Trading Tips Newsletter Good morning. Investors and traders alike have largely been focused on the moves being made by...
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 32,147.76 | -1.55% | | | | S&P 3,759.69 | -2.50% | | | | NASDAQ 10,524.80 | -3.36% | | | | *As of market close | | • | Stocks dropped on Wednesday, as the Fed indicated it wasn't done raising interest rates. | | • | Oil rallied 1.0 percent, closing at $89.28 per barrel. | | • | Gold dipped 0.6 percent, last going for about $1,640 per ounce. | | • | Cryptocurrencies traded lower, with Bitcoin at $20,274 at the stock market close. | | | | | | | | | | It's a Value Buyer's Market | | | | Price and value aren't the same thing. A low-priced stock could be wildly overvalued relative to the business' prospects. And a high-priced stock could still be pennies on the dollar for a great company ahead of a growth kick. In today's market, the fast drop in price, combined with fear and uncertainty, are creating a number of values for long term investors today… even in once high-flying sectors like tech. » FULL STORY | | | | | | Insider Trading Report: Allegion PLC (ALLE) | | | | John Stone, President and CEO at Allegion PLC (ALLE), recently picked up 12,500 shares. The buy increased his holdings by 24 percent, and came to a total cost just over $1.03 million. This marks the first insider buy at the company in over three years. Otherwise, company insiders, nearly all executives, have been sellers of shares over the past three years. That includes sales from the former company President and CEO. » FULL STORY | | | | | | Unusual Options Activity: Meta Platforms (META) | | | | Shares of social media company Meta Platforms (META) sank to a new 52-week low after earnings last week. One trader sees a further decline over the next year. That's based on the January 2024 $25 put. With 442 days until expiration, 2,291 contracts traded compared to a prior open interest of 162, for a 14-fold rise in volume on the trade. The buyer of the puts paid $0.59 to make the trade.
» FULL STORY | | | | | | • | Payrolls Rose in October
Private companies added 239,000 jobs in October. That's higher than September's total, and is higher than the 195,000 expected jobs, based on the latest ADP report. Most gains came from the leisure and hospitality industry, and wage overall are 7.7 percent higher compared to a year ago. | | | | • | Summers Encourages More Rate Hikes
Former Treasury Secretary Larry Summers sees a bigger risk to the economy if rate hikes stop before inflation is halted. That's in contrast to a number of growing voices encouraging the central bank to pause its rate hike policy following its historically aggressive moves this year. | | | | • | CVS And Walgreens Settle Opioid Lawsuits for Over $10 Billion
Drugstore chains CVS (CVS) and Walgreens (WBA) are settling all lawsuits related to the opioid crisis. The chains will make payments totaling over $10 billion to states, cities, and tribes that sued the companies on the grounds that they helped extend the opioid crisis. | | | | • | Crypto Holders May Consider a Quick Sale and Repurchase
Most assets have a "wash rule," which prevents someone from selling an asset at a loss and immediately buying it back. But the crypto space has no such rule. Those holding cryptos this year have seen big losses. Those could be captured for a year-end tax break, and immediately bought back. | | | | • | Digital Family Office Platform Raises $90 Million
Arta Finance, a startup working to provide family office services to individuals, has raised over $90 million in Series A funding. The company, started by a former product lead at Google (GOOG) raised capital in part from Google co-founder Eric Schmidt. | | | | | | TOP | | CRL | 5.495% | | | MTCH | 4.305% | | | BA | 3.599% | | | DD | 3.595% | | | CVS | 2.822% | | | BOTTOM | | RXO | 15.923% | | | DVN | 13.066% | | | PARA | 12.285% | | | EXR | 10.36% | | | CHRW | 9.986% | | | | | | | | | Any time you get good news, the market doesn't like it because it just means that the Fed is probably going to be tightening more and potentially for longer. We're still in the bad news is good news cycle. | | - Randy Frederick, director of trading at the Schwab Center for Financial Research, echoing a theme we've often repeated about the market's bizarre reaction to seemingly good news – and vice versa. | | |
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