Bad news is good news on Wall Street

Earn While You Learn! ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏  ͏ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ ­ [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!]( Hello investor, Bad news is good news on Wall Street Yesterday was busy with economic data. The theme was clear — the economy is cooling. The services sector contracted at the fastest pace in four years while the labor market cooled even further. But Wall Street was somewhat glad to see them. Why? It makes this year’s rate cuts much more likely. - “Bad news is good news,” said Fawad Razaqzada at City Index and [Forex.com](. “That’s how risk assets reacted in the aftermath of today’s US data releases.” As a result, the Nasdaq jumped 0.88% for the day. Investors seem to expect a soft landing where the economy maintains its growth while inflation cools down to the 2% target. As long as that theme remains the base case, investors are unprepared to pull money out from the markets. - “Clouds are developing in the macro picture, but the glass-half-full mindset of investors continues to drive markets higher,” said Mark Hackett at Nationwide. Mark Hackett at Nationwide (Photo: Nationwide Mutual Insurance) What’s more, there are whispers that the first rate cut could come as soon as this September. We will get June’s nonfarm payrolls this Friday. Economists expect a 190,000 gain with the unemployment rate staying at 4%. These predictions will indicate a cooling economy. - “Given other evidence of a cooling economic backdrop, the payroll report could be increasingly decisive for the Fed as it seeks a rationale to signal an easing of rates,” said Quincy Krosby at LPL Financial. The jobs report will be important because it determines the strength of consumer spending. If consumers feel uncertain about the labor market, they pull back on spending. So, Wall Street wants to see a slight cooldown (rather than a sudden pullback), as it wouldn’t spook consumers as much. Top Fintech Stock To Bet On The Future Of Cashless Payments Today’s Pick: Global Payments Inc. (GPN) Would you like to collect toll booth fees every time a merchant takes a digital payment from customers? Sure, you would. It’s a heck of a business. This is what Global Payments does. They provide payment processing services to merchants, allowing them to accept credit and debit cards. In return, they receive a percentage of the transaction value (usually about 1-2% for credit cards). Heartland, one of Global Payments’ brand (Photo: GP) And Global Payments recently made a critical acquisition that makes its “toll booth” business even more lucrative. In the real estate business, nothing gets real estate agents giddy like “double-dipping” deals where they would represent buyers and sellers. This means that the agent will earn broker commissions from both buyer and seller in a transaction. This rarely happens. But for Global Payments, they “double-dip” the payment fees on a daily basis after acquiring Total System Services: - Global Payments facilitates payments for merchants - Total System Services focuses on payment processing for financial institutions (the cards used by the customers) As a result, Global Payments serves both ends of the transaction -- with 3.5+ million merchants and over 1,300 financial institutions. So, GP has a business model that is famous for producing a compounder like MasterCard that has returned 2,887% since 2009. GP had struck some phenomenal deals for its business. For example, it signed a partnership with Google. GP will handle Google’s payments for their buffet-sized services -- Google Music, Gmail, YouTube, and dozens more. Obviously, this was a game-changing deal for GP and there’s a throw-in bonus from the deal: Google will start referring their enterprise clients to GP in exchange for a revenue share. Let’s imagine if you're a Google customer and you use it to run your business, Google will offer you an integration to a merchant portal with Global Payments. Surely, that will bring tens of thousands of new customers to Global Payments, and that deal is exclusive to GP for the next few years. Another example: GP announced a partnership with Amazon Web Services to provide a cloud-based issuer processing platform to financial institutions. In short, GP is taking payment processing to the cloud. This partnership alone has tripled the company’s total addressable market for two reasons: 1) It allows GP to increase its geographic reach, and 2) target smaller customers for its issuer services. Bet on the future of cashless payment. The more people use cashless payments (credit cards, digital wallets, etc.), the better Global Payments will do. Sure enough, the company had been a reliable growth stock for years. The company posted positive revenue growth in all quarters since 1Q21. (Source: MacroTrends) Bottom line: Global Payments, Inc. is on the right side of the trend. Cashless payments are the future, and this stock is a pure play on fintech. This is a good growth stock to own in a portfolio.   [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](     © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](