Good morning. The Biden Administration is moving forward with a plan to cancel $10,000 in student...
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 Biden Administration is moving forward with a plan to cancel $10,000 in student loan balances, with most of that going to those who are earning under $125,000 per year. But the debt isn't really being cancelled – it's simply being transferred to the government's balance sheet from hundreds of thousands of individuals.
That will create some inflationary pressure, but mostly on lower-cost goods. That's because money that would go to debt payments can go elsewhere. But for investors, that will likely result in a boost in demand for consumer goods, which should be good for those stocks in the coming months. As for a loser? There isn't an obvious one, given that the loans are ultimately being transferred.
What this does mean is that inflation may be slightly higher than it would be otherwise, a trend that may play out in a few months. For now, stick with quality companies, and look for those firms best capable of passing along higher prices to their customers.
Now here's the rest of the news: | | | | | |
| | |  | DOW 33,291.78 | +0.98% | | | | | S&P 4,199.14 | +1.41% | | | | | NASDAQ 12,639.27 | +1.67% | | | | | *As of market close | | | • | Stocks moved higher on Thursday, ahead of a speech from the Fed Chairman today. | | | • | Oil dropped 1.8 percent, closing at $93.18 per barrel. | | | • | Gold rose 0.5 percent, last going for $1,770 per ounce. | | | • | Cryptocurrencies traded mixed, with Bitcoin at $21,611 at the stock market close. | | | | | | | |
| | | Use Short-term market Weakness to Profit from Long-Term Tech Trends | | | | The economy is slowing down, and even meets the technical definition of a recession. But every recession is different. This time, the economy is slowing as pandemic stimulus wears off and as central bankers look to tackle inflation.
That trend won't end the technology transformations underway today. A number of promising news ideas are coming to fruition in the coming years, and investors who buy when the market is down now can get a high reward later.
» FULL STORY | | | | |
| | Insider Trading Report: Kohl's Corp (KSS) | | | | Jonas Prising, a director at Kohl's Corp (KSS), recently bought 10,000 shares. The buy increased his holdings by nearly 20 percent, and came to a total cost just under $297,000.
A different director bought 25,000 shares in the last week, paying just over $750,000 to increase their stake by nearly 35 percent. Those mark the only insider transactions at the company since early 2020, when the same two company directors last bought shares.
» FULL STORY | | | | |
| | Unusual Options Activity: PepsiCo (PEP) | | | | Beverage and snack company PepsiCo (PEP) are one of the few companies to be trading near 52-week highs in today's market. One trader sees the stock declining in the weeks ahead.
That's based on the October $120 put. With 56 days until expiration, 10,953 contracts traded compared to a prior open interest of 157, for a 70-fold rise in volume on the trade. The buyer of the puts paid $0.13 to bet on a move lower.
» FULL STORY | | | | |
| | • | Mortgage Rates Rise Back to 5.5 Percent
30-year, fixed rate mortgages rose to 5.5 percent this week. That's a 0.42 point rise compared to the prior week. It's also the highest level since June. Higher rates will slow homebuying activity, which could lead to a downturn in home prices. Interest rates are expected to rise again after the Fed's next meeting in September. | | | | • | Ports Still Struggling with Processing Cargo
Even with a decline of shipments from China, US ports are reporting higher warehouse prices, cancelled sailings, and stuck vessels. The port congestion on the West Coast has also led to a rise in demand for port services in the Gulf of Mexico and the East Coast, which has pushed up prices there. | | | | • | Long Covid Cases Stalling Work Prospects for Millions
A new study suggests that nearly 16 million working-age Americans may have long Covid cases today. The symptoms make work challenging. As a result, estimates are that 2-4 million may be out of work due to long Covid, potentially representing as much as 1.8 percent of the US workforce. | | | | • | Citigroup Plans Exit from Russian Market
Wall Street bank Citigroup (C) is looking to wind down its Russian consumer bank operations. The bank has previously tried to sell the unit, even before Russia's invasion of Ukraine. The move is expected to result in $170 million in costs over the next 18 months. | | | | • | PayPal Debuts "Grant Payments" Feature
PayPal (PYPL) is launching a Grant Payments feature on its platform. The system includes a dashboard showing grant details, donor information, and other record-keeping features. The platform is looking to move charitable giving from its current paper check system to a more modern electronic transfer. | | |
| | | | TOP | | | NTAP | 7.882% | | | | ON | 6.497% | | | | FCX | 6.13% | | | | DISH | 6.114% | | | | RCL | 5.198% | | | | BOTTOM | | | DLTR | 10.23% | | | | CRM | 3.389% | | | | TAP | 1.643% | | | | BALL | 1.321% | | | | BMY | 1.27% | | | | |
| | |  | | We're really in a situation where the markets are betwixt and between. It's really waiting for some more significant news at the end of the week with the Jackson Hole speech and the PCE, so what we're really seeing is just investors, I think, modestly floating up and down with the downward bias. | | - Lisa Erickson, U.S. Bank Wealth Management analyst, on why the market has taken on a holding pattern this week ahead of today's Fed speech and new economic data. | |
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