 | | |  Good morning. While the past two weeks have brought uncertainty and crisis to the financial sector, things appeared to have calmed down. After the winddown of Silvergate, and the regulatory closure of Silicon Valley Bank and Signature Bank, we haven't had a new failure in over a week.
However, smaller banks are losing depositors hand over fist, as that money is moving to the big banks, which have the perception of being too big to fail. While it's true that these banks could fail, the view is that the government would step in with any necessary taxpayer money to avoid that outcome. The smaller banks, however, aren't a systemic risk… so there may be more failures in the months ahead.
That's a sign that the dust hasn't settled yet for the community and regional banks. And that investors may be enticed by the big daily moves… but there could be more downside ahead, and even a few banks that go totally under. For now, investors should stick with the bigger banks.
Now here's the rest of the news: | | | | | | | | Did We Learn a Lesson from the Last Stock Market Crash? | | |  | | Those in the markets learned an important lesson in 2020: what goes down, must come up.
But how do you know when the floor hits and the bounce begins?
Wouldn't you want to be in at that inception point?
There's one way to know and it's not gurus, not headlines, it's not your brother-in-law spouting his theories on the markets.
Join us in our FREE, Live A.I. Market Training to learn how. | |
| | |  | DOW 32,105.25 | +0.23% | | | | | S&P 3,948.72 | +0.30% | | | | | NASDAQ 11,787.40 | +1.01% | | | | | *As of market close | | | • | Markets rebounded on Thursday, reversing some of Wednesday's losses. | | | • | Oil dropped 2.2 percent, last going for $69.36 per barrel. | | | • | Gold jumped 2.5 percent, ending at $1,998 per ounce. | | | • | Cryptocurrencies generally moved higher, with bitcoin at $28,328 at the stock market close. | | | | | | | |
| | | Invest With Companies Whose Executives Take Ownership | | | | With all the ups and downs of the stock market, it's sometimes easy to forget that a stock is an ownership stake in a company. And that shareholders, not company management, are the owners.
Some company management teams may use that to their advantage, by awarding themselves substantial amounts of stock options, which then dilute existing shareholders. However, other companies may encourage executives to buy shares outright, and take an ownership stake in the company that's also paying them a salary.
» FULL STORY | | | | |
| | Insider Trading Report: Liberty Media Corp (LSXMA) | | | | Gregory Maffei, President and CEO at Liberty Media Corp (LSXMA), recently bought 50,000 shares. The buy increased his holdings by 1 percent, and came to a total cost just over $1.33 million.
The buy was offset by the CEO's sale of shares that went through option exercise. Year-to-date, company insiders have mostly been sellers of shares, but last year saw a more even mix of buyers and sellers.
» FULL STORY | | | | |
| | Unusual Options Activity: Enerplus Corporation (ERF) | | | | Oil and gas exploration company Enerplus Corporation (ERF) has slid in recent weeks as oil prices have trended lower. One trader sees a further decline in the weeks ahead.
That's based on the April $14 puts. With 28 days until expiration, 2,723 contracts traded compared to a prior open interest of 113, for a 24-fold rise in volume on the trade. The buyer of the puts paid $0.58 to make the bearish bet.
» FULL STORY | | | | |
| | • | Bank of England Raises Interest Rates
Following in the footsteps of the Federal Reserve, the Bank of England raised interest rates by a quarter percent on Thursday. European Central Bank officials also committed to continue raising rates, indicating that central bankers are still more concerned with cutting inflation rather than avoiding stressing the banking system. | | | | • | Diesel Prices Hit One-Year Low
Prices for diesel fuel have hit a one-year low. Since most goods are shipped via truck at some point in the delivery process, this move will likely ease the rising costs of shipping, and may result in the dropping of fuel surcharges. However, it's also a sign that the real economy continues to slow. | | | | • | Evergrande Announces Debt Restructuring Deal
Chinese property development firm Evergrande Group has announced a multi-billion dollar restructuring plan. The company has reached binding agreements with international bondholders, who own about $23 billion in debt. The company collapsed in late 2021, creating China's worst property market crisis. | | | | • | Accenture To Lay Off 19,000 Workers
Technology consulting company Accenture (ACN) has announced plans to lay off 2.5 percent of its workforce. That amounts to about 19,000 workers. The company has also lowered its revenue and profit forecasts, adding to the list of tech companies announcing layoffs in recent months. | | | | • | Ford Lost $2 Billion On EVs in 2022
Ford Motors (F) reported that it lost $2.1 billion on its electric vehicle business in 2022, offering an early look at how legacy automakers are shifting to EVs. However, the company made $10 billion combined from its internal combustion vehicle sales as well as its fleet business. | | |
| | | | TOP | | | NFLX | 8.329% | | | | ACN | 7.044% | | | | REGN | 6.123% | | | | NTES | 5.448% | | | | MU | 5.432% | | | | BOTTOM | | | ZION | 9.993% | | | | CMA | 9.816% | | | | FRC | 7.128% | | | | KEY | 6.058% | | | | FDS | 5.842% | | | | |
| | |  | | The Fed's actions today are consistent with our long-held view that the Fed will raise rates to 5.125% and pause for an extended period. Barring an increase in contagion risk within the banking sector, we expect that the Fed will be faced with a very similar policy decision in May, and they will be compelled to deliver another hike. | | - Thomas Simons, economist at Jefferies, on the Fed's rate hike Wednesday, and why it may be either the last or second to last move higher in interest rates this cycle.  | |
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