New York City and Austin, Texas, rents have risen as high as 30 percent. The trend will likely continue to rise as leases come up for renewal. | | | | • | MoviePass Looks to Reboot
MoviePass, the subscription-based movie ticket company that went bankrupt back in 2019, is looking to relaunch again this year. A sale has been approved by the bankruptcy court overseeing the company, and plans are underway to launch a new MoviePass 2.0 this summer. | | | | • | Bon Jovi Lists Manhattan Condo For $21.5 Million
Rockstar Jon Bon Jovi is listing a condo he bought for just under $19 million in 2017 for $21.5 million. The condo is in Greenwich Village, and has 4 bedrooms, 4,000 square feet, and views of lower Manhattan and the Hudson River. | | |
| | | | TOP | | | NWL | 11.066% | | | | BKR | 6.195% | | | | OXY | 5.654% | | | | NOV | 5.505% | | | | NEM | 5.501% | | | | BOTTOM | | | UAA | 12.494% | | | | UA | 11.368% | | | | AMD | 10.01% | | | | XLNX | 9.989% | | | | EPAM | 9.413% | | | | |
| | |  | | I expect that we'll see a return of the volatility that was prevalent for most of the month of January in the wake of this report… Investors may want to buckle up as it could be a rough ride for risk assets until inflationary data starts to abate, and I expect that it will, as we move through the year. | | - Brian Price, head of investment management at Commonwealth Financial Network, on why markets will likely continue to remain volatile for the foreseeable future as investors continue to price in the latest economic data. | |
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