Monday, December 5, 2022

🙃Have You Seen These 2.7 Million Workers?

Good morning. We're going to need a lot of milk cartons. While the latest jobs report on Friday...
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. We're going to need a lot of milk cartons. While the latest jobs report on Friday reported a great headline number, with unemployment still at 3.7 percent, there's only increasing trouble behind the headlines. First, there's been massive growth in part-time jobs. But full-time job openings have plummeted.

And there's a growing divergence between the government's Household and Establishment surveys… now reaching a gap of 2.7 million workers. With the massive number of layoffs in big tech in recent weeks, it's possible that the most recent jobs numbers are based not just on real jobs, but on jobs entered onto some government spreadsheet.

In any event, caution is still the name of the game. Layoffs are rising. Interest rates are still going up. And the economy is still growing slowly. So don't expect a new bull market, and look for some downside trades that can profit from another swing lower in the market.

Now here's the rest of the news:

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MARKETS
DOW 34,429.88 +0.10%
S&P 4,071.70 -0.12%
NASDAQ 11,463.78 -0.18%
*As of market close
Stocks traded mixed on Friday, following the latest jobs report.
Oil dropped 1.2 percent, closing at $80.23 per barrel.
Gold dipped 0.1 percent, hitting $1,813 per ounce.
Cryptocurrencies traded mixed, with Bitcoin last going for $17,017 at the stock market close.

Today's TOP TIPS
This Proven Strategy Will Keep Investors in the Game For 2023
Some traders are betting the worst is over for markets. That's based on the view that the Fed will start tapering its interest rate hikes. But as long as interest rates are being hiked, they'll continue to weigh on stocks.

For investors who don't want to get whipsawed while this plays out, there are a number of investment strategies to focus on instead. The simplest and arguably best is simply to buy and hold dividend-paying stocks in industry-leading companies.

» FULL STORY

Insider Trading Report: The Howard Hughes Corporation (HHC)
Pershing Square Capital Management, a major holder at The Howard Hughes Company (HHC), recently added another 1,560,205 shares. The buy increased the fund's stake by just over $109 million, an increase of 11 percent.

The fund was also the last buyer of shares, picking up about 150,000 shares back in September 2021. Back then, they paid about $13.8 million for a position that's now down nearly 20 percent. Other company insiders have been fairly quiet this year.

» FULL STORY

Unusual Options Activity: AGNC Investment Corp (AGNC)
Shares of mortgage REIT AGNC Investment Corp (AGNC) have slid 35 percent over the past year. One trader sees a further decline in the months ahead.

That's based on the June 2023 $7.00 put. With 192 days until expiration, 32,159 contracts traded compared to a prior open interest of 358, for a 90-fold rise in volume on the trade. The buyer of the puts paid $0.26 to make the bet.

» FULL STORY

IN OTHER NEWS
Jobs Growth Higher Than Expected for November

The latest Labor Department data shows that the economy added 263,000 jobs in November. That number came in higher than economic expectations. The data also shows that wages continue to rise as well, a sign that the labor market remains strong. The unemployment rate has held steady at 3.7 percent.
DOJ Looks for Independent Probe into FTX Bankruptcy

The US Department of Justice is looking to create an independent review into the bankruptcy of cryptocurrency brokerage firm FTX. An independent examiner would be able to investigate and collect evidence on the company's activities before its implosion last month.
Chinese Solar Manufacturers Dodged US Tariffs

A probe conducted by the US Commerce Department has determined that four Chinese manufacturers of solar-cells worked to circumvent tariffs by routing their operations elsewhere in Asia first. The results of the probe are likely to further set back Chinese imports, which may lead to a cutback in solar projects given the lack of alternative suppliers.
Tesla Delivers First Electric Semi Trucks

Tesla Motors (TSLA) has made deliveries on the first of its Semi trucks to customers. The delivery has occurred five years after the first prototype was shown, and three years after production was first scheduled to begin. The trucks have a range of 500 miles between charges.
Stripe Adds Crypto Onramp Feature

Privately-held payment systems company Stripe has added a feature that will make it easier for users to exchange fiat money into cryptocurrencies. The move should make it easier to use non-custodial wallets for payment purposes, and to acquire crypto without having to first work through a centralized crypto exchange.

S&P 500 MOVERS
TOP
ENPH  6.858%
JD  5.658%
BIDU 4.96%
SEDG 4.676%
NTES 4.366%
BOTTOM
PYPL 4.533%
ZM  3.577%
VLO 3.344%
ANET 3.241%
EQT 3.239%

Quote of the Day
The PCE numbers confirmed that it's a tale of two inflations. Service inflation continues to accelerate while goods prices are softening, particularly in pandemic hotbed areas like home furnishings and autos. Powell's comments yesterday reconfirmed that the Fed is intent on tackling service elements of inflation, which offered reassurance to investors and sent equity markets higher. If the Fed achieves its goal of a soft landing, the Santa Claus rally that's forming may evolve into a full-scale bull market in 2023.
- Peter Essele, head of portfolio management for Commonwealth Financial Network, on the latest inflation data showing that services inflation continues to remain high, even as overall consumer inflation has started to show a meaningful year-over-year decline.

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