Wednesday, May 4, 2022

⏫Why this Oversold Sector Could Move Higher⏫

Good morning. The market selloff has been brutal for tech stocks, but that's the case in any sell...
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. The market selloff has been brutal for tech stocks, but that's the case in any selloff. Right now, one of the more interesting sectors is retail. The space as a whole now trades at a PE ratio of about 15, compared to 27 just a year ago. It's the cheapest level for this sector since 2014.

There are good arguments for or against an investment now. Rising retail theft, particularly in places where low-level theft isn't being prosecuted, is heavily cutting into retailer's margins. And many consumers are cutting back on spending as prices rise.

That said, once the latest inflation fears start to fade, likely later in the year should year-over-year inflation levels start to decline, this sector could be poised for a takeoff toward its historic valuation of the past few years.

Now here's the rest of the news:

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MARKETS
DOW 33,128.79 +0.20%
S&P 4,175.48 +0.48%
NASDAQ 12,563.76 +0.22%
*As of market close
Stocks closed higher on Tuesday, as traders positioned themselves for today's Fed meeting.
Oil dropped 2.2 percent, closing at $102.90 per barrel.
Gold rose 0.2 percent, ending at $1,867 per ounce.
Cryptocurrencies generally dropped, with Bitcoin at $37,692 at the stock market close.

Today's TOP TIPS
For Complex Companies, Break It Down into Parts to Find Potential Bargains Now
Many companies offer just one product or service. Some of today's large companies, however, offer many services and products (or even both). That's especially true in the tech space, where rapid changes result in continued ongoing sales and support.

Some of these companies have a number of businesses that could be broken out into separate parts. And right now, this "sum of the parts" analysis is starting to show that it may be time to start dipping a toe into some tech giants.

» FULL STORY

Insider Trading Report: Western Alliance Bancorp (WAL)
Kelly Ardrey, Chief Accounting Officer at Western Alliance Bancorp (WAL), recently picked up 3,000 shares. The buy increased her stake by 97 percent, and came to a total purchase price just over $236,000.

This is the first buy at the company since early March, when the CFO picked up 2,000 shares, and the Executive Chairman bought 25,000 shares at a cost of just over $1.9 million.

» FULL STORY

Unusual Options Activity: Comcast Corporation (CMCSA)
Shares of cable provider Comcast Corporation (CMCSA) hit a 52-week low on Monday before turning higher. But one trader is betting that the stock will continue to decline in the months ahead.

That's based on the October $30 puts. With 170 days left, 16,266 contracts traded compared to a prior open interest of 894, for an 18-fold rise in volume on the trade. The buyer of the puts paid $0.93 to enter the trade.

» FULL STORY

IN OTHER NEWS
Shanghai Eases Lockdown Restrictions

The Chinese port city of Shanghai is easing up on recent Covid restrictions. At present, over 2,000 companies in the area are now moving back into production, however, workers are required to live on site and undergo weekly testing. The move comes as global cargo shipping has backed up outside the city and supply chains remain snarled.
4.5 Million Americans Quit their Jobs in March

The US labor market set another record for job quits in March, as 4.5 million Americans left their jobs. The overall quit rate hit 3 percent, a level last seen in December. The number of workers quitting jobs is on the rise as companies are requiring a return to in-person work in offices.
Paul Tudor Jones Warns on Financial Conditions

Billionaire investor Paul Tudor Jones has stated that he, "can't think of a worse environment than where we are right now for financial assets." That's due to the Fed raising interest rates as the economy has shown signs of contracting – a combination that bodes poorly for both stocks and bonds right now
BP Sees $25.5 Billion Drop from Exiting the Russian Market

Oil major BP (BP) reported a loss in the first quarter, even in spite of rising energy prices. The company's extensive Russian operations have led the company to report a $25.5 billion loss. BP's partial stake in Russian oil producer Rosneft is one of the biggest reasons for the hit, accounting for $13.5 billion in value.
Sila Group Buys Factory for Battery Production in the US

Battery technology company Sila is buying a 600,000 square foot facility in Moses Lake, Washington. The company expects to have partial production at the site by 2024, and be fully underway by 2025. The company's batteries are expected to be in hundreds of thousands of electric vehicles by 2026.

S&P 500 MOVERS
TOP
WDC 14.633%
MPWR 10.895%
CTLT 10.486%
DVN 9.392%
CTRA 9.25%
BOTTOM
ROK 14.664%
EXPE 13.947%
FMC 6.253%
EL 5.867%
LYV 4.97%

Quote of the Day
With financial conditionings tightening as they are, we think the Fed is going to be slightly more dovish than the market is expecting.
- Eric Johnston, head of equity derivatives at Cantor Fitzgerald, noting that the market has gotten oversold and now isn't pricing in a more accommodating Federal Reserve policy in light of economic data showing a slowdown.

Sponsored Content
[Video] This 60-Second Technique Produces Instant Cash EVERY Time

This Infinite Income Loop Hands Me Instant Cash Every Month. I'm Keith Kaplan and since 2004, I've been building software with a single goal in mind: make money. Now I've applied my engineering skills to a specific corner of the stock market … where you could potentially generate instant cash every time you trade.

This is my proudest creation. A "done-for-you system" that can let you pull instant cash out of three stocks every month. I've even filmed a short video for folks who are interested in learning how this trade works.

Click Here to watch My Infinite Income Loop


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