🧢 Jobs report surprises

Good morning investors! This week there will be a lot of focus on reports as investors feel the Fed may delay cuts.

Today we cover:

• The jobs report.

• GameStop goes down.

• Using AI to make money.

Don’t forget to join our Make Money Online webinar scheduled for Thursday, June 13, 8PM.

Hosted by our CEO, Trajan King, a self-made millionaire and a former Wall St. & Silicon Valley financial analyst, the webinar covers several ways to make money online, such as choosing an online career, starting a YouTube channel, selling photos, and more.

📊 Economy and News 

US economy added 272,000 jobs in May

U.S. job growth exceeded expectations last month, with 272,000 jobs added, even as the unemployment rate slightly increased, ending a 27-month streak of sub-4% unemployment.

According to the Bureau of Labor Statistics, May's job gains were significantly higher than April's revised total of 165,000 and surpassed the anticipated 180,000.

The unemployment rate edged up to 4% from 3.9%, marking the first time in over two years that it has risen above 4%.

However…

Full-time employed is down 625K and part-time up 286K. 

Also, the unemployment numbers are nearly always revised downward a few weeks later when no one is looking. What's really happening is the economy is becoming a gig economy with part-time workers, in addition to the most of the FT hiring coming from government hiring, as the government is piling on the debt to increase employment and GDP.

All is not as it seems.

What does it mean? This report highlighted that the overall economy is bringing some surprises. In fact, last week’s gross domestic product report showed a 1.3% annualized rate, down from the 1.6% reflected in the first estimate.

The unexpectedly strong report highlighted that despite some recent softening, the labor market remains robust (largely supported by government spending), supporting economic growth and allowing the Federal Reserve to take a cautious approach in deciding when to lower borrowing costs.

Following the report, financial markets adjusted their expectations for a September rate cut, reducing the probability to about 53% from around 70%, based on rate futures contracts. The likelihood of two rate cuts by the end of 2024 is now seen as roughly even, compared to about 68% before the report.

What’s next? Investors will closely watch this week’s inflation numbers and Federal Reserve meeting for clues on whether the soft landing hopes that drove stocks to record highs are still justified.

Global hits:

• Canada and the ECB (European Central Bank) both cut interest rates by 0.25%. They cut rates at the same time global liquidity (M2 money supply) hit a new high of $94 trillion! We coved how this affects Bitcoin in yesterday’s Pro issue (Hint: it’s very bullish).

• The U.S. added 600,000 new millionaires last year as AI fueled markets.

• Canada's jobless rate ticks up in May, wage growth accelerates too.

• The Covid-19 pandemic worsened a child care crisis, and it’s costing U.S. businesses billions.

Worth checking: Salesforce to open new AI center in London as part of $4 billion UK investment.

📈 Stocks

S&P 500 5,346.99 (-0.11%)
DJIA 38,798.99 (-0.22%)
NASDAQ 17,133.12 (-0.23%)
BRENT CRUDE 79.63 (-0.33%)
* Prices as of Jun 8th, 12:20 AM UTC

Putting an end to the GameStop frenzy?

Keith Gill, widely recognized as “Roaring Kitty” on X and YouTube, and “Deep-------Value” on Reddit, recently hosted his first livestream since the meme stock phenomenon three years ago.

In the livestream, Gill expressed confidence in the video game retailer's transformation under CEO Ryan Cohen, reiterating his previous investment thesis without introducing new reasons for his substantial investment. He also clarified that he had no institutional backers and that his GameStop positions, as shown in his shared screenshots, were his only investments.

During his stream, trading of GameStop shares was halted multiple times. The stock ultimately dropped nearly 40% following the company’s announcement of a significant sales decline in the first quarter and plans to sell more stock.

Despite the downturn, GameStop’s stock price, which hit session lows around $28 per share, remains favorable for Gill to exercise his call options. He holds 120,000 call options for GameStop with a $20 strike price, set to expire on June 21.

Also check: E*Trade is considering kicking the 'meme guru' off the platform.

Good news: FDA approves GSK’s RSV vaccine for high-risk adults ages 50 to 59, expanding shot’s reach.

Surprising: EBay to drop American Express over fees, says customers have other options. Moreover, Norway wealth fund is preparing to vote against Musk’s $56 billion Tesla pay package.

💵 Personal Finance

Let AI help you make money

There are many ways to ride the AI train. You can invest in AI stocks. But, that’s not your only choice. (Also, the popular AI stocks may be overvalued after run ups this year.)

However, it’s also possible to use AI tools to earn money.

AI can be used to multiply your own capabilities, i.e.: save you time, provide you with an “extra set of hands” to get more accomplished, and even help you generate passive income.

In fact, about 45% of Americans would like to use AI to earn a passive income and an additional 8% are already doing so.

Here’s how you can do it:

Use AI to trade stocks

Hedge funds and other trading operations utilize artificial intelligence at a very high level to gain an advantage in fast-moving markets. But artificial intelligence is also widely used in finance and investing because of its ability to process and analyze information from very large data sets. You can now do it too as AI can be used to perform these tasks:

• Artificial intelligence allows investors to efficiently sort through available data and identify stocks with good potential. Robo-advisors like Wealthfront and Betterment automate the traditional process of working with an advisor to outline investing goals, time horizons, and risk tolerances in order to create a portfolio that meets the needs of the investor.

• You can use AI order entry tools to monitor trade entry and exit. This can greatly reduce the emotional aspect of trading. Also, this option isn't new. It has been there for a while. You can use a computer to decide when to buy or sell a stock, which removes the need to keep a constant eye on your portfolio.

There are a number of AI trading tools to choose from, including names like Trade Ideas, TrendSpider, and BlackBoxStocks. Not all might be right for you though.

💰 Be a Better Investor

👩🏽‍⚖️ Legal Stuff
Nothing in this newsletter is financial advice. Always do your own research and think for yourself.

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