 | | |  Good morning. Last year, we cautioned that low interest rates and historically low mortgage rates wouldn't last. If you timed the bottom in rates last year perfectly, mortgage rates were about half of what they are today. As that trend looks to continue higher, housing is starting to show signs of slowing down as well.
For those who own their homes, that may mean a drop in the home's value. If you're not looking to sell anytime soon, that's not a problem. But for investors, this can mean an opportunity to get into the housing market in the next few months. While interest rates may be far higher now, traders are betting on rate cuts as early as next year, which could mean the ability to refinance at lower rates.
In short, now is the time to head to the sidelines in this market, but look to potentially get a buy in the months ahead, or even early next year when pricing will be better.
Now here's the rest of the news: | | | | | |
| | |  | DOW 33,912.44 | +0.45% | | | | | S&P 4,297.14 | +0.40% | | | | | NASDAQ 13,128.05 | +0.62% | | | | | *As of market close | | | • | Stocks moved higher on Monday, shaking off morning losses. | | | • | Oil dropped 3.5 percent, closing at $88.91 per barrel. | | | • | Gold slid 1.2 percent, last going for $1,794 per ounce. | | | • | Cryptocurrencies traded mixed, with Bitcoin at $24,008 at the stock market close. | | | | | | | |
| | | Build Your List of "Catalyst" Stocks Now | | | | The market has recovered nearly half of its losses from the bottom – and in just the span of a few short weeks. That may not mean we're out of the woods yet. But investors looking for stocks that could have a large move from here need to look for a company with a catalyst.
That could be a new product or service, or simply a company that benefits from a macroeconomic trend like lower inflation rates.
» FULL STORY | | | | |
| | Insider Trading Report: Desktop Metal (DM) | | | | Ric Fulop, CEO at Desktop Metal (DM), recently picked up 30,000 shares. The buy increased his stake by 0.14 percent, and came to a total purchase price of $92,700.
This is the CEO's second buy this year, following a 128,850 share pickup back in March. Those constitute the only insider buys since the company went public last year. One director sold shares last year, at a far higher price than where the stock trades today.
» FULL STORY | | | | |
| | Unusual Options Activity: Microsoft (MSFT) | | | | Shares of tech giant Microsoft (MSFT) have rebounded nicely with the overall stock market in recent weeks. One trader sees the stock trending down next.
That's based on the December $300 put. With 122 days until expiration, 4,011 contracts traded compared to a prior open interest of 116, for a 35-fold rise in volume on the trade. The buyer of the puts paid $21.28 to bet on a drop in shares.
» FULL STORY | | | | |
| | • | China Sees Slowing Economy
China reported that its economy slowed more than expected in July. Nearly all major indicators fell short of expectations. The slowdown has occurred as the country has continued to impose strict Covid lockdowns in cities where the virus has emerged, and as the country's property market remains bearish. | | | | • | Argentina Raises Interest Rates to 69.5 Percent
Argentina's central bank has raised interest rates by 9.5 percent, to 69.5 percent. That's the second rate hike in two weeks, as the government reports that prices rose 7.4 percent in July, or a 71 percent annualized rate. The inflation rate is the highest in 20 years for the South American country. | | | | • | Freight Shipping Rates Show Signs of Easing
US freight rates declined 2 percent month-over-month in July. That's another indictor that inflation may be peaking in the US. However, according to Cass Information Systems, freight rates are still up 28 percent year-over-year, and truck prices have doubled since 2019 amid a driver shortage, so a steeper decline may take some time. | | | | • | Investors Continue to Bet on Lower Inflation
After seeing the first year-over-year drop in inflation rates in some time, investors are betting the trend will continue. Traders are increasing their bets that the Federal Reserve will raise interest rates by 0.5 percent in September, rather than by 0.75 percent. And the market has started to price in rate cuts in the first half of 2023. | | | | • | Uber Moves to Subscription Model
Ride share company Uber (UBER) is phasing out its free loyalty program, first launched in 2018 for frequent riders. Instead, the company will launch a subscription program, which will start at $9.99 per month or $99.99 annually, and provide a discount on ride as well as $0 delivery fees on food or groceries. | | |
| | | | TOP | | | ILMN | 8.768% | | | | GILD | 5.162% | | | | VRTX | 3.738% | | | | TTWO | 3.451% | | | | ZM | 3.338% | | | | BOTTOM | | | WBD | 4.094% | | | | NOV | 3.759% | | | | SLB | 3.716% | | | | HAL | 3.655% | | | | FCX | 3.542% | | | | |
| | |  | | We are not arguing that the market will make new highs this year (we are more in the trading range camp), but we would not be surprised to see a run toward the highs as inflation eases and the Fed slows the pace of rate hikes. | | - Michael Darda, Chief Economist at MKM Partners, on why the market's recent winning streak may continue, even if it doesn't lead to a retest of the prior highs. | |
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