Good morning. Fears of a recession continue to rise. The real issue impacting markets is how deep...
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 30,967.45 | -0.42% | | |  | S&P 3,831.42 | +0.16% | | | | | NASDAQ 11,322.24 | +1.75% | | | | | *As of market close | | | • | Stocks traded mixed on Tuesday, shaking off a steep morning loss. | | | • | Oil slid 8.1 percent, dropping under $100 per barrel to $99.67. | | | • | Gold slid 2 percent, last going for $1,766 per ounce. | | | • | Cryptocurrencies moved slightly higher, with Bitcoin last trading at $20,365. | | | | | | | |
| | | These Market Underperformers Stand to Outperform on the Next Rally | | | | Financial stocks tend to be sensitive and even leveraged to changes in the economy. That's been the case with a number of financial stocks so far this year. One niche in this space that has been hit the hardest has been in asset managers.
These companies have been declining from the one-two punch of a slowing economy, and a decline in asset values as well. These stocks are now down about twice as much as the S&P 500 index.
» FULL STORY | | | | |
| | Insider Trading Report: Nike (NKE) | | | | John Rogers, a director at Nike (NKE), recently added 10,000 shares. The buy increased his by nearly 64 percent, and came to a total cost of just over $1.02 million.
This marks the first insider buy at the company since early 2020. Company insiders, including both executives and directors, have been sizeable and regular sellers of shares over the past three years.
» FULL STORY | | | | |
| | Unusual Options Activity: Marvell Technology (MRVL) | | | | Shares of semiconductor company Marvell Technology (MRVL) have lost over a quarter of their value in the past year. One trader sees a potential rebound ahead in the coming months.
That's based on the September $42.50 calls. With 72 days until expiration, 18,092 contracts traded compared to a prior open interest of 154, for a 117-fold jump in volume on the trade. The buyer of the calls paid $4.85 to get in.
» FULL STORY | | | | |
| | • | Biden May Roll Back China Tariffs
President Biden is considering rolling back some trade tariffs with China, largely set in place by former President Donald Trump. While the administration is still looking to ensure that China doesn't take advantage of the US on trade issues, such a move could allow for lower prices and could help ease inflation. | | | | • | Euro Hits 20 Year Low Against Dollar
The Euro is now trading for under $1.03, a 20 year low against the US dollar. The move has occurred as global traders have been cashing out of risk assets and moving into dollars, and as investor morale in the Eurozone has hit its lowest level since May 2020. | | | | • | Inflation Hits 80 Percent in Turkey
The annual rate of inflation in Turkey has hit 80 percent in June. That's the highest level in two decades. The biggest driver has been food prices, which have nearly doubled in the past year. The country has been experiencing higher inflation than other nations due to a crashing Lira, which has made imports more expensive. | | | | • | 30 Percent of Dry Cleaners Have Gone Out of Business
Roughly 30 percent of dry cleaning companies, largely mom-and-pop operations, have gone out of business in the past two years as fashion trends have shifted during the pandemic. Remaining companies report rising costs for goods such as starch, steam irons, and utilities are creating a squeeze on profits as well. | | | | • | Glance to Launch in US
Glance, an adtech company, is looking to launch in the US within the next two months. The company offers a lock screen platform on Android smartphones, which allows companies to offer ads and other services such as game from the screen of a phone without having to fully unlock it. | | |
| | | | TOP | | | ETSY | 10.55% | | | | NCLH | 10.062% | | | | CZR | 9.421% | | | | MELI | 8.488% | | | | ZM | 8.408% | | | | BOTTOM | | | HAL | 8.304% | | | | APA | 7.497% | | | | COP | 7.013% | | | | HES | 6.955% | | | | FCX | 6.747% | | | | |
| | |  | | Weakness to date has been almost entirely multiple contraction, earnings are the next shoe to drop. Guidance during Q2 and Q3 earnings season will ultimately dictate the depth of this selloff, but the market likely cannot sustain a new bull market until inflation and inflation expectations are well under control and the Fed can, at a minimum, back off the hawkish rhetoric. | | - Ross Mayfield, Baird investment strategy analyst, on why earnings will likely result in the market's next move, whether up or down. | |
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