Good morning. The past week has proven volatile amid the two largest bank failures since 2008...
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 32,246.55 | +1.17% | | | | S&P 3,960.28 | +1.76% | | | | NASDAQ 11,717.28 | +2.48% | | | | *As of market close | | • | Markets jumped higher on Thursday, as banking giants moved to stabilize troubled regional banks. | | • | Oil rose 0.8 percent, last going for $68.17 per barrel. | | • | Gold dipped 0.4 percent, ending at $1,924 per ounce. | | • | Cryptocurrencies trended higher, with bitcoin at $25,026 at the stock market close. | | | | | | | | | | Stick With Strong, Accessible Brands in a Slowing Economy | | | | Investors are more than willing to place trades outside their comfort zone in a bull market. But in a slowing economy, they tend to gravitate towards the tried and true. That explains the relative outperformance of value stocks in a flat or sideways market. Investors do the same thing as consumers. They cut back on new products and services, and stick with what's tried and true. That's why there are so many brands out there – including those at a reasonable price. » FULL STORY | | | | | | Insider Trading Report: Charles Schwab (SCHW) | | | | Walter Bettinger, CEO at Charles Schwab (SCHW), recently bought 50,000 shares. The buy increased his holdings by 8 percent, and came to a total cost of $2.965 million. He was joined by a number of other company officers and directors. The company's CFO bought 5,000 shares, at a cost of just under $297,000. One director bought 10,000 shares, paying just under $568,000. The buys come just a few weeks after the last insider sales at the company. » FULL STORY | | | | | | Unusual Options Activity: United Airlines Holdings (UAL) | | | | Airliner United Airlines Holdings (UAL) has held up well over the past year, with a 12 percent gain amid the market's overall 10 percent drop. One trader sees that outperformance continuing in the months ahead. That's based on the January 2025 $45 calls. With 672 days until expiration, 5,497 contracts traded compared to a prior open interest of 143, for a 38-fold rise in volume on the trade. The buyer of the calls paid $11.13 to make the bullish bet.
» FULL STORY | | | | | | • | European Central Bank Surprises with Rate Hikes
The European Central Bank raised interest rates by 50 basis points, or half a percent, yesterday. The bank cited the ongoing need to keep inflation in check as the major threat to the economy. Traders had speculated in recent days that the bank would slow or pause its rate hikes, as large institutions such as Credit Suisse (CS) were in need of liquidity support. | | | | • | Students Move Towards Apprenticeship Programs
An increasing number of students are moving away from college and towards apprenticeship programs. That includes both blue-collar and white-collar jobs. Apprenticeship programs for white collar work may involve a two-year degree rather than a four-year one, which significantly lowers student loan debts and can even pay students as they go. | | | | • | Retailers Prepare for a Recession
Retailers from big box stores to grocery chains are expecting the economy to continue to slow, based on statements from their most recent earnings report. The plan is to stock up on high frequency inventory, and to become more strategic about discounts in general, while also looking for ways to reward customers for their loyalty. | | | | • | Apple Experimenting with AI Tool
Consumer tech giant Apple (AAPL) recently held an internal event focusing on AI and large language models. Many teams are working on creating a service that would be tied to its voice assistant, Siri. The move comes amid a surge of interest in AI, with other big tech companies working on their own version or in a partnership with services such as ChatGPT. | | | | • | White House Tells ByteDance to Sell TikTok
The Biden administration is telling tech firm ByteDance to sell the U.S. arm of its social media platform TikTok, or face a potential ban. This comes as bipartisan legislation has been announced that would set new rules for foreign tech firms to cut down on data collection and spying in the U.S. | | | | | | TOP | | FRC | 12.484% | | | AMD | 7.137% | | | ADBE | 6.139% | | | INTC | 6.019% | | | ANET | 5.767% | | | BOTTOM | | SEDG | 6.408% | | | NWL | 3.524% | | | BXP | 3.313% | | | LUMN | 3.282% | | | DISH | 3.087% | | | | | | | | | We're seeing the bank turmoil that started in Silicon Valley, it's really spreading across the globe. the markets are realizing that you're seeing the banks are in trouble because a lot of their profitability models have been based on, for the most part, zero-interest rates. | | - Edward Moya, senior market analyst at Oanda, on the move lower in bank stocks, which has expanded internationally in recent days. | | |
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