Good morning. There's an old Wall Street saying, "Don't fight the Fed." And those going long...
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 33,420.77 | +1.24% | | | | S&P 4,158.77 | +1.19% | | | | NASDAQ 12,500.57 | +1.28% | | | | *As of market close | | • | Stocks shot higher on Wednesday, more than reversing Tuesday's drop. | | • | Oil jumped 2.7 percent, closing at $72.79 per barrel. | | • | Gold dropped 0.3 percent, ending the day at $1,987 per ounce. | | • | Cryptocurrencies generally rallied, with Bitcoin at $27,400 at the stock market close. | | | | | | | | | | Capital Is Flowing Into This Tech Niche | | | | While stocks have trended higher overall in the past few months, one part of the market has seen major interest from hedge funds and retail investors alike. That area? Artificial intelligence (AI). Companies that have been developing AI programs or otherwise moved towards servicing the growing tech niche have seen their share price rise. That's a trend likely to continue. And it may give conservative investors some big-cap names to target. » FULL STORY | | | | | | Insider Trading Report: Freeport-McMoRan (FCX) | | | | Sara Lewis, a director at Freeport-McMoRan (FCX) recently added 4,000 shares. The buy increased her holdings by 29 percent, and came to a total cost just under $139,600. That's the first insider buy at the copper producer since last August, when she and another director were buyers of shares in the high-$20 to low $30 range. Two company insiders sold shares when they popped over $40 in the intervening months. » FULL STORY | | | | | | Unusual Options Activity: Ford Motor Company (F) | | | | Automaker Ford Motor Company (F) has seen shares decline about 15 percent over the past year. One trader sees a further decline ahead. That's based on the June 9 $11 puts. With 21 days until expiration, 14,140 contracts traded compared to a prior open interest of 495, for a 29-fold rise in volume on the trade. The buyer of the puts paid $0.28 to make the bearish bet.
» FULL STORY | | | | | | • | Interest Rates Hit Two-Month High
Mortgage rates hit a two-month high, with 30-year fixed-rate mortgages rising to 6.57 percent from 6.48 percent. Applications also dropped 4.8 percent compared to the prior week, and refinancings dropped 8 percent as interest rates inched higher ahead of a potential debt ceiling default by the U.S. government. | | | | • | Wealthier Families Embrace Risk
Wealthier families are looking to invest in riskier and less liquid investments than stocks. As a group, the families with a net worth of $1 billion or more have about 44 percent of their wealth in alternatives such as hedge funds and real estate, with just 28 percent in stocks. The stock allocation is down from 31 percent in 2021. | | | | • | Tesla to Advertise
Tesla Motors (TSLA) has announced that it will start advertisements. The company has never had an advertising campaign, instead relying on word of mouth. The announcement came during the company's annual meeting, when the company also stated it would likely introduce two new products in the next year. | | | | • | Netflix Pitches Advertisers for Its Ad Tier
Streaming giant Netflix (NFLX) is pitching advertisers for its ad-supported plan. While the company has the largest total number of subscribers, it has the lowest amount of subscribers on the ad-supported level, with just under one million. Advertising is one way streaming companies can increase profitability as subscriber growth has slowed. | | | | • | Elizabeth Holmes Heads to Prison
Theranos founder and CEO Elizabeth Holmes is heading to prison, following years of court proceedings and filings to avoid jail time. The former CEO was found guilty of defrauding investors in January 2022, and has been delaying the start of her 11-year sentence ever since. | | | | | | TOP | | CMA | 12.504% | | | ZION | 11.735% | | | KEY | 8.164% | | | LNC | 8.05% | | | KEYS | 7.606% | | | BOTTOM | | AON | 2.565% | | | RE | 2.455% | | | RMD | 2.107% | | | ILMN | 2.021% | | | WST | 2% | | | | | | | | | Stocks have really been trading in this 3800 to 4200 range on the S&P 500 since the middle of November, and we're kind of stuck there. I think it's reflective of the uncertainty that investors feel around what will happen on the policy front. How will the economy respond? Will consumers be able to continue spending through this period, and how long can that last? | | - Bill Merz, analyst at U.S. Bank Wealth Management, on how the stock market has become range-bound over the past few months, in line with the mixed economic data showing a slowing economy but declining inflation and a strong jobs market. | | |
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