Stocks are starting to soften up in a major way

Plus: One number tells you what you need to know about a company [Image]( Thursday, June 1, 2023 [Newly Released Exposé: Wall Street Insider Reveals his Six Figure Investment]( The company has a series of potential contracts on the horizon… with one being from one of the largest tech companies in the world. Their top engineers are actively trying to get their hands on this tiny company’s technology, and this partnership could unleash a BILLION-dollar revenue surge. [Stream the private interview here.]( Dow Jones | 32,908 | -0.41% S&P 500 | 4,179 | -0.61% Nasdaq | 12,935 | -0.63%   MARKET MINUTE   Stocks Fade on Jobs Data and Growing Risk of Recession Equities extended losses for the second day as the Labor Department’s JOLTS report showed job openings unexpectedly surged to over 10 million in April - the highest number in three months. While this release reinforced speculation the Federal Reserve will have room for another interest-rate hike over the next two meetings, it’s very hard to lend to much credence to this data point. Here's why we should all take it with a grain of salt... Over the last year, several economists that have questioned the reliability of JOLTS data given the survey’s response rate. At the end of 2022, it was as low as 31%, or about half of what it was before the pandemic. In other words, the Fed is using a really small sample group to make some very big decisions about policy. The Fed might well develop a healthy skepticism toward this data. If this is the case, with the stress in the banking sector, along with the debt-ceiling drama, we could very well see a pause in interest rate hikes. China’s economy, with its "growth story" that never materialized, is also having an impact on U.S. markets. Our oil, copper, semiconductor, and many other industries bank on China's economic performance, the demand it drives and the supply it provides, to draw revenue. Chinese shares are now tumbling as investors are becoming increasingly pessimistic about the country’s economic recovery in the near term. Its stocks are now back in a bear market after rallying earlier this year. On top of that, there’s a growing, not shrinking, risk of a U.S. recession, and with the S&P 500 dropping below its key 4,200 level, technical traders are watching for a breakdown. Banking and "Bad Breadth" The SPDR S&P Regional Banking ETF (KRE) dropped 3% yesterday, with traders combing through Federal Deposit Insurance Corp’s remarks that the number of lenders with weakness increased in the first quarter. This was not a small change either; U.S. bank deposits dropped by the most since the early 1980’s banking crisis. Equities remain extremely vulnerable as the market heads into the last month of the quarter. By now, everyone is well aware of the market’s breadth problem, and according to Jonathan Krinsky at BTIG, “We think June will show the risks when the weak remain weak, and the strong unwind lower.” Garrett {NAME} is in the same camp, [watching only a few mega cap stocks support the entire market](. Traders continue to watch the latest developments in Washington, with the debt-limit deal struct by President Joe Biden and House Speaker Kevin McCarthy heading towards a vote today in the House of Representatives. Success or failure here could create a tipping point in the market given everything else happening. Economics and Earnings It seems like every day a Federal Reserve Governor is saying "yes" or "no" to a pause and this just what we got yesterday. Governor Philip Jefferson signaled the central bank is inclined to keep interest rates steady at its next meeting in June to give policymakers the time they need to gauge the economic climate. Meanwhile earnings from Salesforce Inc. (CRM), Crowdstrike Holdings Inc. (CRWD) both showed that the corporate customer is feeling pressure. While Salesforce raised its full year guidance, Capex was up 36% and significantly above analysts’ consensus. Crowdstrike on the other hand fell more than 10% after-hours as the company is showing signs of slowing revenue growth.     Top Profit Opportunities   [A Market Running on Fumes]( — By Chris Johnson, Technical Trader If you need a laugh for a second, the current situation surrounding the debt ceiling reminds me of a Seinfeld episode. Remember the episode when Kramer test drives the Saab to find out how far he can go on an empty tank of gas? That’s what’s going on with the market right now. When it comes to the debt ceiling, the market’s nerves are starting to fray and we’re actually in danger of the optimistic expectations that a deal had to be done could meet with the stark reality that it may not get done. Not good. [But there’s also a tectonic shift in the market which has nothing to do with the negotiations that I’m watching with concern. Here it is.](   [Your Next Big Market Win, Brought to you by the Letter "F"]( — By Garrett {NAME}, Executive Publisher Who is the most underrated name in the history of finance? Is it Adam Smith? Or Warren Buffett? Jim Rogers? Or Benjamin Graham? What about Stanley Druckenmiller? There’s a case to be made for all of them… But let me introduce you to Joseph Piotroski. He created one of the most important money-making strategies in financial history. As I’ve explained, his (Piotroski) F-score system is one of the most successful algorithmically driven strategies out there – a “poor man’s” momentum gauge that tells you everything you need to be assured a company is well run and driving shareholder value to the extreme. 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