Wednesday, August 30, 2023

👆Here’s What Will Lead the Market Higher…

Good morning. Hedge funds are moving out of tech. Considering that sector was the big winner in...
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. Hedge funds are moving out of tech. Considering that sector was the big winner in the first half of the year, taking some profits makes sense. It's also a sign that other sectors look relatively undervalued – and that they could drive the market's next move higher.

That includes moves into the retail sector, which as been a poor performer so far this year. Recent retail earnings suggest things aren't terrible, but that a high level of retail theft remains an issue. If there's any progress on that front, shares of big-box retailers could soar later this year. Another space includes the big media companies, which have been dealing with slower consumer spending and lower ad revenues.

Investors and traders alike can find plenty of oversold opportunities in those sectors. Investors may want to focus on companies paying a divided higher than their five-year historical average. Traders may want to look for companies with the highest short interest for the biggest percentage rebound possible.

Now here's the rest of the news:

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MARKETS
DOW 34,852.67 +0.85%
S&P 4,497.63 +1.45%
NASDAQ 13,943.76 +1.74%
*As of market close
Markets moved higher on Tuesday, extending gains for a third consecutive day.
Oil rose 1.4 percent, closing at $81.23 per barrel.
Gold rose 1.0 percent, last going for $1,966 per ounce.
Cryptocurrencies jumped higher, with bitcoin at $27,866 at the stock market close.

Today's TOP TIPS
This Retailer May Be Ready to Jump Higher
Retail stocks have been an out of favor sector with the market this year. Consumer spending on goods has dropped. And there's been a rise in retail theft leading to higher levels of inventory loss, known in the industry as shrinkage.

However, some companies could fare better than others going forward, and those that can improve on earnings and keep inventory low could give investors a great return in the months ahead.

» FULL STORY

Insider Activity Report: Forward Air Corp (FRWD)
Chris Ruble, COO at Forward Air Corp (FRWD), recently bought 1,433 shares. The buy increased his stake by 5 percent, and came to a total price just under $100,000.

The buy came about a week after five different company directors bought shares in the 500 to 5,000 share range, with the largest buy coming to $321,650. Other company insiders have been active buyers earlier this year. The last insider sale occurred in May 2022.

» FULL STORY

Unusual Options Activity: BlackBerry (BB)
Mobile security system developer BlackBerry (BB) surged higher last week on a rumor that the company was going to be bought out. One trader is betting that the rumor is false and shares will trend lower in the coming weeks.

That's based on the September 22 $5 puts. With 23 days until expiration, 8,407 contracts traded compared to a prior open interest of 292, for a 29-fold rise in volume on the trade. The buyer of the puts paid $0.30 to make the bearish bet.

» FULL STORY

IN OTHER NEWS
Americans Increasingly Ditching Home Insurance

Citing the rising prices of coverage, Americans are increasingly ditching homeowners insurance. That leaves them at considerable risk in the event of a disaster, but it's also one areas that's seen double-digit growth every year for the past several years. Typically, home mortgage policies require a homeowner to carry insurance.
DOT Issues Record Fine to American Airlines for Tarmac Delays

The Department of Transportation has levied a $4.1 million fine against American Airlines (AAL), for lengthy tarmac delays on 43 flights between 2018 and 2021. The longest delay was just over six hours long, in excess of the three hour delay that kicks off the fines. This marks the largest-ever fine for an airline delay to date.
Robinhood Mysterious Bitcoin Buyer

Over the past few weeks, one buyer has been adding cryptocurrency bitcoin hand over fist, with over $3 billion in purchases. The buyer, according to chain data, is discount brokerage Robinhood (HOOD). The broker is likely moving to get in ahead of potential approval for a bitcoin ETF, which many see as a potential catalyst to send prices higher.
Google to Sell Map Data to Solar Producers

Tech giant Google (GOOG) is looking to sell map data to provide companies with environmental data. The goal would be to find the best ways to incorporate technology such as solar panels onto building roofs. The company sees a number of potential clients, and expects to generate an extra $100 million in revenue in the first year of sharing this detailed data.
OpenAI Launching ChatGPT Option for Enterprise Customers

OpenAI, creator of ChatGPT, is launching ChatGPT Enterprise, a business-focused version of its popular generative AI chatbot app. The AI can perform the same tasks as the basic model, including writing emails and drafting entire essays, with additional privacy and data analysis capabilities and customization options.

S&P 500 MOVERS
TOP
TSLA 7.688%
CTLT 4.755%
PODD 4.564%
CHTR 4.421%
MELI 4.418%
BOTTOM
PCAR 2.724%
NSC 1.643%
NRG 1.277%
DLTR 1.172%
CMI 1.07%

Quote of the Day
As long as economic growth is strong, a resurgence in inflation is a risk. As such, the first Fed rate cut will likely only come in late 2Q 2024, once job losses have risen and growth has clearly slowed. By next summer, we will be able to determine if Fed Chair Powell could 'navigate by the stars under cloudy skies.
- Seema Shah, Chief Global Strategist, Principal Asset Management, on the potential for inflation pick up in the coming months, which will keep interest rates at current levels or higher through the first half of 2024.

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