| | Good morning. Sanctions, rising inflation, interest rate fears… these are all big-picture issues that operate in both financial markets and the real world. But the biggest issue for financial markets right now might just be something else: liquidity.
There's been a bit of a strain on the market, which in turn could lead to wider swings in prices, starting with usually highly liquid markets with lots of players like the Treasury market. When this market starts to get the volatility of the stock market, it's usually a sign of big trouble.
For now, traders have been able to meet margin calls with no strain or delay, and overall investors aren't concerned over big issues, but we could still be in for a lot of volatility in the days ahead, and this problem could worsen before it gets better. If a hedge fund announces a bankruptcy, or a bank starts reporting massive issues with liquidity, it may be time to prepare for another leg lower for stocks. Now here's the rest of the news: | | | | | | | | | | DOW 32,817.38 | -2.37% | | | | S&P 4,201.09 | -2.95% | | | | NASDAQ 12,830.96 | -3.62% | | | | *As of market close | | • | Stocks continued lower on Monday, closing at lows of the day. | | • | Oil rose 3.5 percent, closing at $119.75 per barrel. | | • | Gold rose 1.7 percent, going for $2,001 per ounce. | | • | Cryptocurrencies ended lower, with Bitcoin at $37,571 at the market close. | | | | | | | | | | This Infrastructure Trend Points to the Best Profits from Ongoing Digital Transformation | | | | Current headlines are bearish, from rising interest rates to a potential global conflict following Russia's invasion of Ukraine. However, dour headlines often pop up, but longer-term trends underway point to a better, not worse, future. That's especially true with tech. The past decade has seen an explosion in digital transformation, and that trend looks likely to continue, even with the latest headlines today. » FULL STORY | | | | | | Insider Trading Report: SoFi Technologies (SOFI) | | | | Anthony Noto, CEO at SoFi Technologies (SOFI), recently bought 15,000 additional shares. The buy increased his holdings by 0.5 percent, and came to a total price of just over $149,000. This marks the first insider buy since December, when the company's Chief Risk Officer picked up 1,000 shares. Insiders have largely been sellers since the company went public last year, although major fundholders from before the IPO are the culprit for the overwhelming majority of those sales. » FULL STORY | | | | | | Unusual Options Activity: NCR Corporation (NCR) | | | | Shares of information technology firm NCR Corporation (NCR) have been trading in a range over the past year. One trader sees shares rallying from this lower part of its range to the higher part. That's based on the July $40 calls. With 128 days until expiration, 3,411 contracts traded compared to a prior open interest of 142, for a 24-fold jump in volume. The buyer of the calls paid $3.15 to get into the trade.
» FULL STORY | | | | | | • | Gas Tops $4 Per Gallon Nationwide
For the first time since 2008, the price of a gallon of regular gas hit $4.00 on Sunday. The record average for the US as a whole is $4.11, which may be beaten in the coming days. Russia's invasion of Ukraine has led to a number of sanctions, which could put the large oil-producing country largely out of the global oil market in short order. | | | | • | Gold Hits $2,000 Per Ounce
As investors look for a safe-haven investment right now, gold prices have moved higher in the past few weeks, attracting plenty of interest. The metal has once again topped $2,000 per ounce, its highest level in over one year. Prices are now also within just a few percentage points of their all-time high, which triggered in the summer of 2020. | | | | • | EPA Sets Commercial Truck Emission Rules
The Environmental Protection Agency is proposing a series of rules set to take effect in 2027 impacting commercial trucks and buses. The rules would tighten nitrogen-oxide emissions with the goal of combatting smog in major cities and the respiratory problems that can come with them. The trucks would include everything from large truckers to smaller-sized delivery trucks, and even trash trucks and cement mixers. | | | | • | More Companies Leave Russia
More companies are leaving Russian markets amid that country's invasion of Ukraine. Over the past few days, Netflix (NFLX), PayPal (PYPL), MasterCard (MA) and Visa (V) have withdrawn from the country, further isolating it from the rest of the world. | | | | • | Bed Bath & Beyond Surges on Stake by GameStop Chairman
Ryan Cohen, Chairman of GameStop (GME), has bought nearly 10 percent of another retailer, Bed Bath & Beyond (BBBY) through his investment company. He has written to the board expressing a number of ways for the company to turn itself around and potentially unlock shareholder value. | | | | | | TOP | | SLB | 8.526% | | | HAL | 6.622% | | | BKR | 4.877% | | | NEE | 4.763% | | | NEM | 4.523% | | | BOTTOM | | PVH | 16.22% | | | UAL | 15.268% | | | FTNT | 13.063% | | | DAL | 13.036% | | | LYV | 12.577% | | | | | | | | | I think the market perhaps is in a bottoming process, but it's very hard to map or model these types of geopolitical issues. History is full of teachings that you buy during periods of conflict ... but every war and situation is different. | | - Jeff Mortimer, director of investment strategy at BNY Mellon Wealth Management, on why the stock market is likely closing in on a bottom given recent geopolitical events. | | |
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