Friday, December 23, 2022

😊Here’s How Congress Just Made It (Slightly) Easier for Investors

Good morning. The government is on the cusp of passing a $1.7 trillion omnibus spending bill...
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 government is on the cusp of passing a $1.7 trillion omnibus spending bill. Buried with the usual pork spending and billions more for Ukraine, there are a few scraps that have been doled out to investors.

That includes a higher age before mandatory withdrawals kick in, rising from 70 ½ years now to the age of 72. And there are provisions to help those student loan payments earn what they need for retirement.

Overall, these are small changes, and likely won't improve things too much for investors. That still leaves investors with the need to build their wealth with astute trading to get ahead.

Now here's the rest of the news:

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MARKETS
DOW 33,027.49 -1.05%
S&P 3,822.39 -1.45%
NASDAQ 10,476.12 -2.18%
*As of market close
Stocks sank on Thursday, with the Nasdaq nearing its 2022 low.
Oil dipped 0.2 percent, closing at $78.15 per barrel.
Gold slid 1.4 percent, at $1,800 per ounce.
Cryptocurrencies traded flat, with Bitcoin going for $16,792 at the market close.

Today's TOP TIPS
Buy Shares of Companies Looking at Long-Term Profitable Returns Now
In a rough market, even great companies will miss on earnings. But how they miss can be illustrative of their potential future returns. For instance, with inflation data coming down, companies dealing with high costs could see that factor fade away.

With Wall Street looking at each quarter's numbers compared to the year before, declining costs could lead to a big move higher for any company with something positive to report.

» FULL STORY

Insider Trading Report: Flowers Foods (FLO)
Chubb Caldecot, a director at Flowers Foods (FLO), recently added 2,000 shares. The buy increased his holdings by 8.7 percent, and came to a total cost just under $57,000.

This is the first insider buy since the director last bought shares in August, picking up 3,000 shares for just over $82,000. Over the past year, there have been a number of large insider sales, including a 75,400 share sale by the company CEO.

» FULL STORY

Unusual Options Activity: BlackBerry (BB)
Shares of wireless communications equipment company BlackBerry (BB) have shed more than half their value in the last year amid a big drop in tech stocks. One trader sees a further decline.

That's based on the June $4.00 puts. With 174 days until expiration, 4,255 contracts traded compared to a prior open interest of 151, for a 28-fold rise in volume on the trade. The buyer of the puts paid $0.82 to make the bet.

» FULL STORY

IN OTHER NEWS
IPOs on Track for Worst Year Since 1990

A total of 37 companies have made their initial public offering in 2022. Overall, these firms have raised $7 billion. That's the lowest amount since 1990, when companies going public raised just $4.3 billion. The slowdown has occurred against a backdrop of declining stocks, and rising interest rates, which impact a company's ability to take on debt as well.
Flight Cancellations Disrupt Holiday Travel

Over 1,200 flights were cancelled on Thursday, amid inclement weather across the United States. Over 700 flights were already cancelled for Friday. The cancellations have occurred as "bomb cyclone" conditions have impacted one-third of the US population.
Egg Prices Hit Record Highs

An outbreak of bird flu has tightened egg supplies. That's led to rising prices, adding to earlier gains this year. Among grocery staples, eggs have been the biggest riser this year, with a jump of over 30 percent. Egg prices averaged $5.36 per dozen in December.
Micron Announces Layoffs

Semiconductor manufacturer Micron (MU) has announced staff reductions of approximately 10 percent of employees over 2023. That's a loss of up to 4,800. They're the latest tech company to report on layoffs. The company is also suspending bonuses.
Netflix to Expand into Fitness Content

Streaming company Netflix (NFLX) is expanding its offerings into fitness content. The company will create about 30 hours of exercise sessions, by streaming the Nike (NKE) Training Club classes. The classes offer options across a variety of fitness activities.

S&P 500 MOVERS
TOP
FDX 3.353%
VFC  2.946%
WBD 2.102%
KR 1.777%
VNO 1.755%
BOTTOM
TSLA 8.883%
LRCX 8.654%
AMAT 7.838%
CCL 7.076%
NVDA 7.042%

Quote of the Day
That's a buying opportunity because then, as you go into the spring timeframe, you get some lessening of the Fed overhang, and on that alone, you begin to get some valuation relief. We're looking for a combination of defensive characteristics, where we can also benefit from the risk-on attribute. In our setup, it kind of dials you into the energy and industrials sectors.
- Scott Chronert, analyst at Citigroup, on why the market may have a slight further decline at the start of the year before a Fed pivot that causes a relief rally and sizeable move higher for stocks.

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