 | | |  Good morning. Any econ 101 student can tell you that there's a lag effect between something like, say, the creation of trillions of dollars in spending, and inflation rates reflecting that. We're seeing that trend play out today, with the highest inflation levels in decades.
The good news? Some of that new money first went to financial markets, rather than in goods and services. That helped keep many things affordable, especially during the initial lockdown phase of the pandemic. But today, we're seeing the impacts of those past lockdowns (and current ones). And we're seeing that handing out money directly to everyone will juice inflation more than letting the Fed lower interest rates at zero, given that we didn't have this inflation the first time they did so after the housing market crash.
Ironically, given the lag effects, inflation is likely to peak in the coming months. But if markets fall further, a push for a new round of stimulus could kick it all off again. Traders should continue to remain cautious, look at downside opportunities, and not shun cash, as market volatility remains high.
Now here's the rest of the news: | | | | | |
| | |  | DOW 32,245.57 | -1.99% | | | | | S&P 3,991.36 | -3.20% | | | | | NASDAQ 11,623.25 | -4.29% | | | | | *As of market close | | | • | Stocks sank on Monday, with indices sinking to 2022 lows. | | | • | Oil slid 6.8 percent, closing at $102.30 per barrel. | | | • | Gold dropped 1.6 percent, ending at $1,853 per ounce. | | | • | Cryptocurrencies were crushed, with Bitcoin at $31,062 at the stock market close. | | | | | | | |
| | | Follow the World's Safest Long-Term Investment Strategy Now | | | | Investors looking to go long on stocks right now could be in for a wild ride. But over time, a few strategies can ensure that buying during this period of market fear leads to great results.
While the market selloff of the past few months may lead to investors swearing off of stocks, chances are it won't be long before investors start piling into the next fad.
» FULL STORY | | | | |
| | Insider Trading Report: PayPal Holdings (PYPL) | | | | Enrique Lores, a director at PayPal Holdings (PYPL), recently picked up 1,100 shares. The buy increased his stake by over 26 percent, and came to a total cost of just under $97,000.
This follows up on a number of insider buys since late 2021. Company insiders have been exclusively sellers in the two years before that timeframe. The more recent insider buys have included directors and company executives as shares have substantially dropped from their highs.
» FULL STORY | | | | |
| | Unusual Options Activity: Wells Fargo Company (WFC) | | | | Shares of megabank Wells Fargo Company (WFC) have lost over one quarter of their value since February. One trader sees room for a continued downtrend in the coming weeks.
That's based on the June 10th $44 puts. With 31 days until expiration, 11,374 contracts traded compared to a prior open interest of 143, for an 80-fold increase in volume on the trade. The buyer of the puts paid $1.87 to bet on a further drop in shares.
» FULL STORY | | | | |
| | • | Gas Prices Near Record Highs
Based on the latest data from AAA, the national average for regular gasoline hit $4.328 per gallon. That's close to the all-time high of $4.331, set back on March 11, shortly after oil prices spiked following Russia's invasion of Ukraine. Overall, gas prices are up about 23 percent since before the start of the Russian invasion. | | | | • | 10-Year Treasury Yields Hit Highest Level Since November 2018
Treasury yields continue to rise, with the 10-year rate now hitting 3.17 percent. That's the highest level since November 2018. The move higher comes as economic growth starts to slow and as inflation levels remain high, leading investors to seek higher interest rates before investing in bonds. | | | | • | China Trade Drops on Lockdowns
Global trade out of China has sunk as the country has shut down factories to combat an outbreak of Covid 19. The country now reports its weakest export growth in two years. A lower quantity of goods coming out of China will likely keep prices high and result in delays for finished goods for months to come. | | | | • | Fed Officials Deny Criticism on Being Behind the Curve
Markets have been tanking since last week's Fed meeting, as many traders view the central bank as far behind the curve as inflation soars and economic growth slows. Two officials are disagreeing with that criticism, noting that the central bank needs to curb inflation and do so without creating a "hard landing." | | | | • | Instagram to Test NFT With Creators
Social media site Instagram, owned by Meta Platforms (FB) is rolling out a test for NFT creation with select creators this week. Creators can share NFTs that they've made or bought on the platform, which can be shared to users. If the test is successful, more functionality will be rolled out in the months ahead. | | |
| | | | TOP | | | NWL | 8.964% | | | | VTRS | 5.578% | | | | NWS | 4.583% | | | | SWK | 4.429% | | | | CPB | 3.916% | | | | BOTTOM | | | MELI | 15.774% | | | | APA | 14.691% | | | | MRO | 14.281% | | | | MOS | 13.037% | | | | OXY | 11.73% | | | | |
| | |  | | The widely anticipated relief rally seen in equities and bonds post the 'less hawkish than feared' Fed on Wednesday was short lived. Although aggressive 75bp hikes going forward may be off the table, the implied policy tightening cycle ahead is still very hawkish, in our view. Unless surging inflation quickly reverses its course (watch US CPI print Wednesday), central banks may have no other choice than slowing growth to slow inflation and stay credible. | | - Emmanuel Cau, strategist at Barclays, on why investors shouldn't get too bullish, as inflation remains a concern, and lowering inflation means raising interest rates. | |
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