Good morning. Last week's GDP data looks like good news on its surface. The economy is growing...
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.
| | | | DOW 38,109.43 | +0.16% | | | | S&P 4,890.97 | -0.07% | | | | NASDAQ 15,455.36 | -0.36% | | | | *As of market close | | • | Markets closed mixed on Friday, as inflation continued to tick lower. | | • | Oil rallied 1.1 percent, closing at $78.19 per barrel. | | • | Gold traded flat, ending trading at $2,018 per ounce. | | • | Cryptocurrencies rallied, with bitcoin at $41,948 at the stock market close. | | | | | | | | | | For Great Returns, Invest with Companies Expanding Into High-Margin Services | | | | One of the great success stories of the past decade has been the rise of many big-cap tech names. Companies like Microsoft (MSFT) and Amazon (AMZN) have soared to new highs on the back of the expansion into markets such as web services. These services tend to have a high profit margin once set up and running. And they create a recurring revenue stream compared to one-off sales. That kind of business model is seeing an expansion thanks to its success. » FULL STORY | | | | | | Insider Activity Report: Texas Capital Bancshares (TCBI) | | | | Robert Stallings, a director at Texas Capital Bancshares (TCBI), recently bought 12,000 shares. The buy increased his holdings by 3 percent, and came to a total cost of $227,260.
The director has been a regular buyer over the past few months, including over 11,000 shares in December and 13,000 shares in November and October. The company's Chief Administrative officer has also been a buyer in the past year, picking up 1,110 shares for just over $49,000. » FULL STORY | | | | | | Unusual Option Activity: Verizon Communications (VZ) | | | | Telecom giant Verizon Communications (VZ) is at its 52-week high following strong earnings last week. One trader sees the potential for a further rally in the weeks ahead. That's based on the March $46 calls. With 45 days until expiration, 24,648 contracts traded compared to a prior open interest of 380, for a 65-fold rise in volume on the trade. The buyer of the calls paid $0.15 to make the bullish bet.
» FULL STORY | | | | | | • | FTC to Probe Big Tech AI Acquisitions
The Federal Trade Commission will look into how large-cap tech companies invested in AI. The agency is concerned with the investments these companies are making, which may give them a significant advantage in the commercialization of artificial intelligence compared to peers. | | | | • | EquiLend Hit by Cyber Attack
EquiLend reported that it was hit by a cyberattack last week, and that some of its services would remain offline for a few days. EquiLend processes trillions in securities transactions each month, playing a significant but behind-the-scenes role in financial markets. EquiLend is owned by a number of major Wall Street banks. | | | | • | Paramount Announces Job Cuts
Media giant Paramount Global (PARA) has reported that it will lay off up to 800 workers. The company is looking to cut costs. Paramount also continues to attract speculation that there may be a buyout offer in the weeks ahead that would take the company private. The news and rumors are pushing shares higher. | | | | • | Microsoft to Lay Off 1,900 Gaming Employees
Tech giant Microsoft (MSFT) will lay off 1,900 employees across its Xbox and Activision Blizzard divisions. The layoffs amount to almost 9 percent of the 22,000 employees in Microsoft's gaming divisions. That's in line with other video game developer layoffs that have been announced in recent months. | | | | • | Hampton Estate Sells for $88.5 Million
The La Dune mansion in the Hamptons has sold for $88.5 million at auction. The four-acre estate has 23 rooms and was most recently listed in 2022 for $150 million. The two properties comprising the estate were put into Chapter 11 bankruptcy after a foreclosure ruling last year. | | | | | | TOP | | AXP | 7.104% | | | ABNB | 5.285% | | | COF | 4.655% | | | BIO | 4.031% | | | CTLT | 3.61% | | | BOTTOM | | INTC | 11.907% | | | FICO | 6.845% | | | KLAC | 6.595% | | | TER | 4.084% | | | CCL | 3.886% | | | | | | | | | We've spoken a lot about resilience in the US economy over the last couple years but that the economy can continue to show such strength and low unemployment with interest rates so high and inflation falling back toward target is unbelievable. | | - Craig Erlam, senior market analyst at Oanda, on the economy's strength which could continue in the coming years and keep the bull market in stocks going for some time. | | |
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