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The NVIDIA Developer Conference is on this week,
in San Jose, CA. It’s where developers, researchers, creators, IT decision-makers, business leaders, and students gather to learn how to shape our world with the power of AI, accelerated computing, data science, and more. Only (NVDA) could fill a convention center with 18,000 for such an event. Will this mark the drop of the stock, or spur it to new highs?
Bond Investors are Moving Out the Risk Curve.
The U.S. market for one of the riskiest types of corporate debt is resurging this year, as companies cater to investor demand for assets that can lock in high yields for several years ahead of an expected decline in interest rates.
Holders of these bonds, called junior subordinated debt, are among the last to be paid in case of a default and companies can defer interest payments. The word is out: interest rates are falling.
Boeing is Leasing 36 Airbuses,
to meet its own unfilled orders caused by production delays. Another panel fell off an airborne plane last week in Medford, OR. Looking for missing parts has become a regular part of every Boeing landing. This is an act of desperation. Avoid (BA)
Bank of Japan to Cut Interest Rates as Early as April,
bringing to an end a 34-year stimulus program that was a dismal failure. The Japanese yen should rocket, but Japanese stocks not so much.
Google AI to Power Apple’s AI Phones,
sending (GOOGL) shares up 7%. Apple gets a serious bounce too. Expect (AQAPL) to be a full-on AI play by the summer.
The Mad Hedge March Traders & Investors Summit is On!
Attend the Mad Hedge Traders & Investors Summit from March 12-14. Learn from 24 of the best professionals in the market with decades of experience and the track records to prove it. Every strategy and asset class will be covered, including stocks, bonds, foreign exchange, precious metals, commodities, energy, and real estate. Best of all, by signing up you will automatically have a chance to win up to $100,000 in prizes.
Usually, access to an exclusive conference like this costs thousands of dollars. You can attend for free!
To register, please click here.
PPI Comes in Hotter that Hot,
at 0.6%. That was higher than the 0.3% forecast from Dow Jones and comes after a 0.3% increase in January. Stocks dipped for two minutes and then rocketed back up. Bad news is good news. Go figure.
How Does Williams-Sonoma Beat NVIDIA?
Yes, the shares of the high-end houseware retailer have beaten the top graphics card maker. The home goods giant also raised its dividend by 26% and increased its buyback by $1 billion. The stock has been one of the best performers in retail over the past year, up around 140%. But Avoid (WSM).
Weekly Jobless Claims Dip,
to 209,000 from an expected 218,000, and down 1,000 from the previous week. It’s a go-nowhere number.
A Third Starship Launch is On,
after the first two tests blew up. NASA, under a roughly $4 billion contract with SpaceX, plans to use Starship in the next few years to send the first crew of humans to the moon's surface since the Apollo era more than half a century ago. The rocket takes off on Thursday, weather permitting, and is planned to land in the Indian Ocean.
CPI Comes in Hot at 0.4% in February.
YOY inflation crawled up to 3.2% from 3.1% expected. Higher shelter and gasoline prices are to blame. Bonds tank as interest rate cuts get pushed back. So do stocks. The market was ripe for a correction anyway.
Oracle Soars 13% on Earnings Beat,
the company’s cloud services and license support segment, its largest business, saw a 12% increase in revenue. (ORCL) added several “large new cloud infrastructure” contracts during the quarter. The company’s cloud revenue, which is reported as part of the cloud services unit, rose 25% year-over-year to $5.1 billion, Oracle said. Buy (ORCL) on dips.
Next Generation Boeing Delayed Until 2027,
says Delta Airlines, a major customer. The 737-10, Boeing's biggest Max plane with a maximum seating capacity of 230 passengers, is pending certification by the U.S. Federal Aviation Administration (FAA). Expect a hard look. Buy (BA) on the next meltdown.
One Week Power Outage Ends at Tesla Berlin Factory.
