Good morning. IRS data shows that millions of Americans have voted with their feet in the past...
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 33,684.53 | -1.08% | | | | | S&P 4,119.58 | -1.16% | | | | | NASDAQ 12,080.51 | -1.08% | | | | | *As of market close | | | • | Stocks traded lower on Tuesday, as the Federal Reserve started its next meeting. | | | • | Oil slid 5.5 percent, closing at $71.54 per barrel. | | | • | Gold jumped 1.7 percent, ending the day at $2,027. per ounce. | | | • | Cryptocurrencies traded higher, with Bitcoin at $28,694 at the stock market close. | | | | | | | |
| | | To Make a Decent Return, Find a Stock That Funds Must Buy | | | | The stock market is an index of a number of companies. And it's largely weighted by market cap. That index can change all the time, and for any number of reasons. One reason may involve the bankruptcy of an index member company.
That's the case with the S&P 500. First Republic Bank is no more, having been seized by regulators and having its deposits sold off. But it's the S&P 500, not the S&P 499. The index needs a new member.
» FULL STORY | | | | |
| | Insider Trading Report: Beacon Roofing Supply Inc (BECN) | | | | CD&R Investment Associates, a major holder of Beacon Roofing Supply Inc (BECN), recently added 99,880 shares to their holdings. The buy increased the fund's stake by 1 percent, and came to a total cost of $6 million.
This is the second buy from this fund so far this year. A company President bought 3,850 shares in March, paying just over $250,000 to increase their holdings by 43 percent. Overall, insider buying has been far greater than sales over the past two years.
» FULL STORY | | | | |
| | Unusual Options Activity: Airbnb (ABNB) | | | | Hotel alternative Airbnb (ABNB) has slid about 22 percent over the past year, but the stock is up over 50 percent from its lows in 2022. One trader sees a further decline ahead for the company.
That's based on the May 12 $115 puts. With 9 days until expiration, 5,369 contracts traded compared to a prior open interest of 112, for a 48-fold rise in volume on the trade. The buyer of the puts paid $2.89 to make the bearish bet.
» FULL STORY | | | | |
| | • | Yellen Warns U.S. Could Hit Debt Ceiling by June 1
In a letter to House Speaker Kevin McCarthy, Treasury Secretary Janet Yellen has warned that the U.S. could hit its debt ceiling as early as June 1. The deadline has been moved up as tax receipts have come in lower than expected following the end of tax season in April. | | | | • | Fed About to Raise Interest Rates to 16-Year High
Interest rates are likely to rise at least a quarter point this week after the latest Fed meeting. That will continue to mark the fastest rate-hike cycle by the central bank in 40 years. It will also leave interest rates at a 16-year high. Market makers will be looking for statements by the central bank about whether or not to expect further rate hikes, or if the central bank is done hiking rates. | | | | • | FDIC Proposes Raising $250,000 Insurance Cap for Some Accounts
The Federal Deposit Insurance Corporation is looking to increase its maximum insurance cap for some business payment accounts. Currently, all accounts are capped at $250,000. But the latest bank runs largely impacted institutions where depositors such as corporations, had more cash than that on hand for operations such as payroll. | | | | • | West Coast Ports Nearly Quiet
Disrupted supply chains led to a large number of cargo ships waiting offshore to unload their cargo at West Coast locations, most notably the ports of Long Beach and Los Angeles. Today, the situation is the opposite. Ports are quieter than expected, and there are nearly no delays, which may also reflect declining consumer demand amid a slowing economy. | | | | • | Foxxconn Looking to Pull Lordstown Funding
Electric vehicle manufacturer Lordstown (RIDE) may be forced to file for bankruptcy. Taiwanese semiconductor company Foxconn has sent a letter to the company stating that they were in breach of an investment agreement as the price fell under $1.00 for 30 days, and is at risk of being delisted from the Nasdaq. | | |
| | | | TOP | | | TAP | 7.502% | | | | BR | 6.277% | | | | AME | 4.999% | | | | MAR | 4.784% | | | | NXPI | 3.964% | | | | BOTTOM | | | ANET | 14.979% | | | | LDOS | 14.271% | | | | CMA | 12.565% | | | | ZION | 11.783% | | | | SEE | 11.207% | | | | |
| | |  | | I wouldn't be surprised if there aren't some more attacks on regional banks, by short sellers. Particularly, not so much during earnings season, but when we get into May and June, and when people are looking for shorts to hedge their book. We have the debt crisis looming, so I would be surprised if we don't have some other banks coming under attack, particularly [with] the Fed raising rates [and] putting tremendous pressure on the financial system by keeping the yield curve so steeply inverted. | | - Jay Hatfield, CEO of Infrastructure Capital Management, on the potential for more danger ahead for regional banks as depositors look to safety and ahead of a potential market move lower. | |
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