😶Is the Market Finally Pricing in a Debt Cliff Shock?😶

Good morning. Last week, Treasury Secretary Janet Yellen warned that the measures... 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. [Trading Tips] Good morning. Last week, Treasury Secretary Janet Yellen warned that the measures underway to preserve cash at the US Treasury were likely to run out in mid-October. Unless Congress acts to raise the debt ceiling, there could be a potentially debt cliff where a number of government programs simply don’t get paid. That’s a scenario that nearly unfolded in 2011. 10 years ago, it also provided the stock market with a flat return for the year and a closest thing to a selloff since the housing crisis two years before that. Last week’s market weakness may be starting to reflect the increasing likelihood of this scenario playing out, while Congress talks infrastructure spending and the President is focused on increasing vaccine mandates rather than focus on the debt cliff. Those polices may change on a market selloff, but it may also take a market selloff for that to happen. It’s just another reason to be more cautious than usual in the weeks ahead. Now here's the rest of the news: Sponsored Content [The 32-Second Options Trading "Training Video" Retirees Can't Get Enough Of]( Options expert Jeff Clark is on a mission to show every American at or near retirement how easy it is to trade options. [Watch his 32-second options trading "training video" here.]( MARKETS DOW 34,607.46 -0.78% S&P 4,458.55 -0.77% NASDAQ 15,115.49 -0.87% *As of market close • Stocks slid lower on Friday, once again closing near their lows of the day. • Oil rose 2.2 percent, closing at $69.65 per barrel. • Gold declined 0.6 percent, last going for $1,790 per ounce. • Cryptocurrencies slightly declined, with Bitcoin at $45,699 at the stock market close. Today’s TOP TIPS [The Hardware Behind This New Megatrend Is Here]( There are a number of big-picture trends likely to play out over the next decade. One of the more interesting is the evolution of social media from websites into a veritable “metaverse.” That’s a plan that Facebook (FB) in particular is looking at. The company has just unveiled its Smart Glasses hardware. The device can work with integrated-reality software to create an immersive viewscreen that can likely make a future metaverse interface possible. » [FULL STORY]( [Insider Trading Report: West Bancorp (WTBA)]( Patrick Donovan, a director at West Bancorp (WTBA), recently added 5,000 shares. The buy increased his stake by over 18 percent, and came to a total price of just under $150,000. This is the third buy from the director so far this month, with two buys of 2,500 shares each, for a total of 10,000 more shares this month. Insiders have overall been active over the past three years, but buyers have far outpaced sellers. » [FULL STORY]( [Unusual Options Activity: Discovery (DISCK)]( Shares of media firm Discovery (DISCK) have been trending down over the last month. However, one trader sees the potential for a big return over the next year. That’s based on the January 2023 $40 calls. With 494 days until expiration, over 5,000 contracts traded, a 12-fold rise in volume from the prior open interest of 407 contracts. The buyer of the calls paid about $2.08 to make the trade. » [FULL STORY]( IN OTHER NEWS • [Housing Markets Shift as Remote Working Conditions Continue]( A number of smaller housing markets are experiencing a big boom, as workers with the ability to perform remotely continue to leave higher cost of living cities and area. One boom town is Boise, Idaho, which is seeing rapid growth thanks to an exodus of tech workers from the West Coast. • [Producer Inflation Rises 0.7 Percent in August]( The producer price index, a measure of inflation for those who take raw goods and create finished products, rose 0.7 percent in August from the prior month. That’s larger than expectations for a 0.6 percent increase. The index is now up 8.3 percent from a year ago, the largest increase since the index was created in 2010, and a sign that inflation continues to persist. • [Yahoo Poaches Tinder’s CEO]( Apollo Global Management (APO), which recently bought web portal Yahoo for $5 billion, has now poached Jim Lanzone to be the company’s new CEO. Lanzone was previously the CEO of Tinder, where he revamped the website during the pandemic. Yahoo is looking to improve its user experience. • [Hurricane Ida Adds to Car Market Shortage]( Flooding damage from Hurricane Ida has led to the damage or destruction of thousands of cars in is path. That’s adding to supply chain shortages already impacting the automotive industry, and could continue to keep used car prices selling well above their book value for some time to come. • [Microsoft Acquires TakeLessons to Expand into Edtech]( Tech giant Microsoft (MSFT) has noted that its Teams platform has seen nearly 100 million students during the pandemic. Now, the company is looking to keep that demographic by investing more in educational technology, or edtech. The company has acquired startup TakeLessons, a platform for students and tutors, for an undisclosed amount. S&P 500 MOVERS TOP NOV 2.909% UPS 2.249% GM 2.21% ATVI 2.037% EA 1.982% BOTTOM KR 7.501% AAL 6.188% PENN 4.909% UAL 4.809% DVA 4.679% Quote of the Day New highs in the market are not an issue as long as they are supported by fundamentals. The biggest driver behind stock returns this year has been earnings, with a capital E. This is consistent with one of our key themes over the past year, that the earnings power of corporate America was underappreciated. - Keith Lerner, co-chief investment officer at Truist, on why the stock market is likely to trend higher thanks to stronger earnings. Sponsored Content [The 32-Second Options Trading "Training Video" Retirees Can't Get Enough Of]( Options expert Jeff Clark is on a mission to show every American at or near retirement how easy it is to trade options. [Watch his 32-second options trading "training video" here.]( Not sure the best way to get started? Follow these simple steps to hit the ground running. › Step #1 - Get These FREE Reports: [Warren Buffett's Top 5 Stocks]( | [10 Great Stocks Under $10]( | [7 High Yield Dividend Stocks]( › Step #2 - Join Our Premium Advisory: [The Next Superstock]( › Step #3 - Claim Your Free Copy Of: [Big Book Of Chart Patterns]( | [How to Trade Weekly Options For Weekly Income]( Nothing in this email should be considered personalized financial advice. ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment. 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