Good morning. Investors continue to expect the economy to weaken… and with it, bring down...
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 33,886.47 | -0.42% | | | | | S&P 4,137.64 | -0.21% | | | | | NASDAQ 12,123.47 | -0.35% | | | | | *As of market close | | | • | Stocks closed lower on Friday, even as many big banks reported strong first quarter earnings. | | | • | Oil rose 0.5 percent, closing at $82.60 per barrel. | | | • | Gold slid 1.7 percent, hitting $2,020 per ounce. | | | • | Cryptocurrencies traded mixed, with Bitcoin hitting $30,322 at the stock market close. | | | | | | | |
| | | Invest With Companies with the Ability to Follow Through | | | | Many things in life have a first-mover advantage. However, in investing, the first company to come to the marketplace with a product isn't always the winner. A company that follows up with a better product or a far lower price point can end up grabbing the most market share.
That's particularly true in the tech space. Today's successful tech companies prefer to either buy a company on its way to winning, or wait until they can overtake the early movers.
» FULL STORY | | | | |
| | Insider Trading Report: Donaldson Company (DCI) | | | | Christopher Hilger, a director at Donaldson Company (DCI), recently added 3,186 shares. The buy increased his holdings by 68 percent, and came to a total cost just under $200,000.
This marks the first insider buy at the company over the past two years. Generally, insiders have been sellers of shares after exercising stock options. There have been a few outright sales a well, including one from the company President for 4,500 shares back in January.
» FULL STORY | | | | |
| | Unusual Options Activity: Best Buy (BBY) | | | | Electronics retailer Best Buy (BBY) has been trending down in recent weeks. One trader sees shares continuing lower in the next two months.
That's based on the June $67.50 puts. With 60 days until expiration, 10,078 contracts traded compared to a prior open interest of 410, for a 25-fold rise in volume on the trade. The buyer of the puts paid $2.30 to make the bearish bet.
» FULL STORY | | | | |
| | • | Retail Sales Decline in March
Retail sales dropped 1 percent in March compared to February. The drop was larger than expected, as economists expected a 0.4 percent decrease. The drop suggests that moves to raise interest rates and slow the economy down are paying off, and further declines are expected in the months ahead. | | | | • | Bank Earnings Strong Amid Weakening Economy
A number of major Wall Street banks reported earnings last week. Overall, these companies with earnings, with JPMorgan Chase (JPM) recording record sales. It's likely that returns will slow in the second quarter, as the full impact of recent banking system issues become fully known. | | | | • | Corporate Borrowing Increases as Bond Yields Trend Lower
Lower volatility in the bond market, particularly U.S. government bonds, have fueled a rebound in corporate borrowing in recent weeks. Generally, borrowing all but stopped in the immediate aftermath of Silicon Valley Bank's collapse in early March. Bond yields have been dropping a bit, reflecting the potential for a further slowdown in growth. | | | | • | Burger King Shows Signs of a Turnaround
Restaurant Brands International (QSR), owner of Burger King, is reporting that efforts to turn sales around are working, with the company selling more Whoppers than ever before, as well as a rise in consumer satisfaction. The company has been revamping its restaurants and increasing its advertising as part of the move. | | | | • | California Looking to Compel Tesla to Comply with Racial Bias Investigation
The California Civil Rights Department (CRD) is looking to obtain a court order to compel Tesla Motors (TSLA) regarding complaints about racial discrimination at the company's workplace. That's on top of several other lawsuits alleging harassment at the company's California factories. | | |
| | | | TOP | | | JPM | 7.222% | | | | C | 4.937% | | | | BAC | 3.379% | | | | VFC | 2.933% | | | | BLK | 2.924% | | | | BOTTOM | | | CTLT | 26.599% | | | | DISH | 6.415% | | | | BA | 5.698% | | | | PSA | 4.919% | | | | STE | 4.679% | | | | |
| | |  | | Markets might be getting a little too ahead of themselves, as far as optimistic, that the Fed will be able to cut when the markets are pricing that in. I don't think the Fed's going to be able to do that. I think the Fed's going to have to stay on hold for longer than people anticipate, and then maybe rate cuts next year, but I think they're going to have to stay on hold because we still are in a very sticky inflation environment. | | - Megan Horneman, analyst at Verdence Capital Advisors, on the market's strong move higher over the past few weeks, and why inflation may continue to stay higher than expected, even as the annual rate of inflation has dropped to 5 percent. | |
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