Good morning. It's a busy week for economic data. The most important will come out of the Fed...
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 31,019.68 | +0.64% | | | | S&P 3,899.89 | +0.69% | | | | NASDAQ 11,535.02 | +0.76% | | | | *As of market close | | • | Markets moved higher on Monday, surging higher in the afternoon. | | • | Oil traded flat, closing at $85.25 per barrel. | | • | Gold also traded flat, last going for about $1,683 per ounce. | | • | Cryptocurrencies trended lower, with Bitcoin at $19,531 at the stock market close. | | | | | | | | | | It's Time to Consider This Old-School Inflation Hedge | | | | Inflation continues to eat away at consumer's purchasing power. And while it's blindsided some investors, it's also been tough to hedge right now. That's because conventional hedges haven't worked too well yet, as investors have gone through other alternatives first. However, gold is starting to look undervalued relative to other commodities. And it has a long history of holding up well compared to inflation, both expected and unexpected, over time. » FULL STORY | | | | | | Insider Trading Report: HomeTrust Bancshares (HTBI) | | | | Robert James, a director at HomeTrust Bancshares (HTBI), recently added 2,500 shares. The buy increased his holdings by nearly 22 percent, and came to a total cost of $57,025. That's the first insider buy at the company since mid-2020. Otherwise, insiders have been big sellers of shares over the past two years, with some major sales right as the stock market started to peak nearly a year ago. » FULL STORY | | | | | | Unusual Options Activity: Alcoa Corporation (AA) | | | | Shares of aluminum producer Alcoa Corporation (AA) are down about in-line with the S&P 500 over the past year. One trader is betting that the company will move far lower in the coming weeks. That's based on the November $25 puts. With 59 days until expiration, 8,617 contracts traded compared to a prior open interest of 166, for a 32-fold rise in volume on the trade. The buyer of the puts paid $0.32 to make the bet.
» FULL STORY | | | | | | • | Markets Brace for Fed Hike This Week
Traders have been pricing in a 0.75 percent interest rate hike this week when the Fed meets. Given some recent data showing inflation remaining hot, however, expectations have risen for a full-point increase. While there are arguments for both moves, the prospect for a "soft landing" in the economy appears to be narrowing. | | | | • | 10 Year Treasury Yield Hits 2011 Levels
The 10-year US Treasury now yields 3.51 percent. That's the highest level for the government bond since 2011. It's also a sign that traders expect a big rate hike from the Fed this week, and that the Fed is likely not yet done with its rate hikes at this time. The 2-year Treasury is also now yielding at its highest levels since 2007, and 3.93%. | | | | • | Potential Home Sellers Turning to Rentals
As mortgage rates rise, potential home sellers are instead looking to rent out their homes rather than sell. Thanks to the massive increases in rental rates in the past few years, most homes can provide cash flow to cover costs, and the home stays with a low-rate mortgage on it. | | | | • | Porsche Prepares for $75 Billion IPO
German car giant Volkswagen (VWAGY) is preparing to spin off its holdings in Porsche in an initial public offering. The valuation could be as high as $75 billion for the sports car brand, and rise up to $9.4 billion, with shares initially priced between $76.50 and $82.50 per share. This would mark the largest IPO in a slow year for companies going public. | | | | • | Tesla Increases EV Production
Tesla Motors (TSLA) is increasing its production at facilities in Texas and Shanghai. The move comes as other automakers have announced plans to increase production of EVs in the coming years, including EV versions of popular gas-powered models. Currently, Tesla sells 4 of the top 5 EV models in the US. | | | | | | TOP | | MOS | 5.632% | | | WRK | 5.491% | | | CF | 5.051% | | | IVZ | 4.972% | | | PKG | 4.794% | | | BOTTOM | | MRNA | 7.609% | | | MKTX | 5.28% | | | EW | 4.799% | | | AZO | 2.7% | | | GPN | 2.456% | | | | | | | | | There is a lot of nervousness about how the global economy can affect the U.S. economy now, while the U.S. economy is dealing with its own set of very serious issues. I think that dynamic is what people have woken up to. | | - Callie Cox, US investment analyst at eToro, on why slowing global economic conditions amid a slowdown in the US is causing traders to rethink their portfolio allocations. | | |
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