Tuesday, September 13, 2022

😎All Eyes on CPI as Investors Determine Where Markets Go from Here

Good morning. The latest CPI numbers will come out this morning. It's likely on track to be...
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 latest CPI numbers will come out this morning. It's likely on track to be close to multi-decade highs. It's also likely that we'll see a year-over-year slowdown. Whatever happens, it will likely cement the likelihood of a 0.75 percent rate hike when the Fed meets on September 21.

The past few weeks have seen some volatility surrounding the Fed's most recent comments. The data is unlikely to change that yet. Investors need to continue to expect interest rates to remain higher for longer, and for assets like stocks to remain near their yearly-lows as a result. Following the last week's rally, traders should continue to look for trades that can profit in a market decline.

Now here's the rest of the news:

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MARKETS
DOW 32,381.34 +0.71%
S&P 4,110.41 +1.06%
NASDAQ 12,266.41 +1.27%
*As of market close
Markets moved higher on Monday, with stocks again closing near their highs of the day.
Oil rose 1.3 percent, to $87.93 per barrel.
Gold rallied 0.4 percent, last going for about $1,736 per ounce.
Cryptocurrencies generally moved higher, with Bitcoin at $22,415 at the stock market close.

Today's TOP TIPS
Stick With Tech Companies Increasing Billables Now
Valuations on tech stocks have been hit hard in the past year. That's because a number of companies have shown that their growth projects were unable to handle a slowing economy. Other tech firms have had no such problems, however, even if these positive developments haven't been reflected in their stock price.

One way to look at how these companies are performing is by looking at how their billables are changing now.

» FULL STORY

Insider Trading Report: PennyMac Mortgage Investment Trust (PMT)
David Spector, Chairman and CEO of PennyMac Mortgage Investment Trust (PMT), recently added 20,000 shares. The buy increased his holdings by over 9.4 percent, and came to a total purchase price just under $275,000.

This is the first insider buy at the company since February. Overall, company insiders have been fairly active over the past few years as sellers of shares. It's only during lower price points for the company such as now and in early 2020 that insiders have been buyers.

» FULL STORY

Unusual Options Activity: The Wendy's Company (WEN)
Shares of fast-food giant The Wendy's Company (WEN) have performed about in-line with the stock market over the past year. One trader sees shares bucking that trend with a move higher in the coming weeks.

That's based on the November $20 calls. With 66 days until expiration, 62,762 contracts traded compared to a prior open interest of 904, for a 39-fold jump in volume on the trade. The buyer of the calls paid $1.63 to get into the trade.

» FULL STORY

IN OTHER NEWS
Restoration Hardware CEO Warns We're in a Recession

Gary Friedman, the CEO of luxury home goods company Restoration Hardware (RH), has come out and stated that anyone who thinks the United States isn't in a recession is "crazy." The statement came after the company beat earnings expectations, as luxury brands tend to fare better during economic downturns.
Hesitation to Buy Pushing Prospective Homeowners Away

With rising mortgage rates and a slowdown in home prices, many prospective buyers are either priced out of the market or expect declines. That's pushing them to continue renting, even as rental costs have been soaring in recent years with little prospect of a slowdown as housing demand remains strong.
Wells Fargo Settles 401(k) Probe

Wells Fargo (WFC) has agreed to pay $145 million to settle a probe into whether or not the company's 401(k) plan overpaid for the bank's stock between 2013 and 2018. The complaint was filed with the Department of Labor. Under the agreement, the bank will neither admit or deny the allegations.
Ford Adds Hands-Free Feature to Lincoln Corsair

Ford Motors (F) is extending its hands-free driving system to its Lincoln Corsair model, a first for an entry-level vehicle in the company's lineup. The Corsair retails for about $40,000. The hands-free system uses cameras and sensors for hands-free driving on 130,000 miles of highways in North America.
Google Completes Acquisition of Mandiant

Google (GOOG) has completed its acquisition of cybersecurity firm Mandiant. The $5.4 billion bid was first made back in March, less than a year after Mandiant was spun out of FireEye (FEYE). The brand will continue under its own name, with operations under the Google Cloud space.

S&P 500 MOVERS
TOP
DXC  5.213%
APA  4.739%
GILD 4.259%
ZBH 3.978%
BMY 3.856%
BOTTOM
MOS 6.33%
SIVB 4.336%
AMGN 4.175%
CF 3.482%
ADM 3.351%

Quote of the Day
The case for the ongoing bear market is that the Fed will continue to tighten monetary policy, withdraw liquidity from the market and cause a tailspin for equities. But this [last] week's market recovery has shown there is continued resilience in the economy bolstered by favorable economic reports.
- David Donabedian, chief investment officer of CIBC Private Wealth U.S, on why the stock market will likely trend down in the coming months, but with strong rallies given the economy's strength.

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