Good morning. St. Louis Fed President Jim Bullard has been stating for weeks that the Fed's...
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 33,296.63 | -1.81% | | | | S&P 3,928.75 | -1.56% | | | | NASDAQ 10,957.01 | -1.24% | | | | *As of market close | | • | Markets traded lower on Wednesday, following a decline in retail sales. | | • | Oil dipped 1.2 percent, closing at $79.19 per barrel. | | • | Gold slid 0.2 percent, going for $1,906 per ounce. | | • | Cryptocurrencies trended lower, with Bitcoin at $20,749 at the market close. | | | | | | | | | | Target Cyclical Companies When They're Most Out of Favor | | | | Some traders look for pure growth. Or pure value. Others may look for companies capable of big swings, depending on where they are in their industry cycle. Those looking to target cyclical companies need to start buying when things look down and out, not when things are going well. By buying at the low point of the cycle, traders and investors alike can catch big swings in traditionally more stodgy companies – and even beat the market doing so. » FULL STORY | | | | | | Insider Trading Report: Akamai Technologies (AKAM) | | | | Thomson Leighton, CEO at Akamai Technologies (AKAM), recently added 282 shares. The buy increased the CEO's holdings by less than 1 percent, and came to a total price just over $25,000. The buy comes a week after the CEO bought 850 shares, paying just over $75,000 to do so. This follows on a pattern of buys going back to December. Over the past year, company insiders have largely been sellers of shares, including both officers and directors. » FULL STORY | | | | | | Unusual Options Activity: PulteGroup (PHM) | | | | Shares of residential construction company PulteGroup (PHM) are down 7 percent over the past year, about half as much as the S&P 500. One trader sees a further drop ahead for shares. That's based on the April $50 puts. With 91 days until expiration, 8,437 contracts traded compared to a prior open interest of 182, for a 46-fold rise in volume on the trade. The buyer of the puts paid $2.78 to make the downside bet.
» FULL STORY | | | | | | • | Producer Price Inflation Drops More than Expected
In the latest sign that inflation is slowing, producer price inflation dropped to a 6.2 percent year-over-year increase in December. That's a 0.9 percent drop compared to November's 7.3 percent read. The data also came in well under expectations for a 0.5 percent drop. | | | | • | Holiday Sales Come in Under Expectations
Holiday sales hit $936.3 billion for November and December, a year-over-year increase of 5.3 percent. That came in well under expectations for a 6-8 percent increase. And the data does not adjust for inflation, as higher prices can mean fewer total sales overall. The data suggests consumers will slow down in 2023. | | | | • | China's Population Declines for The First Time in 6 Decades
China reported that its population fell to 1.411 billion, down 850,000 compared to the previous year. That's the first decline since 1961, during a famine period. Demographic experts see the population trending down, and the country's birth rate continues to decline. | | | | • | Microsoft Announces 10,000 Job Cuts
Tech conglomerate Microsoft (MSFT) has announced that it will cut 10,000 jobs, or about 5 percent of its workforce. Microsoft has had some smaller layoffs in the last year, but this is the largest decline so far. The layoffs will run through the third quarter of the year, and will also allow the company to consolidate office spaces. | | | | • | Party City Files for Bankruptcy
Retailer Party City (PRTY) has filed for chapter 11 bankruptcy. The company is looking to pare down its debt load, and has struck an agreement with a group that holds the majority of its first lien notes to restructure the company's balance sheet. | | | | | | TOP | | JBHT | 4.64% | | | MRNA | 3.409% | | | STX | 3.159% | | | POOL | 2.18% | | | QCOM | 1.775% | | | BOTTOM | | KHC | 5.693% | | | PNC | 5.314% | | | KMX | 5.234% | | | UAL | 4.746% | | | ZION | 4.689% | | | | | | | | | The rally this year has been led by low quality and heavily shorted stocks. However, it's also witnessed a strong move in cyclical stocks relative to defensive ones. This move in particular is convincing investors they are missing something and must re-position. Truth be told, it has been a powerful shift, but we also recognize bear markets have a way of fooling everyone before they're done. We're not biting on this particular head fake/bear market rally because our work and process is so convincingly bearish, and we trust it. | | - Mike Wilson, chief U.S. equity strategist at Morgan Stanley, on why the market's latest rally higher may be part of a broader bear market, and why investors should be cautious as the year unfolds. | | |
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