 | | | Go od morning. While the Federal Reserve finally skipped raising interest rates at its latest meeting, there's a sign that the central bank will raise rates at least one more quarter-point in the coming months, and possibly twice. Inflation is coming down, but is still higher than expected. And financial markets are getting used to today's rates, which historically aren't too far from the post-World War II average.
For now, traders may be underpricing another move higher, however slight. That could lead to some market volatility later. But for now, traders see clear skies ahead, which may push markets slightly higher in the coming weeks.
Still, the market's move is now getting into overbought territory, so traders should start to look for the most overbought stocks for some put option trades in the weeks ahead.
Now here's the rest of the news: | | | | | |
| | |  | DOW 33,979.33 | -0.68% | | |  | S&P 4,372.59 | +0.08% | | | | | NASDAQ 13,626.48 | +0.39% | | | | | *As of market close | | | • | Stocks traded mixed on Wednesday, as the Federal Reserve kept interest rates unchanged. | | | • | Oil dropped 1.1 percent, closing at $68.68 per barrel. | | | • | Gold rose 0.1 percent, ending the day at $1,960 per ounce. | | | • | Cryptocurrencies traded flat overall, with bitcoin at $25,868 at the market close. | | | | | | | |
| | | Inflation Is Down, But Not Out – Invest with Companies Keeping Retail Prices Down | | | | The latest inflation data continues to slow. Prices are now rising at their lowest rate in two years. But they're still rising. And inflation is cumulative. So chances are, we'll still have to deal with rising costs for everyday goods.
Many consumers are shifting their spending from brand-name products to store-brands. The price is a bit lower, and sometimes those products are even made in the same factories.
» FULL STORY | | | | |
| | Insider Trading Report: Six Flags Entertainment (SIX) | | | | Gary Mick, CFO at Six Flags Entertainment (SIX), recently bought 5,812 shares. The buy increased his stake by 7 percent, and came to a total cost just under $157,000.
The buy came just a few weeks after he bought 2,500 shares. And the CFO has made 5 other buys since last December, now totaling nearly $900,000. Other company insiders have been buyers as well, with the last insider sale in September 2021.
» FULL STORY | | | | |
| | Unusual Options Activity: Cameco (CCJ) | | | | Uranium producer Cameco (CCJ) just broke through to a new 52-week high. One trader is betting the rally will continue in the coming months.
That's based on the September $37 calls. With 91 days until expiration, 20,433 contracts traded compared to a prior open interest of 151, for a 135-fold jump higher in trading volume. The buyer of the calls paid $0.85 to make the bullish bet.
» FULL STORY | | | | |
| | • | Producer Price Index Drops for 11th Month
The Producer Price Index (PPI) has dropped for the 11th consecutive month, with a reading for May of 1.1 percent. That's a 0.3 percent drop compared to the prior month, and is below the PPI's average level going into the pandemic in 2020. The PPI is an inflation measure preferred by the Federal Reserve for gauging the impact of inflation in the economy. | | | | • | American Investment Banks Leave China IPO Market
Initial public offerings from Chinese companies are out of favor with global investment bankers. American investment banks are nearly entirely out of the market over regulatory concerns. The move makes it harder for Chinese companies to list and sell shares on international markets. | | | | • | Shell Sees Oil Output Steady Through 2030
Oil giant Shell (SHEL) sees its oil output holding steady through 2030. The energy company has been investing in alternatives, but sees the highest prospective returns in the coming years from fossil fuels such as oil. The company also increased its dividend payment by 15 percent. | | | | • | Vodafone to Merge with Three
U.K. mobile telecom company Vodafone (VOD) has announced a plan to merge with Hutchison Group, owner of Three. The merger would include debt from both businesses, and be an all-stock offer. The deal is valued at about $19 billion, but is subject to regulatory approval. | | | | • | Google May Break Up Ad Business
The European Commission has suggested that Google (GOOG) break up its adtech business. Currently, the regulatory body views the company as in breach of EU antitrust laws, on the grounds that the company distorts competition in the advertising sector by taking advantage of its dominant position as a search engine. | | |
| | | | TOP | | | NKE | 5.891% | | | | ORCL | 4.577% | | | | SYK | 4.332% | | | | BSX | 4.3% | | | | CHRW | 4.182% | | | | BOTTOM | | | HUM | 11.242% | | | | CVS | 7.437% | | | | ELV | 6.932% | | | | UNH | 6.78% | | | | CNC | 6.622% | | | | |
| | |  | | We continue to believe this year's rip higher has been a classic bear market rally, inflation is going to remain 'sticky', the Fed will be 'higher for longer' and a recession will hit later this year. | | - Chris Senyek, analyst at Wolfe Research, laying out why the market isn't ready for a sustainable move higher into a long-term bull market right now, and why the current pattern is similar to other bear market rallies in the past. | |
|
No comments:
Post a Comment