Monday, July 4, 2022

👉These Companies Are Secretly Benefitting from Rising Interest Rates Now

Good morning, and Happy Independence Day! Rising interest rates have brought down stocks. They're...
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, and Happy Independence Day! Rising interest rates have brought down stocks. They're raising the costs of owning a home. And they're lowering the price of bonds to drive yields up.

But banks are benefitting from this trend. How? By parking cash overnight with the Federal Reserve. In a process known as a reverse repo, banks are lending out $2.3 trillion overnight to the Fed. And that overnight rate works out to about $100 million per day thanks to a 1.55 percent rate. And that's before excess reserves also collect interest at the Fed.

With interest rates continuing to rise, chances are financial companies will continue to benefit operationally, which may also help their share prices in the coming months.

Now here's the rest of the news:

Sponsored Content

MARKETS
DOW 31,097.46 +1.05%
S&P 3,825.35 +1.06%
NASDAQ 11,127.85 +0.90%
*As of market close
Stocks closed higher on Friday, ending near highs of the day.
Oil rose 2.3 percent, closing at $108.20 per barrel.
Gold traded flat, around $1,808 per ounce.
Cryptocurrencies traded slightly higher, with Bitcoin at $19,379 at the market close.

Today's TOP TIPS
These "First-Half" Market Winners May Continue Trending Favorably for Longer
The stock market just had its worst start to a year since 1970. That trend looks likely to continue, as interest rates need to rise further to slow down inflation.

Most companies are down, with some tech stocks notching losses of as much as 70 percent so far this year. But a few companies have managed to hold steady, or even deliver a slight gain. They may continue to be relative leaders in this market for a few more months yet.

» FULL STORY

Insider Trading Report: RE/MAX Holdings (RMAX)
Magnolia Capital Fund, LP, a major owner of RE/MAX Holdings (RMAX), recently added to their stake with a 33,102 share buy. The purchase increased their stake by about 1.7 percent, and came to a total cost just over $811,000.

This is the fund's second buy in the past month, following a 40,239 share buy for just under $883,000 earlier in June. These are the sole insider buys in the past three years. Company insiders have been modest sellers otherwise over the past three years.

» FULL STORY

Unusual Options Activity: Clarus Corporation (CLAR)
Shares of outdoor equipment producer Clarus Corporation (CLAR) have been in a downtrend for the past year. One trader sees the possibility for a rebound in shares in the next few months.

That's based on the February $20 calls. With 228 days until expiration, 15,059 contracts traded compared to a prior open interest of 227, for a 66-fold rise in volume on the trade. The buyer of the calls paid $4.35 to get into the position.

» FULL STORY

IN OTHER NEWS
Commerce Department Looks at Stronger Enforcement of Tech Restrictions

The Commerce Department's Bureau of Industry and Security is looking at increasing enforcement efforts for sensitive-technology restrictions. The move comes as national security issues are on the rise, with an eye towards curbing keeping sensitive technology out of the hands of countries like Russia and China.
Supreme Court Reins In EPA

In a 6-3 vote, the supreme court has restricted the power of the Environmental Protection Agency (EPA) to restrict carbon emissions from power plants. The ruling makes it clear that Congress needs to make regulations to deal with climate change, not the agency.
China Sees First Growth Since February

China has reported its first months of growth since February. The company's PMI data indicates a level of 50.2, a sign that activity is increasing overall. The non-manufacturing PMI also jumped from a slight decline of 47.8 in May to 54.7 in June.
Facebook Tests NFTs With Creators

Meta Platforms (META) is looking to test out NFT support on its Facebook platform. The NFTS will be made in conjunction with select creators. Users will be able to post NFTs on their timeline and share details about the collection and creator. The test will also allow users to cross-post NFTs on Instagram as well.
FTX Buys BlockFi For $25 Million

Crypto exchange FTX is looking to buy BlockFI in a deal valued at $25 million. That's on top of the $250 million in emergency credit FTX has extended to the company. The price tag is far under the company's last valuation at $4.8 billion. The move comes as a number of brokerages have been under pressure for liquidity issues in recent weeks.

