Good morning. With the market still wary about rising Treasury yields or the potential drop in...
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. With the market still wary about rising Treasury yields or the potential drop in China, there are plenty of other potential factors that could weigh on the economy right now. One of the least talked about is energy prices. Oil prices are on the rise, bucking a seasonal trend. Natural gas prices tend to rise in the winter, and could surprise to the upside if the weather is colder than usual. Higher energy prices drive up transportation costs, an area already impacted thanks to higher inflation rates over the past year. But higher prices, particularly at the gas pump, act as a tax on consumers, and one that hits heavily on lower-income earners. Higher energy prices could easily impact consumer spending into the holiday season, which could be worse for the markets than any geopolitical event right now. Now here's the rest of the news: Sponsored Content [Why Are Thousands of Brand-New Ford Trucks Parked Here?]( [Click Here to Find Out.]( MARKETS DOW 34,390.92 +0.27% S&P 4,359.49 +0.16% NASDAQ 14,512.44 -0.24% *As of market close • Stocks traded mixed on Wednesday, with tech continuing to drop. • Oil dropped 0.8 percent, closing at $74.71 per barrel. • Gold declined 0.7 percent, last going for $1,725 per ounce. • Cryptocurrencies dropped, with Bitcoin at $41,229 at the stock market close. Today’s TOP TIPS [Credit Card Firms Are Jumping into the Hottest Trend in Fintech]( Fintech has been supplanting traditional sources of finance and lending in the past few years at a rapid rate. One of the fastest-growing subsets is the BNPL, or buy now, pay later service. Replacing layaway plans and traditional credit measures, the industry is adapting to the rapid growth of this niche, which went from $3 billion in 2019 to nearly $40 billion in 2020 just in the US alone. » [FULL STORY]( [Insider Trading Report: Gulfport Energy Corp (GPOR)]( Silver Point Capital, a major owner of Gulfport Energy Corp (GPOR), recently acquired an additional 22,000 shares. The buy increased the fund’s stake by nearly 0.25 percent, and came to a total purchase price of $1.75 million. This is the fourth buy from the fund since June, totaling nearly 450,000 shares. In the time the fund has been buying, shares have moved up nearly 35 percent. » [FULL STORY]( [Unusual Options Activity: Bank of America (BAC)]( Shares of megabank Bank of America (BAC) hit a new 52-week high this week, even amid the latest market volatility. One trader sees the move higher, just a hair above the price the stock hit in June, as a sign that shares may be due for a drop. That’s based on the October 1 $43 puts. Expiring tomorrow, over 8,300 contracts traded compared to a prior open interest of 309, for a 27-fold jump in volume. The buyer of the puts paid $0.48. » [FULL STORY]( IN OTHER NEWS • [Pending Home Sales Rebound]( Signed contracts to buy an existing home jumped 8.1 percent month-over-month in August. That’s against expectations for a 1 percent rise. This is a strong rebound following drops in June and July. Signings are still down 8.3 percent compared to a year ago, but this may indicate that the housing supply crunch is lessening. • [Banking System Prepares for US Government Default]( Jamie Dimon, CEO of JPMorgan Chase (JPM) states that his bank is preparing for a potential US default. Such a default would impact financial markets, America’s credit ratings, and could otherwise wreak havoc. However, Dimon is quick to point out that he expects Congress to fix the issue, even as it gets down to the wire. • [The Next Sign of Inflation: Dollar Stores]( Citing higher shipping and wage costs, Dollar Tree (DLTR) is the first dollar store to state that it plans to start selling items above $1.00, citing a $1.25 or $1.50 price range to start. That’s a sign that inflation is here to stay, whether driven by the costs of supply chain and logistics issues or not. • [Goldman Sachs Lowers China’s Growth Forecast to Zero]( Investment bank Goldman Sachs (GS) is lowering its growth forecast on China to zero for the third quarter of the year. The main issue is the country’s current crunch in power production, which is leading to a number of factory shutdowns, adding to global supply chain issues. • [YouTube Announces Ban on Vaccine Misinformation Content]( YouTube, owned by Alphabet (GOOG), has expanded its guidelines for banning content regarding the spread of misinformation with the goal of combating issues about vaccine safety. Previously, a ban on such content was specific to coronavirus vaccines. S&P 500 MOVERS TOP DLTR 16.493% XEC 4.028% LLY 3.962% COG 3.873% BA 3.493% BOTTOM JD 4.946% GNRC 4.24% PENN 4.123% HPQ 4.094% ASML 3.585% Quote of the Day If interest rate increases moderate from here on the back of declining inflation expectations, then it wouldn’t surprise me to see the market resume its march higher as we move into the fourth quarter. - Brian Price, head of investment management for Commonwealth Financial Network, on how the market will likely respond with a continued rally if bond yields stop rising from here. Sponsored Content [Why Are Thousands of Brand-New Ford Trucks Parked Here?]( [Click Here to Find Out.](
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