Arson is thought to be the cause. Elon Musk appears to be a lightning rod wherever he goes.
Southwest Cutting Flights,
because of the shortage of Boeing deliveries. A hiring freeze is on and losses are expected this quarter, tanking the shares by 8%. Alaska Air (ALK) is also facing challenges, another big Boeing customer. Avoid (LUV) and (ALK).
The Mad Hedge March Traders & Investors Summit is On!
Attend the Mad Hedge Traders & Investors Summit during March 12-14. Learn from 28 of the best professionals in the market with decades of experience and the track records to prove it. Every strategy and asset class will be covered, including stocks, bonds, foreign exchange, precious metals, commodities, energy, and real estate. Get the tools to build an outstanding performance for your own portfolio. Best of all, by signing up you will automatically have a chance to win up to $100,000 in prizes. Usually, access to an exclusive conference like this costs thousands of dollars. You can attend for free! Listening to this webinar will change your life! To register, please click here.
Nonfarm Payroll Report Rose 275,000
in February. The Headline Unemployment Rate rose to 3.9%, a two-year high. The report illustrates a labor market that is gradually downshifting, with more moderate job and pay gains that suggest the economy will keep expanding without much risk of a reacceleration in inflation. These are very Fed-friendly numbers.
AI is Finding New Copper Deposits. KoBold Metals,
a mining startup backed by billionaires including Bill Gates and Jeff Bezos is bullish on the discovery potential of some of the most sought-after energy transition metals. The California-based company says it uses artificial intelligence to create a “treasure map” to help find new deposits of materials such as copper, lithium, cobalt, and nickel. What will they think of next?
Fed to Scale Back Bank Capital Requirements,
according to his congressional testimony on Wednesday. Powell hinted that the government’s plan was in for “broad and material changes,” and that a complete do-over was very possible. Banks shares loved it. Buy (JPM), (BAC), and (C) on dips.
Rivian Shares Soar,
on the news it is halting plans to build a new $2.25 billion factory in Georgia, an abrupt reversal aimed at cutting costs while the company prepares to launch a cheaper electric vehicle. Shifting planned production of the forthcoming R2 model to an existing facility in Illinois will allow Rivian to begin deliveries in the first half of 2026, earlier than expected. Buy (RIVN) on dips.
New York Community Bancorp Bailed Out,
with a cash infusion led by former Treasury Secretary Steve Mnuchin. The shares soared from $2 to $3.41. That takes the heat off the sector….until the next one. The US is shrinking from 4236 to six months. Who says politics doesn’t pay?
Europe Moves Towards Interest Rate Cuts,
igniting a global bond market rally. Staff projections now see economic growth of 0.6% in 2024, from a previous forecast of 0.8%. They presented a more positive picture of inflation, with the forecast for the year brought to an average of 2.3% from 2.7%. Market bets increased on rate cuts taking place as early as June, with the euro trading 0.35% lower against the British pound following the news.
Beige Book Comes in Moderate,
saying "labor market tightness eased further," in February but noted "difficulties persisted attracting workers for highly skilled positions." The Beige Book is a review of economic conditions across all 12 Fed districts. Fed Chair Jerome Powell Congress on Wednesday that the U.S central bank expected "inflation to come down, the economy to keep growing," but shied away from committing to any timetable for interest rate cuts.
NVIDIA Insiders Sell $180 Million Worth of Stock.
It’s easy to do when your average cost is 25 cents. The sales come amid a blistering rally for Nvidia that’s seen the stock soar 79% this year on optimism that brisk sales of its chips used for artificial intelligence computing will continue unabated. Buy (NVDA) on dips.
Weekly Jobless Claims Come in Flat.
The number of Americans filing new claims for unemployment benefits was unchanged last week as the labor market continued to gradually ease. Claims remain near historically low levels despite high-profile layoffs at the start of the year. Employers are generally reluctant to let go of their workers after struggling to find labor during and after the pandemic.