Good morning. Typically, in a recession, lower demand leads to lower prices for energy...
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. Typically, in a recession, lower demand leads to lower prices for energy commodities. Fewer people driving to work, less construction, and less activity will tend to make that happen. Yet oil prices have been holding up strong, as supply has remained tight.
Even Elon Musk, the billionaire who has revolutionized electric vehicles, sees the issue right now. He just warned that the world isn't fully ready to go green yet—and that without oil and gas, "civilization will crumble."
With today's supply and demand imbalance, traders may want to look at going long on energy trades. In volatile markets, that can mean buying on a down day and selling on a pop higher for any sort of conventional energy-based trade.
Now here's the rest of the news: | | | | | |
| | |  | DOW 32,098.99 | -0.57% | | | | | S&P 4,030.61 | -0.67% | | | | | NASDAQ 12,017.67 | -1.02% | | | | | *As of market close | | | • | Stocks moved lower on Monday, adding to Friday's steep losses. | | | • | Oil rose 4.2 percent, closing at $96.96 per barrel. | | | • | Gold traded flat, last going for $1,749 per ounce. | | | • | Cryptocurrencies also trended lower, with Bitcoin at $20,119 at the stock market close. | | | | | | | |
| | | Stick With Defensive Stocks in the Months Ahead | | | | Investors expecting a turnaround in stocks this fall just had their hopes dashed. But investors who continue to stick with companies with great long-term potential can fare well.
In today's environment, companies that play to a defensive nature – where consumers tend to spend no matter how the economy performs—offer good returns relative to today's risks. Investing in these companies now, with share prices down, can offer moderate gains with less potential downside going forward.
» FULL STORY | | | | |
| | Insider Trading Report: Intel Corp (INTC) | | | | Patrick Gelsinger, CEO at Intel Corp (INTC), recently picked up 14,800 shares. The buy increased his holdings by nearly 8 percent, and came to a total cost just over $501,000.
This is the first insider activity at the company since May, when the company CFO bought alongside the CEO as well. Since the start of the year, insider buying has more than exceeded insider selling. Over the past three years the picture is more evenly mixed between buying and selling.
» FULL STORY | | | | |
| | Unusual Options Activity: Alamos Gold Inc (AGI) | | | | Shares of gold exploration and production company Alamos Gold Inc (AGI) are trading flat over the past year. One trader sees the potential for a big drop in the coming weeks.
That's based on the October 21 $7.50 puts. With 52 days until expiration, 5,257 contracts traded compared to a prior open interest of 187, for a 28-fold rise in volume on the trade. The buyer of the puts paid $0.53 to make the bet.
» FULL STORY | | | | |
| | • | Number of Americans Living Paycheck to Paycheck Drops
59 percent of Americans reported living paycheck to paycheck in July, according to a report by LendingClub. That number is down from 61 percent in June, showing the first drop in nearly a year. In July 2021, the number of adults reporting that they were living paycheck to paycheck was 54 percent. | | | | • | Water Scarcity Emerges Amid Droughts
Nearly 90 million Americans are currently under drought conditions, as rainfalls have been low this year. The issue is global, as a number of rivers in Europe are also at their lowest levels in centuries. Water scarcity is leading to some changes in water use, such as natural landscaping, but could also potentially keep food prices high for the foreseeable future. | | | | • | Yuan Hits Lowest Level in Two Years
The Chinese yuan has hit its lowest level in two years, following the latest comments by the Federal Reserve. The yuan now trades at 6.9277 to the US dollar. Typically, the Chinese government tends to keep the yuan in a loose peg with the US dollar, given the massive amount of trade between the two countries. | | | | • | Honda and LG Energy Plan US EV Battery Factory
Honda Motor Company (HMC) is partnering with LG Energy Solution to build a $4.4 billion electric vehicle battery factors in Ohio. The factory is expected to begin construction early next year, and hit mass production by the end of 2025. This will allow the company to expand its EV output in the US. | | | | • | Facebook Looks to Settle Cambridge Analytica Lawsuit
Meta Platforms (META) owner of Facebook, is looking to settle a its class action lawsuit related to the Cambridge Analytica scandal. The size of the settlement has not been disclosed, but the company has asked that the class action be put on hold for 60 days to finalize a written statement. | | |
| | | | TOP | | | FANG | 4.599% | | | | APA | 4.467% | | | | MRO | 3.44% | | | | HAL | 3.232% | | | | CAH | 3.21% | | | | BOTTOM | | | CTLT | 6.996% | | | | BMY | 5.928% | | | | TCOM | 4.486% | | | | CF | 3.912% | | | | JBHT | 3.209% | | | | |
| | |  | | We do believe the Fed. We believe what they say that rates are going to be higher for longer and we've seen some repricing of the cuts in 2023. We think there's more to go on that front and it's likely to continue to fuel equity volatility from here. | | - Zach Hill, head of portfolio management at Horizon Investments, on the Fed's hawkish stance, even as many traders were expecting a pivot by the central bank sooner rather than later. | |
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