💸 No More T-Bill and Chill

Plus, ready, set, renew! A digital transformation promises to speed up your travels.

September 19, 2024

Happy Thursday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

  • 🟩 | US stocks rose on Thursday, with the Dow Jones rising 522 points (1.3%) to surpass 42,000, the S&P 500 climbing 1.7% to break 5,700 for the first time, and the Nasdaq rising 2.5% as traders reacted positively to the Federal Reserve's half-point interest rate cut announced on Wednesday.

  • 📈 | One Notable Gainer: Edgewise Therapeutics' shares surged 55% following the announcement of positive trial results for a heart disease treatment.

  • 📉 | One Notable Decliner: Progyny's shares dropped 33% after the fertility benefits provider announced the loss of a major client.

  • 💸 | Tomorrow's Trade: No More T-Bill and Chill. Scroll down for more.

Plus, today’s partner wants to help unlock America’s uranium potential. Click here to get access to a free special report today…

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SPONSORED & WRITTEN BY PREMIER AMERICAN URANIUM

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As global energy demands rise and the U.S. seeks reliable domestic supply sources, the value of uranium is set to soar.

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S&P 500 Heatmap. Credit: Finviz

All Stock Heatmap. Credit: Finviz

Global ADR snapshot. Credit: Finviz

MARKET MOVERS

DRI (+8%) Olive Garden parent Darden, Uber stocks pop after delivery deal announcement (Yahoo Finance)

MBLY (+15%) Mobileye’s stock surges as Intel gives this reassuring sign (MarketWatch)

TSLA (+7%) Tesla Stock Is Soaring. Why Rate Cuts Matter for Car Makers—and More for Tesla. (Barron’s)

DASH (+4%) DoorDash has underappreciated tailwinds - BTIG (Investing.com)

BABA (+5%) Alibaba Stock's a Strong Buy After Open-Source AI Reveal (Kiplinger)

OVERHEARD ON THE STREET

CNN: Amazon is raising wages by at least $1.50/hour for over 800,000 US workers and offering free Prime memberships amid a tight job market.

WSJ: Boeing announced it will furlough white-collar workers weekly during the union strike to cut costs and avoid credit downgrades.

CNBC: JetBlue announced plans to open its first airport lounges at JFK in late 2025 and in Boston, targeting high-spending travelers.

QZ: Frontier Airlines flight attendants have overwhelmingly voted to authorize a strike, giving their union the power to set a deadline.

Axios: YouTube enhances its platform with AI tools to streamline content creation, reinforcing its lead in user-generated video amid TikTok's challenges.

TOMORROW’S TRADE IDEA, TODAY

No More T-Bill & Chill

Cash Isn’t King?

For a long time, investors have been able to earn a solid return by simply letting their assets sit in cash and cash equivalents due to high interest rates. The saying became, “T-Bills and Chill,” which deserves no comment.

Considering money market funds, T-Bills, and other short-term plays were essentially a “risk-free investment”, it's easy to see why investors were drawn to this strategy. But something interesting was happening ahead of this week’s big event.

The Great Rotation

Yesterday, the central bank announced its first rate cut in four years, and a super-sized one at that, slashing its benchmark rate by 50 basis points.

Ahead of the announcement, there was a rotation taking place. More specifically, investors were exiting some of these cash positions and looking for exposure to other segments of the fixed-income market.

Although cash returned a solid 9% between the end of 2022 and August of this year, it would have underperformed some of its piers. Investment-grade bonds posted a 12.3% return during the same period. Meanwhile, “junk bond” returns came in at 20.6%.

Bringing Back Price Volatility

In recent statements, Gene Tannuzzo, global head of fixed income at Columbia Threadneedle Investments, said, “As short-term yields come down, it changes the shape of the yield curve." This in turn can make longer-term fixed income more attractive.

Zooming out, Tannuzzo expects slightly more volatility in debt securities like investment-grade bonds, mortgage-backed securities, and municipal bonds. And to investors of a certain persuasion, more volatility can mean more buying opportunities.

Are you bullish or bearish on debt securities over the next 12 months?

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SPONSORED & WRITTEN BY PREMIER AMERICAN URANIUM

Did you know that over 85% of the world's uranium production comes from just six countries?

As global energy demands rise and the U.S. seeks reliable domestic supply sources, the value of uranium is set to soar.

With increasing focus on clean energy and national security, uranium is emerging as a critical player in the future energy landscape. As supply tightens and demand grows, we could be on the brink of significant market movements.

Premier American Uranium is at the forefront of this dynamic market. With their bold expansion strategy, they are strategically positioned to lead in uranium production. Their extensive land holdings in key uranium-producing regions and their commitment to developing new sources make them a standout in the industry.

Don’t let this opportunity pass you by!

Click the link below to learn more and secure your place in this promising market.

ON OUR RADAR

AP: The Bank of England held its main interest rate at 5%, citing persistent inflation concerns, despite a significant U.S. Fed rate cut.

CNBC: Amazon launched Amelia, a beta AI assistant for U.S. third-party sellers to streamline account issues and access sales data.

QZ: In the first half of 2024, Netflix viewers watched 94 billion hours, a nearly 5% increase, as the company explores live sports and ads.

Axios: The State Department is digitizing passport renewals to reduce wait times and improve efficiency, moving beyond the outdated paper-only process.

QZ: United Airlines' CCO predicts a permanent shift away from pre-pandemic corporate travel, focusing more on leisure customers amid cautious business spending.

YESTERDAY’S POLL RESULTS

🟩🟩🟩🟩🟩🟩 🐂 Bullish

🟨🟨🟨⬜️⬜️⬜️ 🐻 Bearish

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