In the late 1990's, many a company could go public by slapping the suffix "dotcom" after their name—and find plenty of investors willing to pile in millions of dollars. Many of those companies suffered from a high rate of cash burn...
 | |  Good morning. In the late 1990's, many a company could go public by slapping the suffix "dotcom" after their name—and find plenty of investors willing to pile in millions of dollars. Many of those companies suffered from a high rate of cash burn, going through more money than they could bring in, leading to their eventual bankruptcy and a total wipeout for those tech bubble investors.
Today, one big money-losing operation even admitted before going public that it may never reach profitability—although it hopes to, of course. That company is Uber, the revolutionary rideshare firm that's destroyed the traditional taxi industry and given rise to the "gig economy." Bringing in $3.16 billion in the second quarter, the company managed to lose $5.2 billion. To update the old joke about car manufacturers: the company loses a little money on each fare—but it makes up for it on the volume. | | | | | |
| | | It's Trivia time! It's Trivia time! Join the fun and win a $20 Amazon Gift Card! The Federal Reserve is set to cut interest rates one quarter point. Since the 1950's how many times has the Fed started an interest rate cut cycle;and out of those, how many have led to a recession anyway? To participate, just reply to this email within the next 48 hours only with your answer.One winner will be selected on Monday, August 19th. #Happytrading | | | | | | |  | Congrats to last week's winners:
Fred S Jr. | Answer:
Kemmerer, Wyoming | | |
| | |  | DOW 26,287.44 | -0.34% | | | | S&P 2,918.66 | -0.66% | | | | NASDAQ 7,959.14 | -1.00% | | | | | *As of market close | | | • | Stocks declined on Friday, as President Trump indicated no sign of a trade deal with China. Shares closed well off their lows, and the Dow briefly hit positive territory. | | | • | Oil rallied 3 percent, closing over $54 per barrel. | | | • | Gold held steady just over $1,500 per ounce, and major cryptocurrencies slid. | | | |
| | | PPI Data Shows First Decline Since 2017 | | | | Producer Price Index data for July showed the first downturn for the index since early 2017. With a drop of 0.1 percent month-over-month for the Index less food and energy, against an expected rise of 0.1 percent, the data shows that inflation rates and expectations remain low.
The full index indicates a potential year-over-year rise in PPI at 1.7 percent, well below the 2 percent inflation rate that policymakers have targeted in recent years.
» FULL STORY | | | | |
| | Copper Hits Two-Year Low on Trade War Fears | | | | Copper prices have been declining lately, as slowing global economic growth have weighed on the metal's price. The recent surge in trade war fears have driven prices to a two-year low of $2.53 per pound, well below $3 per pound, a price where most long-term mining operations for the metal are economically viable.
Should prices continue to slide, or stay below this price, a shortage may develop in the near future as reduced supply comes to market.
» FULL STORY | | | | |
| | Insider Activity: JPMorgan Chase (JPM) | | | | On Thursday, August 8th, Mellody Hobson, a director at JPMorgan Chase (JPM), bought 18,200 shares, increasing her stake to just over 101,300 shares. The total cost of this latest buy came in at just over $2 million.
Hobson has been a repeat buyer of shares this year, buying 19,700 shares back in April. Many insiders at the big bank have been sellers of shares this year, although at higher prices than where shares currently trade.
» FULL STORY | | | | |
| | | | Unusual Options Activity: General Electric (GE) | | | The highest-volume option trade on Friday occurred in an unusual trade based on shares of General Electric (GE). The January 2020 $6 call options saw a surge in volume. With shares over $9, these options are about 50 percent in-the-money.
If GE shares rally, the option should move higher penny-for-penny. If shares drop, they could still have some value at expiration.
» FULL STORY | | | | |
| | | | TOP | | | AMGN | 5.949% | | | | NWS | 5.314% | | | | NWSA | 5.142% | | | | MKTX | 2.778% | | | | CME | 2.189% | | | | BOTTOM | | | DXC | 30.474% | | | | NKTR | 29.253% | | | | MAT | 15.786% | | | | KHC | 6.095% | | | | CPRI | 5.17% | | | | | PFE
| | |  | | The bounceback plus the monetary response have combined to create a Pavlovian response to risk. If there is a shock, central banks will step in; if there is a dip, momentum buyers will emerge. Put the two together and risk is priced out before it can be priced in. | - The Financial Times on the propensity of markets to respond to risk with mild selloffs before heading higher  | |
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