Good morning. While the official inflation numbers suggest that prices are rising at nearly 9...
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 29,210.85 | -0.10% | | | | S&P 3,577.03 | -0.33% | | | | NASDAQ 10,417.10 | -0.09% | | | | *As of market close | | • | Markets traded lower on Wednesday, following a higher-than-expected PPI reading. | | • | Oil dropped 2.6 percent, closing at $87.06 per barrel. | | • | Gold dropped 0.2 percent, last going for about $1,682 per ounce. | | • | Cryptocurrencies traded mixed, with Bitcoin at $19,143 at the stock market close. | | | | | | | | | | Stick With Companies Looking Forward Amid the Current Economic Slowdown | | | | The market outlook is grim. Stocks continue to set new lows. Many companies are facing challenges. But a few are using this time of hardship to set themselves up for success when the economy turns around. While it can be challenging to look to the future when the present is fearful, growth must go on. And one sign of a great company is that it finds a new way to grow its business during a time of market fear when few want to make deals. » FULL STORY | | | | | | Insider Trading Report: Lazydays Holdings (LAZY) | | | | B. Riley Financial (RILY), a major holder of Lazydays Holdings (LAZY), recently added 191,203 shares. The buy increased the fund's stake by nearly 11 percent, and came to a total cost of just under $2.48 million.
This follows up on a 19,950 share buy from the fund in late September. And the fund has been a regular buyer of shares going back earlier in the year. Company executives have largely been sellers of shares, when the stock was trading at a far higher price. » FULL STORY | | | | | | Unusual Options Activity: AT&T (T) | | | | Shares of telecom company AT&T (T) are down about 22 percent over the past year and have been sliding to new 52-week lows in recent sessions. One trader sees a rebound for shares in the coming weeks. That's based on the November 18 $14 calls. With 36 days until expiration, 10,033 contracts traded compared to a prior open interest of 157, for a 64-fold rise in volume on the trade. The buyer of the calls paid $1.21 to make the bullish bet.
» FULL STORY | | | | | | • | Producer Prices Rise in September
The producer price index (PPI), rose 0.4 percent in September. The gain was higher than expected, and leaves a year-over-year PPI read of 8.5 percent. While down from 8.7 percent last month, it's still higher than expectation, and a sign that the Fed will likely continue raising interest rates. | | | | • | Biden Warns on "Consequences" For OPEC Production Cut
The Biden White House has stated that there will be "consequences" for Saudi Arabia for OPEC's recent decision to cut oil production by 2 million barrels per day. However, there are few options available to negate the cut, especially given the large sales from the strategic petroleum reserve. | | | | • | Chip Equipment Suppliers Halt Shipments to China
US suppliers of chipmaking equipment are pulling out staff at China's leading memory chipmaking facility. The move comes following a rising list of export restrictions on technology shipments to China as outlined by the Commerce Department. While the move has been made to prevent American technology from advancing Chinese military tech, it could also weigh on global chipmaking supplies. | | | | • | Subway Reports Record Sales
Sales at Subway locations rose 8.4 percent in the third quarter. And the privately-held company, which rarely discloses such information, states that it's hitting record sales across its 20,000 US locations. The company cites a rise in speedier service, an increase in digital orders, and new menu options for the turnaround. | | | | • | Toyota Warns on Exposed Personal Information
Toyota Motors (TM) reports that the personal information of roughly 300,000 customers may have been exposed for a period of nearly five years. The exposure may have occurred thanks to T-Connect, the Toyota app that connects a smartphone to a vehicle's dashboard system. The company believe no customer information other than email addresses and customer numbers would have been exposed. | | | | | | TOP | | NCLH | 11.78% | | | RCL | 11.637% | | | CCL | 10.015% | | | MRNA | 7.944% | | | VLO | 5.602% | | | BOTTOM | | ALB | 7.799% | | | TROW | 4.619% | | | ETR | 4.335% | | | NEE | 4.294% | | | LNT | 4.197% | | | | | | | | | This is an awful stock market environment that is grappling with a weakening economy, uncertainty over earnings and how long the Fed's tightening will last, and sentiment issues with an extremely risk averse investor psychology. We believe the Fed will raise interest rates one or two more times until the Fed funds rate reaches 4% and then take a pause, at which point the Fed will assess the damage done. | | - David Bahnsen, chief investment officer of The Bahnsen Group, on why the stock market environment still looks poor going into the year, and why markets will likely continue to trade downward until the Federal Reserve stops raising interest rates. | | |
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