Good morning. Raising interest rates can tighten economic conditions. But nothing will tighten...
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 33,127.74 | -0.86% | | | | | S&P 4,061.22 | -0.72% | | | | | NASDAQ 11,966.40 | -0.49% | | | | | *As of market close | | | • | Stocks continued lower on Thursday, amid renewed fears in the banking sector. | | | • | Oil dipped 0.2 percent, closing at $68.49 per barrel. | | | • | Gold rallied 1 percent, ending the day at $2,057 per ounce. | | | • | Cryptocurrencies traded mixed, with Bitcoin at $28,879 at the stock market close. | | | | | | | |
| | | Buy This Management Titan Ahead of His Next Big Move | | | | A company can have a great product. Or a great marketing team. But if management isn't good… the company will falter. Even a manager who knows to step aside for the team is better than an executive who makes the wrong decisions and ignores what the staff has to say.
This can translate into great stock returns… or poor ones. So all said and done, company management is a key factor, even though it doesn't show up on the balance sheet.
» FULL STORY | | | | |
| | Insider Trading Report: American Water Works Company (AWK) | | | | Michael Marberry, a director at American Water Works Company (AWK), recently bought 825 shares. The buy increased his holdings by 200 percent, and came to a total cost of $120,541.
This marks the first insider buy at American Water Works over the past two years. Otherwise, a few company executives have been sellers of shares, largely after exercising stock options with the firm.
» FULL STORY | | | | |
| | Unusual Options Activity: MPLX LP (MPLX) | | | | Oil and gas midstream company MPLX LP (MPLX) is up 2 percent over the past year, slightly trending higher even as energy prices have been moving lower. One trader sees possible upside in the weeks ahead.
That's based on the June 16 $32 calls. With 42 days until expiration, 59,400 contracts traded compared to a prior open interest of 260, for a staggering 248-fold surge in volume on the trade. The buyer of the calls paid $2.65 to make the bullish bet.
» FULL STORY | | | | |
| | • | PacWest Slides on Failed Capital Raise
Regional bank PacWest Bancorp (PACW) has become the next regional bank facing liquidity issues. The company's shares lost over half their value on Thursday as the bank reported that its plans to raise capital were not bearing fruit, even as the bank also reported that its total deposits were rising. | | | | • | White House Considers Debt Default Options
The Biden administration is considering several alternatives to bolster their negotiating position in raising the debt ceiling. The proposals include a short-term increase to the borrowing limit. The plans are coming as the latest data shows a potential default as early as June 1. | | | | • | China Reports Spending Surge on May Day
China's May Day holiday saw the first time the country has spent more in a day than before the pandemic. The holiday is part of the country's Golden Week, and this is the first year the holiday has been celebrated since the pandemic. Travel is also reportedly up 71 percent compared to the prior year. | | | | • | Ferrari Profit Rises as Demand Remains Strong
Automaker Ferrari (RACE) saw its first-quarter profits rise 24 percent, and shipments rose 10 percent. The luxury firm also reports that demand remains well into 2025. The increase is due to a rise in a richer mix of vehicle models sold, as well as an increase in car personalization's, which can add hundreds of thousands of dollars to the cost of a car above the sticker price. | | | | • | Shopify Announces Layoffs
E-commerce retailer Shopify (SHOP) is laying off 20 percent of its workforce. The move will reduce the company's headcount by about 2,000 positions. The firm also announced that it's selling its logistics business to privately-held Flexport for a 13 percent stake in that company. | | |
| | | | TOP | | | BALL | 13.395% | | | | FLT | 7.842% | | | | RCL | 7.156% | | | | CTSH | 6.76% | | | | SEDG | 6.595% | | | | BOTTOM | | | PARA | 28.353% | | | | CMA | 12.282% | | | | ZION | 12.048% | | | | MOS | 9.984% | | | | OGN | 9.2% | | | | |
| | |  | | The Fed is concerned that tighter credit conditions will weigh on economic activity and hiring, while helping maintain disinflation trend. Credit tightening is about to cripple the economy and it appears that as long as we don't get a perfect storm of hotter-than-expected labor and inflation data, the Fed will keep rates on hold for at the very least till the end of the year. | | - Ed Moya, senior market analyst at Oanda, nothing that the Fed is likely done with its interest rate hike policy after it has raised interest rates for 10 consecutive meetings and the banking system has come under some strain. | |
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