Friday, December 16, 2022

🎿Gliding Towards a Hard Landing

Good morning. The Federal Reserve raised interest rates 0.5 percent on Wednesday, as expected...
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 raised interest rates 0.5 percent on Wednesday, as expected. That was already priced into the market. What's caused the drop in stocks over the past two days has come from beyond the headline data.

Investors are now confronted with interest rates being higher for longer. The Fed now sees a higher terminal rate than during its November meeting. And by slowing the rate of interest rate hikes from here, it will take longer for that story to play out.

For traders, that's a sign that markets will remain volatile – and that the current downtrend is likely intact. We may get a modest year-end rally, but could still see the market trend lower in the first quarter of 2023.

Now here's the rest of the news:

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MARKETS
DOW 33,202.22 -2.25%
S&P 3,895.75 -2.49%
NASDAQ 10,810.53 -3.23%
*As of market close
Stocks closed lower on Thursday, following weak retail sales data.
Oil dipped 1.5 percent, closing at $76.11 per barrel.
Gold slid 1.8 percent, hitting $1,787 per ounce.
Cryptocurrencies traded lower, with Bitcoin going for $17,427 at the market close.

Today's TOP TIPS
This Tech Industry Leader Offers High Appreciation Potential and a High Dividend
Investors often see a trade-off between high growth opportunities and income. However, in a market selloff, growth names can go on sale. And when they do, any dividend that they may be paying can become much larger than average.

Striking a balance between the two involves looking at where some of the best bargains lie under current market conditions. But investors looking for growth and income have a growing number of opportunities right now.

» FULL STORY

Insider Trading Report: FreightCar America (RAIL)
Matthew Tonn, Chief Commercial Officer at FreightCar America (RAIL), recently picked up 5,700 shares. The buy increased his holdings by 3.5 percent, and came to a total cost just over $20,000.

This is the first insider activity at the company since June, following a 2,550 share pickup from the company CEO. Going back over the past 3 years, executives, directors, and major owners have all been buying up shares, with no insider sales.

» FULL STORY

Unusual Options Activity: GameStop (GME)
Shares of video game retailer GameStop (GME) are down nearly 45 percent in the past year, nearly triple the amount the S&P 500 has declined. One trader sees a further decline in the coming months.

That's based on the March $21 puts. With 90 days until expiration, 7,230 contracts traded compared to a prior open interest of 103, for a 70-fold rise in volume on the trade. The buyer of the puts paid $4.58 to get in.

» FULL STORY

IN OTHER NEWS
Consumer Spending Drops in November

Retail sales in the US dropped 0.6 percent in November, according to the latest data. The biggest contributor to the decline was auto sales. Excluding that component, sales were still down 0.2 percent, a reversal of October's 1.3 percent increase.
US Auditors Get Access to Chinese Company Records

US auditors have been given access to auditing disclosures by Chinese-based companies. That will prevent Chinese-based companies listed on US exchanges from being de-listed. There have been rising concerns over the lack of transparency from such companies, particularly as they haven't meet exchange requirements for audited data.
France Restarts Nuclear Reactors

France has resumed the operation of five nuclear reactors in the past week. Combined with a cut in electricity consumption, the country is now likely on track to avoid rolling blackouts this winter. The move comes against a broader energy crisis in Europe as supplies of natural gas from Russia have been curtailed.
Walmart CEO Warns on Inflation, Slower Consumer Spending Next Year

Doug McMillon, CEO of Walmart (WMT), sees inflation ongoing into the next year, as suppliers to the retailer are reporting that prices will remain higher in the near-term. The company is investing in supply chain technology to help reduce bottlenecks, but there may be a continued slowdown in consumer spending next year.
Musk Sells $3.5 Billion in Tesla

Elon Musk has sold another $3.5 billion in Tesla Motors (TSLA) shares, amounting to over 20 million in stock. That follows up on a $4 billion sale in the past month. The CEO has yet to comment on a reason for the current sale. Musk still owns about $66 billion worth of shares.

S&P 500 MOVERS
TOP
LEN  3.733%
DHI  3.364%
NDSN 2.878%
CTRA 2.854%
ALGN 2.58%
BOTTOM
WDC 9.643%
WBD 9.199%
NUE 8.927%
NFLX 8.826%
PARA 8.265%

Quote of the Day
The big issue that makes it hawkish is that the Fed's forecasts put the terminal rate at 5.1% for 2023 from 4.6% at the September meeting. There's no tip of the hat to the notion that [the pace of] inflation is starting to decline. They just completely ignored it.
- Jim Caron of Morgan Stanley Investment Management, on why Wednesday's widely anticipated 0.50 percent rate hike by the Fed was disliked by the market, as the central bank didn't mention the recent decline in year-over-year inflation rates.

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Cash you can enjoy life, or re-invest to rapidly grow you income payouts. And, the best thig is, I've put all the details in a new Special Report you can download absolutely FREE.

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

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