Monday, October 10, 2022

🎅Prepare Now: We’re Getting a Rate Hike for the Holidays

Good morning. The Federal Reserve will raise interest rates another 0.75 percent after its...
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 Federal Reserve will raise interest rates another 0.75 percent after its November meeting. That's the feel of the market following Friday's jobs report, which saw unemployment tick down to 3.5 percent as job growth continues strong.

While the market will likely trend lower to price that in now, the real question is how much further there is to go. There have been some signs of strain in the credit markets. And rising interest rates will make financing things like the $31 trillion national debt far more expensive. Ultimately, relief won't happen until 2023, and even then, we'll likely see the Fed hold steady on rates rather than cut, even if the economy continues to slow.

That doesn't change the game plan. Look for value opportunities to start gradually buying now. And market volatility is likely to continue, offering great trades both long and short in this market environment.

Now here's the rest of the news:

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MARKETS
DOW 29,296.79 -2.11%
S&P 3,639.66 -2.80%
NASDAQ 10,652.40 -3.80%
*As of market close
Markets sank on Friday, following the latest jobs report.
Oil rose 4.6 percent, closing at $92.55 per barrel.
Gold dropped 1 percent, last going for about $1,702 per ounce.
Cryptocurrencies traded lower, with Bitcoin at $19,469 at the stock market close.

Today's TOP TIPS
Keep Investing in Trends Holding Up Now
Many sectors and stocks that soared in the recent bull market have been leading them lower as sentiment has shifted. However, some areas are holding up better than others, and are even thriving as they're well-suited to an inflationary environment.

While the energy sector has been one clear winner this year, companies involved in food production have fared well too, thanks to rising agricultural prices overall and concerns over supply chains.

» FULL STORY

Insider Trading Report: Redfin Corp (RDFN)
James Slavet, a director at Redfin Corp (RDFN), recently picked up 6,667 shares. The buy increased his holdings by 3.3 percent, and came to a total purchase price of just under $39,000.

This follows up on a 100,000 share buy from the director back in September. Other directors were buyers back in May, at a price about 50 percent higher than where shares trade today. Most executives have been sellers of shares in the past three years, although the selling has slowed this year.

» FULL STORY

Unusual Options Activity: QuantumScape Corporation (QS)
Shares of battery technology company QuantumScape Corporation (QS) are down nearly 60 percent over the past year. One trader sees further downside in shares over the coming months.

That's based on the January 2023 $9 puts. With 102 days until expiration, 11,148 contracts traded compared to a prior open interest of 176, for a 63-fold rise in volume on the trade. The buyer of the puts paid $1.67 to make the downside bet.

» FULL STORY

IN OTHER NEWS
Unemployment Drops to 3.5 Percent

263,000 jobs were added in the US in September, according to the latest Labor Department data. That's a slight slowdown from the 315,000 jobs added in August. However, it's still enough job growth to send the unemployment rate down to 3.5 percent, and a sign that the Fed will continue to raise interest rates to slow the economy.
Siegel Warns on Recession

Wharton professor Jeremey Siegel has warned that the Fed is raising interest rates too quickly, which could lead to a recession. He views that as a bigger problem for the economy than inflation itself, and that the Fed should be near the end of its rate hike cycle, as inflation is likely to come down from here.
Tyson Foods Announces Move to Arkansas

Tyson Foods (TSN) is planning on closing its headquarters in Chicago, with a move to Arkansas. Roughly 1,000 employees in three offices will be relocated. Tyson is the latest big company to close its offices in Chicago, including Boeing (BA) and Caterpillar (CAT), citing high crime among other challenges.
$100 Million Stolen Off of Binance in Blockchain Hack

Cryptocurrency exchange Binance reported that about $100 million was stolen off of the platform due to a hack on the Binance Smart Chain blockchain network. The network allows the transfer of digital assets and other information between independent blockchains.
Visa Expands FTX-Linked Debit Cards

Credit card provider Visa (V) is expanding its partnership with cryptocurrency exchange FTX, by increasing FTX-branded debit cards. Currently, over 65 platforms and exchanges have partnered with Visa to offer crypto-related debit cards.

S&P 500 MOVERS
TOP
DXCM 7.384%
PCG 2.085%
HAL 2.046%
MKC 1.929%
LHX 1.751%
BOTTOM
AMD 13.994%
CVS 10.428%
GNRC 8.463%
MPWR 8.233%
NVDA 7.957%

Quote of the Day
With inflation running well above our 2 percent longer-run goal, restoring price stability likely will require ongoing rate hikes and then keeping policy restrictive for some time until we are confident that inflation is firmly on the path toward our 2 percent goal. At some point, as we continue to tighten monetary policy, it will become appropriate to slow the pace of increases while we assess the effects of our cumulative tightening on the economy and inflation. In any case, the path of policy should depend on how quickly we make progress toward our inflation goal.
- Lisa Cook, Federal Reserve governor, on why the central bank needs to continue to raise interest rates to bring inflation down towards a goal of 2 percent.

Sponsored Content
$2 Coin could explode in Crypto's 3rd Shock Wave
If you're worried about market volatility, pay close attention and click here.

Because while most people are panicking right now… multi-millionaire crypto analyst Joe Shew is convinced this is a rare chance for regular people to cash in on a small $2 coin set to soar as crypto's 3rd shock wave takes place as soon as this month.

After picking Bitcoin at $369... and Ethereum at $7... this is a must watch broadcast.

Click here to see details on the move he's telling everyone to make.


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