Wednesday, July 5, 2023

🚗Enjoy the Low Gas Prices – Here’s Why They May Track Higher Soon

Good morning. With gas prices down about 30 percent compared to this time last year, Americans...
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.

Good morning, With gas prices down about 30 percent compared to this time last year, Americans are hitting the open road. However, gas prices may not stay down forever. Over the weekend, Saudi Arabia and Russia announced an extension of export cuts. As the key player in the OPEC cartel, Saudi Arabia has made a number of cuts to prices this year, likely in a bid to keep oil over $70.

Chances are the cartel may overshoot on its production cuts, and prices will jump higher in time. Investors may want to look at buying some bargains in the energy space now, especially as these companies are still inexpensive and many major oil companies offer dividend yields above that of the overall market.

Now here's the rest of the news:

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MARKETS
DOW 34,418.47 +0.03%
S&P 4,455.59 +0.12%
NASDAQ 13,816.77 +0.21%
*As of market close
Markets were closed on Tuesday, in observation of Independence Day.

Today's TOP TIPS
This Tech Trend Remains Out of Favor, But May Prove a Speculative Buy Now
Investors have a tech flavor of the year, and it's artificial intelligence (AI). That's in contrast to past years, when investors have been enamored with cloud services, cryptocurrency mining, electric vehicles, or any other number of trends.

Those trends have staying power too. And since they're now not the market's favorite, it's possible to buy into long-term potential winners at a better price. The best time to buy these tech trends isn't just when they're out of favor, but when they're making positive strides forward.

» FULL STORY

Insider Activity Report: CME Group (CME)
William Shepard, a director at CME Group (CME), recently bought 322 shares. The buy came to a total cost just under $58,000, and the buy increased the director's stake by less than 1 percent.

The director has been a regular buyer since last November, with no insider sales in that time. This is his sixth purchase. The last purchase occurred in March, and came to just under $94,000. Insiders were largely sellers before then.

» FULL STORY

Unusual Option Activity: Digital Turbine (APPS)
App software company Digital Turbine (APPS) has lost over half its share price in the past year. One trader sees a rebound in the weeks ahead.

That's based on the August $12.50 calls. With 44 days until expiration, 4,387 contracts traded compared to a prior open interest of 115, for a 38-fold rise in volume on the trade. The buyer of the calls paid $0.30 to make the bullish bet.

» FULL STORY

IN OTHER NEWS
Credit Crunch Woes Continue to Rise

The credit markets are expected to further tighten this year, which may make it more difficult for businesses to obtain funding or to finance purchase such as mortgages and cars. This could lead to a credit crunch, given the softening economic data. However, consumers remain strong, so any such crunch would likely be mild.
Independence Day on Track for Record Travel

A decline in fuel prices likely boosted travel over the weekend and through Independence Day. According to AAA, a record 43.2 million Americans travelled by car for the holiday, a move that was boosted by the fact that gas prices are about 30 percent below last June's record high.
92 Percent of New Cars Cost Over $30,000

Vehicle affordability has hit an all-time low. Estimates are that 92 percent of all new cars cost over $30,000, with just 8 percent costing less. Before the pandemic, about 38 percent of new cars came in under $30,000. Besides higher inflation, rising demand for fully-loaded vehicles has helped lead to the surge in pricing.
Apple Cuts Vision Pro Production

Apple (AAPL) is scaling back its production plans for the Vision Pro headset, according to an industry report. The company recently announced the new augmented reality (AR) headset, but its high starting price point in the thousands may come as sticker shock given the far lower cost for virtual reality (VR) headsets sold by competitors.
Twitter Enforces Read Limits

Social media platform Twitter has started to enforce read limits of 6,000 daily posts for verified users and 600 for unverified. The numbers were increased to 10,000 and 1,000 later. The move came as the company reported issues with data scraping and system manipulation.

S&P 500 MOVERS
TOP
TSLA  6.895%
FIS 6.033%
ZION 4.766%
CMA 3.872%
WBD 3.748%
BOTTOM
EW 3.011%
EFX 2.622%
STE 2.596%
ALGN 2.559%
IDXX 2.399%

Quote of the Day
The tailwinds from a technical perspective may be ending, as the universal pessimism fades, but there are growing indications that a handoff from technicals to fundamentals is possible, with encouraging macro and earnings data.
- Mark Hackett, Nationwide's chief of investment research, on why the market may continue higher in the coming months, with value stocks taking the lead over tech stocks following their big run.

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