Good morning. The rise of the pandemic, combined with historically low interest rates, allowed...
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 34,220.36 | -0.26% | | | | S&P 4,397.45 | -0.34% | | | | NASDAQ 13,371.57 | -0.30% | | | | *As of market close | | • | Stocks dropped on Tuesday, giving up substantial early-morning gains. | | • | Oil rallied 6.8 percent, closing at $100.68 per barrel. | | • | Gold rose 1.2 percent, going for $1,967 per ounce. | | • | Cryptocurrencies declined, with Bitcoin at $39,572 at the market close. | | | | | | | | | | Downgrades For Top Companies Offer a Counter-Intuitive Buying Opportunity | | | | Wall Street analysts tend to be quick to upgrade stocks that are rallying, and quick to downgrade a stock after it's fallen. Traders who take the opposite tack tend to cash out during a rally, and tend to end up buying in when shares are at a bargain price.
With many companies already down heavily, it's no surprise that downgrades continue to trickle in, even though the worst may have passed for the stock market for some time. » FULL STORY | | | | | | Insider Trading Report: Confluent (CFLT) | | | | Brad Gerstner, a major owner at Confluent (CFLT), recently added 439,200 shares. The buy increased his holdings by 8.3 percent, and came to a total price of just over $17.1 million.
That follows up on two buys he also made in the last month, one for 175,000 shares just over $6.7 million, and one for 201,700 shares for just over $7 million. Going back further, company insiders have been more prone to sell shares. » FULL STORY | | | | | | Unusual Options Activity: General Motors (GM) | | | | Shares of General Motors (GM) are near a 52-week low thanks to high inflation, supply chain shortages impacting auto production, and the view of a slowing economy. One trader is betting on a rebound in the coming weeks.
That's based on the June $42 calls. With 65 days until expiration, 24,263 contracts traded hands, a 144-fold surge in volume compared to the prior open interest of 169. The buyer of the calls paid $2.32 to get into the trade.
» FULL STORY | | | | | | • | Inflation Surges to 8.5 Percent Annualized Rate
The headline consumer price index rose at an 8.5 percent annualized rate through March. That's the fastest annual gain since December 1981. It also came in 0.1 percent higher than analyst expectations. The numbers indicate that real worker earnings fell by 0.8 percent in the past month alone. The headline CPI data does not include food or fuel, either. | | | | • | EPA to Ease Rules on Ethanol Use
In an effort to curb high gas prices, the EPA has announced that it will allow higher-ethanol blends to be available this summer. Current rules ban the use of a 15 percent ethanol blend to cut pollution during the high driving season. Ethanol, a blend made from corn, is also seeing prices increase as agricultural output costs have soared. | | | | • | E-Commerce Sales Continue to Rise
E-commerce sales in the US rose 7 percent compared to a year ago, based on data from Adobe (ADBE). Total online sales reached $83.1 billion for the month, and if the trend continues, online sales could top $1 trillion for the first time this year. Data also indicates that rising prices for goods sold online drove part of the gains. | | | | • | BlackRock, Fidelity, Invest $400 Million in Circle
Stablecoin issuer Circle has announced a $400 million investment on the platform. Major investors include BlackRock (BLK) and Fidelity (FNF). Circle is a fintech firm that issues USD coins (USDC), a stablecoin pegged to the US dollar on a 1:1 basis, with every USDC backed by $1. It is the second largest stablecoin behind Tether (USDT). | | | | • | Esty Sellers Go on Strike Over Marketplace Transaction Fees
Thousands of sellers on Etsy (ETSY) started a one-week strike on Monday. The move comes as the online marketplace for handcrafted goods has started hiking fees for users of the platform. Etsy is raising fees from 5 percent to 6.5 percent, which can have a significant impact on heavy users dependent on the platform. | | | | | | TOP | | MRO | 4.441% | | | DVN | 3.948% | | | TCOM | 3.886% | | | DRI | 3.303% | | | FANG | 3.19% | | | BOTTOM | | KMK | 8.108% | | | CTLT | 6.343% | | | TWTR | 5.137% | | | BIO | 4.791% | | | A | 4.442% | | | | | | | | | I think by the summer we'll probably see the CPI inflation rate peaking and then the consumption deflator is going to peak somewhere between 6 and 7% and then come down to maybe 3 to 4% by the second half of the year going into next year. | | - Ed Yardeni, president of Yardeni Research, on why the current inflation fears may soon close in on a peak before declining in the latter half of the year. | | |
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