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- Balancing Serenity and Strategy in Today's Stock Market
For our beach investors… drink a Blue Lagoon and get paid. 1M today could be around an extra 50k in one year with less risk than trading.
These are the best rates you can find in the fixed-income markets:
CDs (New Issues): 5.40% (1-year term)
U.S. Treasury Bonds: 5.23% (1-year term)
U.S. Treasury Zeros: 5.16% (9-month term)
Agency/GSE: 5.57% (1-year term)
Corporate (Aaa/AAA): 5.29% (9-month term)
Corporate (Aa/AA): 5.04% (1-year term)
Corporate (A/A): 6.70% (9-month term)
Corporate (Baa/BBB): 7.76% (9-month term)
Municipal (Aaa/AAA): 4.31% (10-year term)
Municipal (Aa/AA): 4.38% (10-year term)
Municipal (A/A): 4.65% (10-year term)
Taxable Municipal: 5.44% (10-year term)
For our street investors… face the wall with AI sentiment analysis and adjust your trading for Today (May 30, 2023):
$SPY (S&P 500 ETF): Given the reported pre-market trading, where S&P futures are up 0.54%, I'd expect a positive sentiment towards the $SPY today. The news of the debt ceiling suspension deal seems to be well received, creating a favorable investment environment for riskier assets like equities. However, stay alert for any news from the U.S. House Rules Committee discussion or opposition from Republican lawmakers, which could create volatility.
$QQQ (NASDAQ 100 ETF): The optimistic mood around the debt ceiling could stimulate growth-oriented sectors, including technology. Nevertheless, monitor the bond market closely because any dramatic movements might sway investor sentiment towards or away from growth stocks.
$DIA (Dow Jones ETF): Similar to $SPY, the Dow Jones futures are up 0.18% in pre-market trading, which bodes well for $DIA. However, a significant part of the index is made up of energy stocks, which could be impacted negatively if the pessimism seen in the oil markets (Brent and WTI crude prices are down) continues. Keep an eye on any shifts in this sector.
$VIX (Volatility Index): Given the positive sentiment flowing from the possible resolution of the debt ceiling crisis and the falling U.S. Treasury yields, I'd expect a lower $VIX, as these factors might decrease market volatility. However, keep in mind that the deal is not yet final and any uncertainty could lead to a surge in volatility.
SPDR Economy Indexes: The general sentiment seems positive which could be beneficial for most of the sector-specific SPDR ETFs. Pay special attention to $XLE (Energy Select Sector SPDR Fund) due to the mentioned pessimism in energy markets.
Remember, while the news provides a base for our decisions, stay flexible and ready to adapt to new information coming in throughout the day.
Today’s company news. Anything to keep an eye out for? This is not financial advice, just a tracker for you to go into more details. Picks are selected using #AI models:
Nvidia (NVDA): The stock is soaring after stronger-than-expected Q1 results and optimism about the company's opportunities in artificial intelligence (AI). The CEO, Jensen Huang, highlighted that the advent of AI is only in its beginning stages, with much more growth potential in the future. This, coupled with Nvidia's announced collaborations, has made the stock a prominent talking point on social media.
SoFi Technologies (SOFI): The stock has risen following the news about the resumption of US student loan payments in August. As one of the country's most active student loan servicers, SoFi could see loan originations return to pre-pandemic levels by the end of this year. However, note that the stock has been in a downtrend since early February 2023, and would need to overcome several resistance points to start a significant rally.
Palantir Technologies (PLTR): The company announced an AI conference on June 1, 2023, which seems to have driven its stock up. The conference will be opened by CEO Alex Karp, who will discuss the company's AI plans and there will be presentations from potential and current customers of Palantir. This event could potentially create further bullish sentiment for PLTR.
Please do your research before making any investment decisions. This information is not financial advice.
Events
Earning reports:
GameStop Corp. (GME):
The stock is trading at $23.25, down 0.43% from its previous close.
It has a relatively low average trading volume compared to its 90-day average (33.3K vs. 4.5M).
Over the last 52 weeks, the stock has significantly underperformed, showing a decrease of -27.60%.
The equity summary score suggests a bearish sentiment from the 7 firms rating it.
The company is not paying any dividends currently.
The company reported a negative earnings per share (EPS) of -$1.03 and generated $5.9B revenue over the trailing twelve months (TTM).
Institutional ownership is 28.23%.
HP Inc. (HPQ):
The stock is trading at $31.30, up by 1.29% from its last close.
The trading volume is lower than its 90-day average (17.7K vs. 6.1M).
The stock has declined by -14.88% over the last year.
HP has a neutral equity summary score of 4.8 from 8 firms.
The company pays a decent dividend with a yield of 3.35%.
The EPS is $2.51, and revenue is $59.8B for the TTM.
Institutional ownership stands high at 76.97%.
VMware, Inc. (VMW):
The stock is trading at $133.24, having gained 4.21%.
Its trading volume is significantly lower than its 90-day average (2.8K vs. 1.2M).
The stock has shown positive growth over the last year with an increase of 7.14%.
The equity summary score is neutral at 6.4 from 7 firms.
The company does not pay a dividend.
The EPS for the TTM is $3.09, with a revenue of $13.4B.
Institutional ownership is at a moderate level of 46.04%.
Hewlett Packard Enterprise (HPE):
The stock is trading at $15.34, up by 4.57%.
The trading volume is lower than its 90-day average (816.8K vs. 12.4M).
The stock has a positive performance of +1.66% over the last year.
It has a very bullish equity summary score of 9.2 from 8 firms.
The company pays a dividend, yielding 3.13%.
The EPS for the TTM is $0.65, with revenue standing at $29.3B.
It has a high institutional ownership of 81.71%.
Economic events:
FHFA Housing Price Index: This index reports on changes in house prices across the United States. In January 2023, house prices rose nationwide by 0.2 percent from December 2022 and 5.3 percent from January 2022 to January 2023.
S&P Case-Shiller Home Price Index: This index measures U.S. home prices. The latest data available is for February 2023, and the figures for March will be released today. The previous change was a 0.4% increase in home prices2.
Consumer Confidence Index: This measures the degree of optimism on the state of the U.S. economy that consumers express through their economic behavior. The reading for May is expected to fall to 99, down from 101.3 in April.
