. One of the key lessons of investing is that divergences are unhealthy—and will eventually converge, likely in the most painful way. For the past several years, for instance, real estate prices in the supply-crunched Bay Area have been moving upwards by double-digit levels.
| | Good morning. One of the key lessons of investing is that divergences are unhealthy—and will eventually converge, likely in the most painful way. For the past several years, for instance, real estate prices in the supply-crunched Bay Area have been moving upwards by double-digit levels.
With all the Silicon Valley IPO's this year, capital would seem to be flowing into the region with a greater vigor than ever. However, real estate prices have now slowed—with the year-over-year change in median sale price now dropping. Considering how elevated real estate prices in the area got in the first place, the size of the necessary pullback to reach equilibrium is huge—or even more wealth will need to flow in to the region. | | | Was this email forwarded to you? Get your own! Sign up here. | | | | | | | | DOW 26,966.00 | +0.67% | | | | S&P 2,995.82 | +0.77% | | | | NASDAQ 8,170.23 | +0.75% | | | | *As of market close | | • | Stocks quietly rallied Wednesday, ahead of an early close before Independence Day. The Dow and S&P 500 closed at record highs. | | • | Gold was the big winner for the day, up nearly 1 percent, and crude oil hung on to $56 despite a lower-than-expected decline in inventories. | | | | | | US Factory Orders Contract for Second Month in a Row | | | Slight decline tied to drops in defense and Boeing orders. | | United States factory orders fell for a second month in a row, declining 0.7 percent month-over-month in May. This follows a 1.2 percent decline in April.
Year-over-year growth is also down 1.2 percent, the lowest level of orders since August 2016.
The largest factor in the drop was a decline in defense spending and non-defense aircraft spending.
» FULL STORY | | | | | | Tesla Motors Beats Delivery Goals | | | Deliveries beat expectations on Model 3 sales. | | In the second quarter of 2019, Tesla Motors managed to deliver a record number of vehicles, surprising most analysts. This allowed shares to rally on Wednesday.
Overall, the company beat estimates by about 10 percent, and Model 3 deliveries surprised to the upside. Tesla also noted an improvement in its logistics and delivery operations, which helped meet the delivery totals and should drive down manufacturing costs per car.
» FULL STORY | | | | | | | Insider Activity: The Kroger Co. (KR) | | First insider buy at the grocery chain in two years. | | With so much conflicting economic data, investors may be looking for defensive investments. Corporate insider buying in the space is rare, which makes the recent insider buy at grocery chain The Kroger Co. (KR) so interesting.
On July 2nd, director Ronald Sargent bought 5,000 shares, shelling out about $108,000 to add to his stake in the company. All told, he now owns just under 95,000 shares. This is the first insider buy in shares since July 2017.
» FULL STORY | | | | | | Unusual Options Activity: General Electric (GE) | | | Big put option bet indicates decline in shares ahead. | | Shares of General Electric (GE) could be moving down over the summer.
That's based on an unusual bet: a surge in trading on the September $12 put options. Why is this unusual? Because shares are at $10.63, making the trade already in-the-money.
There are a few reasons for this kind of trade. First, being in-the-money, the option should move down penny-for-penny with shares.
» FULL STORY | | | | | | | TOP | | SYMC | 13.575% | | | JEF | 6.42% | | | K | 6.303% | | | CAG | 5.962% | | | LB | 4.2% | | | BOTTOM | | EA | 4.488% | | | RCL | 2.1% | | | NCLH | 1.805% | | | LRCX | 1.245% | | | FCX | 1.223% | | | | | | | Top Rated Technology Stocks | | | | | | | | | The resurgence of IPOs is no flash in the pan, no signal of a bubble re-inflated. Instead, it reflects a shift in the way that investors and entrepreneurs approach company creation, the rich supply of mature companies that have yet to come public, and investors' insatiable hunger for growth stories | - Barron's on the IPO boom this year | | |
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