Tuesday, November 1, 2022

🔽Assets Are Heading Down, But Inflation’s Not Out

Trading Tips Newsletter
A mansion in Philadelphia just sold for $9.26 million. That's after the home was first listed for...
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. A mansion in Philadelphia just sold for $9.26 million. That's after the home was first listed for $28 million in 2016. And after the home failed to meet a $14 million reserve at auction in 2019. The home cost a full $35 million to be build in the first place – resulting in a $25.7 million drop.

Sure, it's easy to see this simply as a pain for the ultra-wealthy developer in the first place. Yet it's also a sign that affluent investors are waiting for prices to come down to bargain prices after being run up over the past few years. So while we're still dealing with inflation thanks to high prices for everyday goods with high demand like food and energy, other assets are showing that prices are coming down elsewhere.

Traders should continue to treat this market cautiously, and look for downside opportunities as interest rates continue on a path to rise.

Now here's the rest of the news:

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MARKETS
DOW 32,732.95 -0.39%
S&P 3,871.98 -0.75%
NASDAQ 10,988.15 -1.03%
*As of market close
Stocks moved lower on Monday, ahead of a data heavy week.
Oil dipped 2.2 percent, closing at $86.00 per barrel.
Gold slid 0.6 percent, last going for about $1,635 per ounce.
Cryptocurrencies generally dropped, with Bitcoin at $20,384 at the stock market close.

Today's TOP TIPS
Buy Volatile Stocks When They Take a Dive
Some stocks deliver slow and steady returns over time that can compound out into a phenomenal profit. Others can be volatile – but that volatility allows investors to earn even more over time, provided they don't get scared out of a trade.

Right now, a number of companies have been taking big hits following earnings. And while it's scary, separating the companies likely to best rebound from this slowing economy will lead to big returns.

» FULL STORY

Insider Trading Report: Union Pacific Corp (UNP)
Teresa Finley, a director at Union Pacific Corp (UNP), recently added 1,380 shares. The buy represents an initial stake for the director, who paid just under $260,000 for the position.

This represents the first insider buy at the railroad since early 2020. Company insiders have been occasional sellers of shares over the past three years, with directors more likely to be buyers following a dip in price.

» FULL STORY

Unusual Options Activity: Star Bulk Carriers (SBLK)
Shares of marine shipping company Star Bulk Carriers (SBLK) are down about 14 percent in the past year, as shipping rates have started to come off extreme highs. One trader sees an even bigger drop for shares ahead.

That's based on the December 16th $16 puts. With 45 days until expiration, 6,761 contracts traded compared to a prior open interest of 102, for a 66-fold rise in volume on the trade. The buyer of the puts paid $1.60.

» FULL STORY

IN OTHER NEWS
Companies Reveal Worker Pay Ahead of Deadline

A number of companies are revealing the pay of workers in New York City, as a law taking effect there requires disclosure. The salary transparency law requires all job listing to include a pay range, and was passed in the hopes of closing gender pay gaps and other disparities.
Powerball Prize Rises to $1 Billion

The top prize for Powerball has topped $1 billion, as no players matched numbers during last week's $825 million estimated prize. The total is now the second-largest in history, behind the $1.586 billion jackpot won in 2018. The payout is based on a 29-year annuity payout, whereas a winner taking the cash payout would get just $497.3 million.
UK Cracks Down on Crypto

British lawmakers are moving towards bringing regulatory scrutiny to the cryptocurrency space. The House of Commons accepted a draft Financial Services and Markets Bill that would extend regulations to crypto assets and services. The bill still needs further debate and votes in the House of Commons and Lords to pass.
General Motors Pauses Twitter Advertising

General Motors (GM) is pausing advertising on Twitter, following Elon Musk's purchase of the platform. GM states that they're evaluating a potential new direction for the social media platform, and that it will still use Twitter to interact with customers.
Musk Refutes Layoff Rumors

Twitter owner Elon Musk has refuted claims that arose over the weekend that he plans to lay off employees before November 1. That's when staff receive stock grants as part of their compensation. The company is already on the hook for nearly $200 million in payouts to executives who were laid off last week.

S&P 500 MOVERS
TOP
WYNN  10.738%
NOV  4.634%
FTI 4.519%
SLB 3.677%
CTRA 3.621%
BOTTOM
GPN 8.192%
NWL 7.243%
META 5.368%
HBI 5%
TTWO 3.919%

Quote of the Day
Inflation data really wasn't that bad. The earnings have been not great, but not awful. When you have that middle of the road, that helps equity markets.
- Megan Horneman, chief investment officer at Verdence, on why a mediocre earnings season so far combined with some year-over-year drops in inflation has been enough to take the stock market off of its oversold levels from the last month.

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These two stocks are a MUST in every income trader's portfolio.

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