Tuesday, September 5, 2023

😤This Sector Will Give You a Heads Up for the Next Market Decline

Good morning. There are many economic indicators out there – most of which aren't too valuable...
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. There are many economic indicators out there – most of which aren't too valuable once the data is collected and reported on. However, some data is fairly timely. That includes data from credit card providers on items such as outstanding debts and loan delinquencies.

Right now, we're seeing a move over $1 trillion in total credit card debt for the first time ever. And interest rates on that debt are rising to their highest levels. Plus, over the past two years, the percentage of cardholders carrying a balance has increased from 39 percent to 47 percent.

Those trends point to a strained consumer. If the trend on balances and delinquent payments worsens, it's possible that could eventually show up in declining consumer demand – which would likely move markets lower. Traders and investors alike should remain cautious in the coming few weeks, and look to credit trends for a sign of improvement.

Now here's the rest of the news:

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MARKETS
DOW 34,837.71 +0.33%
S&P 4,515.77 +0.18%
NASDAQ 14,031.82 -0.54%
*As of market close
Markets were closed on Monday, in observation of Labor Day.

Today's TOP TIPS
Stick With 2023's Winning Stocks of the Year
Markets tend to move in trends. Since bottoming out late last year, the trend has been higher, even with a few hiccups along the way like the drop in early August.

With stocks trending higher, last year's big losers have gained more ground than average. That trend will likely continue as well. That's good news for investors looking to catch up this year who may have missed out on the first part of the market rally.

» FULL STORY

Insider Activity Report: Markel Group (MKL)
Lawrence Cunningham, a director at Markel Group (MKL), recently bought 25 shares. The buy increased his holdings by 6 percent, and came to a total cost of $36,500.

The buy came a few weeks after the company CEO bought 100 shares, paying about $148,000 to do the same. Over the past six months, there have been nine insider buys, and two small sales from company directors, following a similar trend from 2022.

» FULL STORY

Unusual Options Activity: Comstock Resources (CRK)
Oil and gas exploration company Comstock Resources (CRK) is down by nearly a third over the past year, amid a decline in energy prices. One trader sees shares rallying higher in the coming weeks.

That's based on the October $13 calls. With 44 days until expiration, 18,969 contracts traded compared to a prior open interest 585, for a 32-fold rise in volume on the trade. The buyer of the calls paid $0.55 to make the bullish bet.

» FULL STORY

IN OTHER NEWS
Job Growth Continues, But Unemployment Rate Ticks Higher

The economy grew by 187,000 jobs in the U.S. in August, according to the latest data from the Bureau of Labor Statistics. That's just over expectations for gains of 170,000. The number has slowed in recent months, and July's day was revised downward by 30,000 jobs to 157,000. The news was enough to cause the unemployment rate to tick up to 3.8 percent.
White House Seeks Congressional Funding to Avert Shutdown

The federal government is expected to run out of funding on September 30, unless action is taken by Congress. The White House has asked for a short-term continuing resolution to maintain government spending past the end of the month.
Amgen and Horizon Therapeutics Reach FTC Settlement

The Federal Trade Commission has reached an agreement with Amgen (AMGN) and Horizon Therapeutics (HZNP), regarding their $28 billion merger. The regulatory agency is prohibiting the combined entity from bundling several of its products, but otherwise appears fine with the merger..
Saudi Aramco Considers Share Sale

Oil giant Saudi Aramco is considering selling shares to raise capital, after prior plans have fallen through. The company, the most valuable in the world, could sell up to $50 billion in shares. Oil prices have ticked up recently, which would offset the dilutive impact of issuing new shares now.
Robotics Sales Decline for Second Straight Quarter

For the second consecutive quarter, robot sales have declined, according to data from the Association for Advanced Automation (A3). Overall, sales dropped 37 percent year-over-year for the second quarter, and 29 percent from the first half of 2022. Last year saw a record year for sales, with a rise of 11 percent, and the current decline is being blamed on economic headwinds.

S&P 500 MOVERS
TOP
LULU 5.919%
HPE 5.68%
FCX 4.124%
INTC 3.97%
AMD 3.563%
BOTTOM
WBD 13.432%
PARA 8.946%
WBA 7.408%
FOXA 6.156%
FOX 5.898%

Quote of the Day
We're expecting globally a slowdown in growth, and that will have an impact on [emerging markets] Asia through trade conditions as well as access to financing in the region. There are still risks out there that inflation could prove stickier ... than currently expected, and that would lead to higher risks for longer and slower growth.
- Marie Diron, managing director at Moody's Investors Service, on why the ratings agency expects a global slowdown in growth in the quarters ahead, driven by higher interest rates and a slowdown in China.

Sponsored Content
Fed's "Dollar Rocket" Gains Liftoff…
Designed to process up to 1.7 million financial transactions per second…

FedNow is like a booster rocket for the U.S. Dollar.

Why's the Fed need a dollar rocket? Because FedNow provides the real-time "rails" upon which a digital dollar must function.

My message to Main Street America?

Get positioned alongside FedNow's national rollout, stat! Because early investors have a shot to top some of the market's biggest winners lately (i.e. gains of 273%... 434%... even 638%).

Click Here for the Urgent Details >>


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