Monday, April 3, 2023

😎The End of the One Winning Tech Trend This Year?

Good morning. The past 15 months have been rough for tech investors. But this year, artificial...
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 past 15 months have been rough for tech investors. But this year, artificial intelligence (AI) companies have been a bright spot. However, there's now pushback against this technology's latest iteration.

Italy has banned OpenAI's ChatGPT program, citing privacy concerns. And a number of tech scientists – as well as billionaire Elon Musk – have signed a letter suggesting a six-month pause on further developments in the technology.

It's true that technology can lead to fast, disruptive changes. But over time, it's also true that humans have adapted to those changes successfully. It's likely that AI will be no different, but it may be time to hold back on investing in the AI space given the rising backlash.

Now here's the rest of the news:

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  • $1.07 million in 9 months (2020)
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MARKETS
DOW 33,273.10 +1.26%
S&P 4,108.93 +1.43%
NASDAQ 12,221.91 +1.74%
*As of market close
Markets continued higher on Friday, closing out the first quarter on a strong note.
Oil rose 1.6 percent, last going for $75.52 per barrel.
Gold dipped 0.5 percent, ending at $1,988 per ounce.
Cryptocurrencies traded higher, with bitcoin at $28,470 at the stock market close.

Today's TOP TIPS
Follow Cyclical Stocks Starting an Upswing
Some companies tend to be growth plays. Others can be steady. A few are more cyclical, having obvious booms and busts. Tech companies that fall out of favor can become cyclical companies, provided they manage to find new products to invest in to get back on the growth track, even if it's just for a few years.

Playing this cycle can lead to bigger returns than buying and holding, particularly if buying near the start of a new cycle higher.

» FULL STORY

Insider Trading Report: Genuine Parts Co. (GPC)
Paul Donahue, CEO at Genuine Parts Company (GPC), recently bought 1,600 shares. The buy increased his holdings by 1 percent, and came to a total cost of $249,728.

This is the first buy at the company in over a year. Last year, one director bought over 1,600 shares, paying just over $200,000, on two separate occasions. Over the past two years, there has been only one insider sale.

» FULL STORY

Unusual Options Activity: Alamos Gold (AGI)
Precious metals producer Alamos Gold (AGI) has fared well over the past year, with a 44 percent gain. One trader sees a further rally in the months ahead.

That's based on the June $17.50 calls. With 74 days until expiration, 10,512 contracts traded compared to a prior open interest of 159, for a 66-fold rise in volume on the trade. The buyer of the calls paid $0.10 to make the bullish bet.

» FULL STORY

IN OTHER NEWS
Core PCE Rises Slower than Expected

Personal consumption expenditures rose 0.3 percent in February, at a slower rate than expectations for a 0.4 percent rise. Overall, the PCE rose 4.6 percent compared to a year before, down from January's annualized rise of 4.7 percent. This is a sign that inflation continues to cool off, albeit at a slow rate.
European Inflation Slows

Prices in the 20 countries comprising the Eurozone rose 6.9 percent in the prior 12 months. That's a slowdown from the 8.5 percent rise from February 2022 to February 2023. A 0.9 percent year-over-year drop in energy prices helped fuel the move lower, but still show some rising prices, such as food.
Norfolk Southern Faces EPA and Justice Department Suit Over Train Derailment

A complaint has been filed by the EPA and the Justice Department against Norfolk Southern (NSC). The complaint alleges that the company's train derailment in East Palestine, Ohio in February was a violation of the Clean Water Act. The complaint is on top of a number of negligence suits already filed.
EV Tax Credits Face New Rules

The Treasury Department has set a series of new rules for electric vehicle tax credits, which will kick in on April 18. The rules provide a tax credit of $3,750 for an EV depending on its use of critical minerals and battery components. The rules came about via last year's Inflation Reduction Act, to further encourage the expansion of EVs.
Canoo Settles With SEC For $1.5 Million

EV startup Canoo will settle a claim with the SEC for $1.5 million. The regulatory agency started investigating the company in May 2021, covering the company's merger with special purpose acquisition company (SPAC) Hennessy Capital. Several other EV-related companies faced SEC scrutiny for going public via SPAC in the past year.

S&P 500 MOVERS
TOP
ALGN  7.1%
TSLA  6.03%
NOW  5.564%
KMX 4.959%
CDAY 4.547%
BOTTOM
GNRC 4.613%
MU 3.701%
CMA 2.882%
BIDU 2.301%
VTR 2.255%

Quote of the Day
Collectively, financial markets are pricing in the best of both worlds – a recession that allows rates to be low and brings inflation down sharply, yet one that does not have a massively negative effect on corporate earnings.
- Ajay Rajadhyaksh, analyst at Barclays, on the market's reaction to a slowing economy and trouble in the banking system, and why it may be expecting a soft landing in the months ahead.

Sponsored Content
The Results Are In: Bryan Perry's "Million-Dollar Beta Test"
Beta Testers following Bryan's trading system had the opportunity to collect:
  • $1.07 million in 9 months (2020)
  • $1.04 million in 10 months (2021)
  • $1.17 million in 8 months (2022)
Click here to see how these extraordinary trading gains came to pass... and find out what Bryan has planned for 2023 – his fourth and final Beta Test.


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