S&P 500 MOVERS
TOP
ETSY  8.879%
PHM  6.561%
WBD 6.073%
DHI 5.605%
LEN 5.477%
BOTTOM
LRCX 7.414%
KLAC 7.318%
ON 7.205%
ASML 5.663%
AMAT 5.221%

Quote of the Day
We do not believe the stock market has bottomed yet and we see further downside ahead. Investors should be holding elevated levels of cash right now. We see the S&P 500 bottoming at around 3,100, as the Federal Reserve's aggressive, but necessary inflation-fighting measures are likely to depress corporate earnings and push stocks lower.
- George Ball, chairman of Sanders Morris Harris, on why the stock market is likely to continue trending lower, even after it posted its worst first-half return to a year since 1970.

Sponsored Content

Not sure the best way to get started?
Follow these simple steps to hit the ground running.

› Step #1 - Get These FREE Reports:

Warren Buffett's Top 5 Stocks | 10 Great Stocks Under $10 |
7 High Yield Dividend Stocks

› Step #2 - Join Our Premium Advisory:

The Next Superstock

› Step #3 - Claim Your Free Copy Of:

Big Book Of Chart Patterns | How to Trade Weekly Options For Weekly Income

We just wanted to take a moment and say thank you so much for being part of our family! We are dedicated to teaching people how to make the world a better place so we can all thrive, together. We love sharing stories and featuring past learners who have applied our teachings and changed their situations. It's our passion to build a strong community centered around fun and mindset! We love to discover extraordinary and useful tools and share them with the world! We create a space where people can discover how to enjoy their lives by simply choosing to learn. Every day we are building and strengthening partnerships with our customers and clients and we do so in the most ethical way possible. We particularly love working with artisans, makers, and small businesses because through their passion and their craft they help make the world a better place.. Without all of you we wouldn't be able to do what we do on a daily basis and for that we say thank you. We've been living our dream for many years now and that wouldn't be possible without every single one of you. The idea of going from a typical nine to five life to a life of freedom doesn't seem real to most people, but we want you to know it is definitely possible. We've done it. You have the power to control your life, your actions, and what you choose to focus on. We're here to help you along that journey to achieve whatever goals you set out for yourself. However, we also care about keeping you and your privacy safe. We are committed to advising you of the right to your privacy. We strive to provide a safe and secure user experience. Our Privacy Policy explains how we collect, store and use personal information, provided by you on our website. It also explains how we collect and use non-personal information. By accessing and using our website, you explicitly accept, without limitation or qualification, the collection, use and transfer of the personal information and non-personal information in the manner described in this Privacy Policy. Please read this Policy carefully, as it affects your rights and liabilities under the law. If you disagree with the way we collect and process personal and non-personal information, please do not use this website. This Policy applies to this website as well as all webpages Company hosts. It regulates the processing of information relating to you and grants both of us various rights with respect to your personal data. It also informs you of how to notify us to stop using your personal information. We are located in the United States of America. You may be located in a country that has laws which are more restrictive about the collection and use of your personal information. However, by using our website, you agree to waive the more restrictive laws and agree to be governed by the laws of the United States of America. If you wish to view our privacy policy, you can find it below.



Nothing in this email should be considered personalized financial advice. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

By reading this communication, you agree to the terms of this disclaimer, including, but not limited to: releasing The Company, its affiliates, assigns and successors from any and all liability, damages, and injury from the information contained in this communication. You further warrant that you are solely responsible for any financial outcome that may come from your investment decisions.

As defined in the United States Securities Act of 1933 Section 27(a), as amended in the Securities Exchange Act of 1934 Section 21(e), statements in this communication which are not purely historical are forward-looking statements and include statements regarding beliefs, plans, intent, predictions or other statements of future tense.

Investing is inherently risky. While a potential for rewards exists, by investing, you are putting yourself at risk. You must be aware of the risks and be willing to accept them in order to invest in any type of security. Don't trade with money you can't afford to lose. This is neither a solicitation nor an offer to Buy/Sell securities. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this web site. The past performance of any trading system or methodology is not necessarily indicative of future results.



 

This email was sent to edwardlorilla1986.paxforex@blogger.com by editor@tradingtips.com

TradingTips.com | 3435 Ocean Park Blvd. Suite 107-334 Santa Monica, CA 90405

Manage Subscriptionsreport SPAM


 

No comments:

Post a Comment

Trump has a new energy czar

Your guide to the political forces shaping the energy transformation ...