Author: Money Mechanics

As earnings season heats up, market participants are closely watching the Magnificent Seven (Mag7) stocks for signs of volatility and directional momentum. With upcoming earnings reports, options pricing reveals heightened expectations for post-earnings moves.Heavyweights Set to Drive Market Volume and VolatilitySix of the seven Mag7 companies reported earnings at the end of July — Google and Tesla reported on July 23, followed by Meta, Microsoft, Apple and Amazon the following week. Nvidia does not report earnings until late August.Options on the Mag7 make up about 25% of the single stock option volume daily. There are 8 million Mag 7 options…

KEY TAKEAWAYS Federal Reserve Chair Jerome Powell pointed toward a potential interest rate cut at the central bank’s next meeting in September.However, it is not a sure thing as Fed officials are still debating if it should address tariff-related inflation by keeping rates where they are or the slowing labor market by cutting rates.If the Fed does deliver a rate cut next month, it would lower borrowing costs on many loans and potentially speed up the labor market. But consumers should lock in high yields on investments before banks lower them. Federal Reserve Chair Jerome Powell says the central bank…

KEY TAKEAWAYS Lucid said it will proceed with plans for a 1-for-10 reverse stock split, as the unprofitable EV startup looks to boost its share price.The stock has lost nearly a third of its value so far this year amid worries about its outlook and expiring EV tax credits.  Earlier this month, the company cut its 2025 production guidance. Lucid Group (LCID) said it will proceed with plans for a 1-for-10 reverse stock split, as the unprofitable EV startup looks to boost its share price. In a reverse stock split, a company cuts the number of its outstanding shares and increases the per-share…

A strong rally erupted on Friday on Wall Street shortly after Federal Reserve Chair Jerome Powell delivered a notably dovish message during his highly anticipated speech at Jackson Hole. Powell said the Fed is prepared to adjust its policy stance—a clear nod to potential interest rate cuts—in response to the sharp cooling in the labor market. He also adopted a more tolerant tone on inflation risks stemming from trade tariffs, saying the Fed’s base case assumes these would result in one-off price increases, not a sustained inflation surge. It was party time for markets. Every sector in the S&P 500…

 In your recent TradeTalks interview, you highlighted how RIAs are focused on how private data and client information is stored. Can you share what Golsan Scruggs does in the event there is a data breach?  This is where the rubber meets the road. We are often the first point of contact for an insured RIA once a breach is discovered. Typically, an insurance company representative then begins working the claim as the “breach coach.” Our job becomes oversight and monitoring of the claim to ensure it is being properly adjusted and addressed by the insurer. Having been through dozens of…

Key Takeaways Crypto market traders were positioned for Jerome Powell to be hawkish in a highly anticipated speech, but they were pleasantly surprised as the Fed chief suggested rate cuts could be coming soon.Prediction markets bettors now place higher odds of a quarter percentage rate cut in September than they did prior to the speech.Bitcoin and proxy stocks such as Strategy and Coinbase also surged as the prospect of lower interest rates revived investors’ appetite for risk. Crypto investors cheered after Federal Reserve Chair Jerome Powell’s speech in Jackson Hole on Friday, latching onto the possibility of a rate cut…

With Jackson Hole this week, we are seeing a lot of news regarding the FED. Most FED officials highlighted inflation risks as outweighing concerns over the labor market at their meeting last month. This is a direct result of tariffs fueling a growing divide within the central bank’s rate-setting committee. Officials have acknowledged worries over higher inflation and lower employment, but a majority of the 18 policymakers in attendance “judged upside risk to inflation as the greater of these two risks.” With this said, all eyes/ears will be on Powell’s speech this Friday. With today’s (8/21) Jobless claims numbers out,…

While this isn’t exactly the conversion of Saul on the road to Damascus, I came to a realization recently that subtly changes the way I look at the potential for large cryptocurrencies, such as Bitcoin. Historically, my attitude has been dismissive about the value of bitcoin itself. While I recognize the amazing reach of blockchain technology and the genius of using asymmetric key cryptography to secure the public record of private transactions, I’ve always thought that bitcoin didn’t really achieve the promised goal, which was to be a better money than fiat dollars. After all, bitcoin is not backed by…

Key Takeaways Federal Reserve Chair Jerome Powell opened the door for the central bank to cut interest rates in September, but stopped short of indicating it’s a sure thing.With risks of a job market downturn rising, central bank policymakers “may warrant adjusting our policy stance,” Powell said in a major policy speech in Jackson Hole, Wyoming.The Fed has kept rates high to fight inflation, which is still rising further from the Fed’s goal of a 2% annual rate, but Powell said the risks to the job market may require the Fed to cut rates anyway. Lower interest rates are looking…

Semtech Corporation SMTC will release financial results for the second quarter after the closing bell on Monday, Aug. 25.Analysts expect the Camarillo, California-based company to report quarterly earnings at 40 cents per share, up from 11 cents per share in the year-ago period. Semtech projects to report quarterly revenue at $256.06 million, compared to $215.35 million a year earlier, according to data from Benzinga Pro.On May 27, Semtech posted better-than-expected first-quarter results.Semtech shares rose 1.9% to close at $49.39 on Thursday.Benzinga readers can access the latest analyst ratings on the Analyst Stock Ratings page. Readers can sort by stock ticker,…