Good morning. There are plenty of ways of looking at the economy. Measures like GDP, however,...
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.
 | | |  | DOW 30,183.78 | -1.70% | | | | | S&P 3,789.93 | -1.71% | | | | | NASDAQ 11,220.19 | -1.79% | | | | | *As of market close | | | • | Markets moved lower on Wednesday, as the Fed raised interest rates 0.75 percent. | | | • | Oil dropped 0.7 percent, closing at $83.34 per barrel. | | | • | Gold rose 0.6 percent, last going for about $1,680 per ounce. | | | • | Cryptocurrencies trended lower, with Bitcoin at $19,039 at the stock market close. | | | | | | | |
| | | Consider Companies Rightsizing their Executive Suites Now | | | | In normal markets, news of a layoff can lead to a share price going higher. The market tends to interpret that as a company reducing headcount, especially if the company has been growing. Today, it may lead to a selloff, as traders may be concerned that the company is shrinking.
But companies that are looking to streamline just parts of their business, particularly in its executive suites with cuts at the corporate level, can send a message that they're concerned about costs.
» FULL STORY | | | | |
| | Insider Trading Report: APi Group Corp (APG) | | | | Anthony Malkin, a director at APi Group Corp (APG), recently picked up 92,145 shares. The buy increased his stake by a massive 706 percent, and came to a total cost of just under $1.4 million.
That follows up on a number of buys by the director in the past few weeks, and a 37,800 share buy back in June. Going further back, company executives have also been regular buyers of shares, with no insider sales in the past three years.
» FULL STORY | | | | |
| | Unusual Options Activity: GameStop (GME) | | | | Shares of video game retail platform GameStop (GME) are down 39 percent over the past year, nearly four times as much as the overall stock market. One trader sees a further decline in the coming weeks.
That's based on the November 18th $26.25 put options. With 57 days until expiration, 4,550 contracts traded compared to a prior open interest of 149, for a 31-fold rise in volume on the trade. The buyer of the puts paid $4.08 to make the bet.
» FULL STORY | | | | |
| | • | Home Sales Drop for Seventh Straight Month
US home sales fell in August by 0.4 percent compared to July, for a seasonally-adjusted annual rate of 4.8 million. That's the lowest level since May 2020. Overall, August sales are down 19.9 percent compared to a year earlier. That's the seventh-straight month of declining sales, as mortgage rates have been rising rapidly. | | | | • | Two-Year Treasury Yield Tops 4 Percent
The two-year Treasury yield hit 4 percent ahead of the Fed's latest interest rate hike yesterday. That's the first time since 2007 that rates have been so high. It's also higher than the ten-year yield of 3.56 percent. This is one of the largest inversions, and a sign that investors expect an economic slowdown worsening into 2023. | | | | • | US Dollar Hits 20-Year High
The US dollar has hit a 20-year high against a basket of other currencies. The move has occurred amid a backdrop of Russia announcing a further mobilization of troops. Typically, investors move to the dollar amid economic and political uncertainty. And with the Fed raising interest rates rapidly, the dollar is in a relatively strong position to other currencies right now. | | | | • | America Gained 2.5 Million Millionaires in Last Year's Boom
Nearly 5.2 million people became millionaires – as measured in US dollars – last year, amid the end of the recent market boom, according to a report by Credit Suisse. Of that number, 2.5 million lived in America. That's the largest increase in millionaires on record, although this year's market pullback will likely lead to an overall drop in 2022. | | | | • | Nvidia Reveals Drive Thor
Graphics processing giant Nvidia (NVDA), has revealed its Drive Thor. The chip is designed to control all software-defined vehicles, and play to the growing complexity of the automotive chip market. Thor is expected to hit production in 2025, and makes a substantial increase from the company's existing vehicle chip product, Drive Orin. | | |
| | | | TOP | | | GIS | 5.795% | | | | K | 2.826% | | | | ILMN | 2.165% | | | | KHC | 2.092% | | | | CPB | 2.083% | | | | BOTTOM | | | CZR | 6.575% | | | | WBD | 5.829% | | | | LVS | 5.805% | | | | CCL | 5.134% | | | | LYV | 4.996% | | | | |
| | |  | | I think they have to continue to sound hawkish because they're far from their inflation goal and demand and the labor market are still running too hot relative to supply. | | - Kathy Bostjancic, Oxford Economics analyst on why the Federal Reserve has come off as hawkish in coming weeks, ahead of yesterday's interest rate hike given the ongoing strength in the labor market. | |
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