Friday, September 1, 2023

💵Prices In this Market May Ease Soon

Good morning. The jump in inflation and then jump in interest rates to fight that inflation has ...
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. The jump in inflation and then jump in interest rates to fight that inflation has led a number of assets to whipsaw in price. But good news is potentially coming for those interested in a car.

That's because inventories have started to grow, particularly with electric cars. Even though those cars carry a big tax credit of up to $7,500, the lack of demand could indicate that the market is getting off its low inventory era.

Investors should be aware that auto sales are cyclical, and a down cycle could be bad for automotive stocks right now. But for traders, it could be a good shorting opportunity in the months ahead.

Now here's the rest of the news:

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MARKETS
DOW 34,721.91 -0.48%
S&P 4,507.66 -0.16%
NASDAQ 14,034.97 +0.11%
*As of market close
Markets traded mixed on Thursday, with tech stocks moving higher.
Oil rose 2.3 percent, closing at $83.54 per barrel.
Gold dipped 0.3 percent, last going for $1,967 per ounce.
Cryptocurrencies sank, with bitcoin at $26,126 at the stock market close.

Today's TOP TIPS
This New Technology Rollout Could Take One Stock to New All-Time Highs
While markets have been excited about artificial intelligence this year, other tech trends haven't gotten as much interest. That's led to better valuations, particularly for companies that are rolling out new technologies of their own.

One company in particular is putting out a new gadget that will likely significantly boost its bottom line. Even better? It looks like the company won't be raising prices, a much-needed relief given the recent inflation.

» FULL STORY

Insider Activity Report: Kodiak Gas Services (KGS)
Robert McKee, President and CEO at Kodiak Gas Services (KGS), recently added 16,180 shares. The buy increased his holdings by 17 percent, and came to a total cost of $292,033.

The buy came a week after the company's Chief Accounting Officer picked up 500 shares for $9,865, and a director bought 5,000 shares for just under $96,000. Over the past two years, there have been over a dozen insider buys and no sales.

» FULL STORY

Unusual Options Activity: Oracle (ORCL)
Database software company Oracle (ORCL) has been trading in a range since June. One trader sees shares sliding lower in the next six months.

That's based on the March 2024 $95 put option. With 196 days until expiration, 3,631 contracts traded compared to a prior open interest of 103, for a 35-fold rise in volume on the trade. The buyer of the puts paid $2.04 to make the bearish bet.

» FULL STORY

IN OTHER NEWS
Insurers Ready to Protect from Catastrophic Weather

The insurance industry has significantly increased premiums in recent years to protect assets such as home and cars from unpredictable but catastrophic events such as wildfire and earthquakes. Now, the industry boasts nearly $1 trillion in capital to protect customers from the higher costs of weather damage.
Rising Labor Costs Could Fuel AI Growth

Rising labor costs could help fuel a trend in the growth of artificial intelligence. Nearly 300 million full-time jobs are at risk from the increased development of AI, either fully or in part. While some new jobs will be created from this tech trend, the jobs most at risk are those that are seeing higher labor costs.
Google Sets Pixel 8 Event for October 4

Tech giant Google (GOOG) is unveiling its latest handset, the Pixel 8, on October 4. That will be just a few weeks after Apple (AAPL) unveils its iPhone 15. While Google has a fraction of Apple's market share, they've made big strides since the Pixel 6 was launched in 2021.
DOJ and SEC Investigate Tesla Motors

The Department of Justice and the Securities and Exchange Commission are investigating Tesla Motors (TSLA), in regards to personal benefits paid to CEO Elon Musk. One notable benefit could have been a house for the company CEO, and a project known internally as Project 42.
HHS Calls for Easing Restrictions on Cannabis

The Health and Human Services Department is recommending an easing of restrictions on cannabis use. The drug is currently listed as a Schedule 1 drug, indicating no accepted medical use and a high potential for abuse. Cannabis related stocks rallied on the news, given the increasing legalization of cannabis at the state level.

S&P 500 MOVERS
TOP
WDC 5.786%
ANET 4.482%
STX 3.968%
AVGO 3.288%
CRM 3.046%
BOTTOM
DG 12.318%
PODD 5.029%
ELV 3.838%
CHRW 3.765%
MOH 3.568%

Quote of the Day
US Growth maintains the break higher from its recent range relative to Value and the completion of a bullish continuation pattern. This is seen to reinforce the existing large base and we maintain our view for Growth to continue to outperform Value over the next 2 to 4 weeks…
- David Sneddon, technical analyst at Credit Suisse, suggesting that value stocks will outperform growth stocks like tech companies over the next month.

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