Thursday, July 7, 2022

📣What These Two Presidents Get Wrong About Inflation and Gas Prices

Good morning. At a rally over the weekend, former President Trump stated that if he were still...
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. At a rally over the weekend, former President Trump stated that if he were still in office, inflation wouldn't be as bad as it is. That's likely incorrect. Much of today's inflation comes from the trillions in pandemic-era spending, which the then-president signed into law. Ongoing supply chain issues, another factor keeping some prices high to this day, also occurred at the time.

Meanwhile, President Biden tweeted over the weekend that gas stations need to lower prices at the pump now. That's also incorrect. Gas stations largely break even at best on the sales of gasoline, and the price of oil is far outside their control.

With policymakers past and present having a tough time understanding basic economics right now, at least traders can rely on the Federal Reserve to keep the market exciting. The central bank's latest minutes show they're not ready to end their rate hiking policy yet. So continue to expect more market downside at the worst, and more daily volatility in stocks as a best-case scenario.

Now here's the rest of the news:

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MARKETS
DOW 31,037.68 +0.23%
S&P 3,845.08 +0.36%
NASDAQ 11,361.85 +0.35%
*As of market close
Stocks closed higher on Wednesday, following the latest Federal Reserve meeting minutes.
Oil dropped 1 percent, closing at $98.56 per barrel.
Gold slid 1.4 percent, last going for $1,739 per ounce.
Cryptocurrencies traded flat, with Bitcoin at $20,306 at the stock market close.

Today's TOP TIPS
This Investment Strategy Works in Any Market Environment and Offers Safe Returns Now
There are many investment strategies that best work in a market that's moving in a direction, whether up or down. In sideways markets, other strategies, often related to income, tend to perform better. While the market is likely in a decline, but is prone to some strong rallies along the way, only a few strategies offer a solid prospective return.

One such strategy is arbitrage. It's best known for trying to find immediate price differences in an asset across markets.

» FULL STORY

Insider Trading Report: Tilly's (TLYS)
Michael Henry, CFO at Tilly's (TLYS), recently added 4,400 shares to his holdings. The buy increased his stake by over 15 percent, and came to a total price over $30,600.

This is the third buy from the company CFO this year. No other executives have been buyers, and insiders, including executives, directors, and major holders, have largely been sellers of shares going back to 2020.

» FULL STORY

Unusual Options Activity: American Airlines Group (AAL)
Shares of airline operation American Airlines Group (AAL) have shed over 37 percent of their value in the past year. One trader sees the possibility for a further decline in the next two years.

That's based on the June 2024 $3 puts. With 715 days until expiration, 8,774 contracts traded compared to an open interest of 138, for a 64-fold rise in volume on the trade. The buyer of the puts paid $0.46 to make the bearish bet.

» FULL STORY

IN OTHER NEWS
Job Openings Fall, But Still Exceed Available Workers

The latest jobs data indicates that 11.25 million jobs were open in May. That's a notable drop from 11.68 million in April. However, with unemployment just under 6 million, there are still 1.9 jobs available for every worker, still near historic highs.
Toyota Issues First Recall on an Electric Car

Toyota Motors (TM) has issued recalls for its first electric car model, the BZ4X electric SUV. The recall has been initiated on the discovery that nuts or bolts can loosen, causing wheels to fall off, even after a relatively small number of miles on the road. The company recommends that owners stop driving the vehicles immediately.
Amazon Partners With GrubHub on Restaurant Delivery

Amazon (AMZN) is adding Grubhub to its Amazon Prime member services. That will allow Prime users to access the service for restaurant delivery. The move also comes with Amazon taking a 2 percent stake in the company, with the potential to own up to 15 percent of the company based on performance.
Marriott Reports Another Data Breach

Hotel chain Marriott International (MAR) has reported another data breach. The breach occurred back in June. The data involved includes nearly 20 gigabytes of potentially sensitive information such as guest data and credit card info for about 300-400 individuals.
Voyager Digital Files for Bankruptcy

Cryptocurrency broker and lending platform Voyager Digital (VYGVF) is filing for bankruptcy. The company is voluntarily entering Chapter 11 bankruptcy. This is the latest digital asset firm with leverage to the space being hit hard by the massive drop in cryptocurrencies in recent months.

S&P 500 MOVERS
TOP
LHX  3.767%
GWW  3.289%
CEG 3.276%
WST 3.14%
CTLT 3.038%
BOTTOM
NCLH 9.591%
RCL 7.19%
CCL 6.77%
M 6.489%
CZR 4.662%

Quote of the Day
[The market] has been bracing for [a recession], and now it may actually be embracing it, the idea being: let's just get it over with, we're going have a recession, let's do it. Let's clean out the excesses and start all over again. The market starting to look ahead into next year and that could very well be a recovery year from whatever this recessionary environment turns out to be. We're all kind of doing a Hamlet recession – to be or not to be. I'm kind of thinking that there's going to be a mild recession.
- Ed Yardeni of Yardeni Research, on why the market is likely pricing in a mild recession playing out, with an eye towards an economic recovery next year.

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Yet, most investors are losing their shirts on the wrong coins. Because they have no idea what's really going on in the market.

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