Wednesday, August 23, 2023

😳Here Comes the Shutdown Fears Again – Here’s the Game Plan

Good morning. Although the U.S. averted a debt ceiling shutdown in the spring, the government is...
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. Although the U.S. averted a debt ceiling shutdown in the spring, the government is now projected to run out of money – again – on September 30th. That's plenty of time for markets to prepare.

While it will likely mean a little bit of volatility, as a shutdown could lead to a slowdown in discretionary government spending, chances are it won't mean much, just like other past government shutdowns. Amid rising credit fears and a shaky market, however, the next few weeks could see more volatility than usual going into September and October. Those are historically the worst performing months of the year.

Traders may want to look for downside opportunities in the coming weeks ahead of a shutdown, particularly for overbought stocks ripe to drop. And investors can start looking for companies to buy off their highs for the year, right before what will likely be a seasonal year-end rally.

Now here's the rest of the news:

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MARKETS
DOW 34,288.83 -0.51%
S&P 4,387.55 -0.28%
NASDAQ 13,505.87 +0.06%
*As of market close
Markets closed mixed on Tuesday, with a slight gain for the Nasdaq.
Oil dipped 0.6 percent, closing at $80.25 per barrel.
Gold rallied 0.2 percent, last going for $1,927 per ounce.
Cryptocurrencies traded lower, with bitcoin at $25,819 at the stock market close.

Today's TOP TIPS
This Overlooked Tech Trend Continues to Grow
Investors have a number of tech trends that they can play. This year, AI stocks have been all the rage. But other parts of the tech space are big and steady winners, even if they don't get the headline attention.

One such area is in cybersecurity plays. Data breaches are on the rise. And companies with the skills to reduce or mitigate the impact of a breach can see growing returns.

» FULL STORY

Insider Activity Report: Crocs (CROX)
Douglas Treff, a director at Crocx (CROX), recently bought 2,114 shares. The buy increased his holdings by 2 percent, and came to a total cost just over $200,000.

The buy comes a week after the company CFO bought 1,950 shares, paying just over $198,000 to do so. There have been a few other buys from company directors earlier in the year. The CEO sold off about 3 percent of his holdings in April, at a price about 40 percent higher than today's.

» FULL STORY

Unusual Options Activity: Petroleo Brasileiro (PBR)
Petroleo Brasileiro (PBR), also known as Petrobras, is flat over the past year as energy prices have been volatile, but well off of 2022's highs. One trader is betting on a move higher in the coming weeks.

That's based on the October $11 calls. With 58 days until expiration, 6,553 contracts traded compared to a prior open interest of 114, for a 57-fold rise in volume on the trade. The buyer of the calls paid $2.70 to make the bullish bet.

» FULL STORY

IN OTHER NEWS
Auto Loan Delinquencies Rise

Rising interest rates are leading to higher costs for car payments. That's squeezing many consumers out of the market for a car. Today, only one new car model sells for less than $20,000, and sold just 5,300 units compared to 7.7 million new vehicles sold. This trend threatens to lead to the car market stalling out.
Mall Traffic Rises

Foot traffic is up at U.S. malls by about 12 percent in 2022 compared to 2019. For lower-tier malls, the rise was closer to 10 percent. Some malls are adapting to the digital environment with other products and services besides traditional stores. Top-tier malls reported a 95 percent lease rate last year, lagging just slightly behind 2019 data.
Treasury Yields Rise as Traders Bet on Higher Rates for Longer

Investors are increasingly betting that interest rates are unlikely to move meaningfully lower anytime soon, with 10-year yields hitting a high of 4.339 percent in recent trading, its highest level since 2007. The rise in yields may also be contributing to the selloff in stocks so far this month.
Teva to Pay Fines for Price-Fixing Charges

Drugmaker Teva Pharmaceuticals (TEVA) has agreed to apay fines totaling $255 million and to divest a cholesterol drug, in order to resolve charges related to price-fixing. The Department of Justice has announced the deferred prosecution agreement, and is part of a number of price-fixing cases the DoJ has been working on in recent years.
Snapchat Expanding Generative AI Features

Social media platform Snapchat (SNAP) is expanding its AI features, following the launch of the generative AI chatbot My AI. The new feature, dubbed "Dreams" will allow for experimentation with AI images that may contain users and their friends in imaginative backgrounds.

S&P 500 MOVERS
TOP
HAS  7.067%
MRNA  4.668%
IFF 3.655%
LOW 3.608%
BIDU 3.282%
BOTTOM
M 13.883%
VFC 6.483%
BBY 6.009%
BBWI 5.256%
RF 5.132%

Quote of the Day
I think the dip you saw last week was the beginning of more to come. The bond market is putting up a really attractive alternative to equity investors—unless somebody believes that the S&P 500 is gonna go from the no earnings growth it's been stuck in for about two years now to really strong earnings growth.
- David Bianco, CIO at DWS Group Americas, on why higher interest rates make bonds look like a relatively more attractive investment than stocks in the short-term, which could lead to less capital moving into stocks in the months ahead.

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A young Company has developed its own system to extract lithium 77x faster than how it's done currently. This tech could speed up the extraction to mere weeks and increase efficiency to 90%.

Learn What this means to the Lithium Starved World Economy

This is a paid advertisement. Please refer to the Important Notice and Disclaimer for additional information.


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