Steep declines and a fearful market at the end of the quarter can often lead to liquidations. Needless to say, many expect this week’s market action will yield some fireworks.
Today’s issue includes a Macau casino update, securities fraud, and more news! 📰
Check out today’s heat map:
Only consumer staples (+0.07%) closed green, with real estate (-2.64%) leading lower. 🔻
In international news, the currency craziness continues as the Pound falls to its lowest level in 37 years. Rumors are flying that the Bank of England will step in to raise rates and defend the currency, with the central bank saying it “will not hesitate.” Meanwhile, India’s central bank is dealing with the Rupee hitting all-time lows. 💱
Peloton shares hit a new all-time low as its head of marketing is set to leave the company. 🚳
AMC shares fell 11% after announcing a new distribution agreement to sell up to $1.4 billion worth of “APE” shares. It will use the funds to pay down debt. 🦍
Retailers continue to prep for a difficult holiday shopping season. Macy’s is hiring about half the seasonal workers it did last year, and Amazon is running a second “Prime Day” in October to entice customers. Also, Walmart hopes to entice younger shoppers in the Metaverse. 🛍️
In crypto news, Interpol issued a red notice for Do Kwon. Luna Classic jumped 60% as Binance unveiled a new burn scheme. And the IRS is stepping up efforts to target U.S. taxpayers who failed to report their cryptocurrency transactions. ₿
Other symbols active on the streams included: $TTCF (-5.31%), $GTII (+76.50%), $DWAC (+6.18%), $HKD (+2.22%), $MULN (-14.70%), $AVCT (-8.58%), $APRN (+0.68%), and $LVTX (+97.50%). 🔥
Here are the closing prices:
| S&P 500 | 3,655 | -1.03% |
| Nasdaq | 10,803 | -0.60% |
| Russell 2000 | 1,656 | -1.41% |
| Dow Jones | 29,261 | -1.11% |
Macau casino operators hit the jackpot today after the city’s leader said China would resume an e-visa scheme for mainland travelers and permit group tours. The region is the only place in the country for its citizens to gamble in casinos. The country is aiming to reopen the region for the first time in almost three years this November.
The announcement caught analysts off guard, many of whom expected these measures early next year. This is a major development because mainland gamblers account for around 90% of total casino revenue. 🎰
Progress is unlikely to be in a straight line, but today’s announcement gives hope that things are “returning to normal.”
Melco Crown Entertainment (+25.47%) and several of its peers rose sharply and were trending on Stocktwits today.
Las Vegas Sands (+11.81)
Wynn Resorts (+11.99%).
Company News
New Jersey Deli Serves Up Securities Fraud
Remember the small-town New Jersey deli worth $100 million in the stock market in 2021? You probably don’t because so much crazy stuff has happened since then. However, the Securities and Exchange Commission (SEC) hasn’t forgotten.
Investor David Einhorn unearthed the infamous New Jersey deli in a 2021 letter to clients. The hedge fund titan highlighted that the company was valued at over $100 million despite only having $35,000 in sales. He aimed to highlight the highly irregular market dynamics and warn investors of the danger. ⚠️
Well, roughly eighteen months later, the three men involved in the scheme are facing securities fraud charges, among a host of others.
Allegedly, they began positioning Hometown International as a vehicle for a reverse merger that would yield them a substantial profit. But unfortunately, the company’s listing on the Over-The-Counter (OTC) Marketplace was unknown to the deli owners.
The group faces steep prison sentences and fines for manipulating markets and defrauding investors.
In the meantime, if you hope to get a sandwich from this infamous deli, you’ll be sad to know it’s no longer operating. I guess that means we’ll all have to find our Italian specialties and next big stock market idea elsewhere. 🤷
P.S. here’s the stock chart to remind us all of how silly markets can be.
Bullets
Bullets From The Day:
☄️ Like the movie “Armageddon,” but in real life. Today is the day NASA is launching its Double Asteroid Redirection Test (DART) spacecraft into its target at around 14,700 miles per hour. The test will see if this technology can successfully alter the orbit of an asteroid enough to prevent an emergency where an asteroid is actually going to collide with earth. Unfortunately, unlike the 1998 Sci-Fi/Action thriller, Ben Affleck will not be part of this test. However, you can still watch the whole thing today, beginning at 3 PM PDT. TechCrunch has more.
👮 UK police arrest teenager suspected of Uber, GTA 6 hacks. Two major companies were victims of a hack recently, and the primary subject is a… 17-year-old? The City of London Police confirmed the arrest and said the teenager faces multiple counts of computer misuse and breaches of bail charges. While it’s still under investigation, authorities believe the teenager and others arrested in March are associated with the infamous Lapsus$ hacking group. More from TechCrunch.
📱 India’s GPS law causes a stir. The country’s government is pushing tech giants to make their smartphones compatible with its home-grown navigation system by January 2023. The move is part of Modi’s self-reliance campaign to help ease the country’s reliance on foreign powers for things critical to its economy and infrastructure. However, Samsung and its smartphone industry pers say the Indian system requires extensive hardware changes, requiring a later deadline. Reuters has more.
🔻 Rents drop for the first time in two years. Nationwide rents declined MoM in August for the first time in two years, driven by new apartment construction and weaker consumer sentiment. While the slight move lower is a welcome sign, prices are still sitting near record highs at 23% more than August 2020. Experts believe prices will continue to dip as we head into the seasonally weak fall and winter, though it’s hard to predict given the recent economic volatility. More from Mansion Global.
❌ What happens during a purchase cancellation? In August, 15.2% of home purchase agreements fell through, following a 15.5% figure in July. Average mortgage rates jumped to 6.70%, up from 3.3% at the end of 2021, leaving some buyers without a choice but to back out. But many people don’t understand what that means for their deposit and other aspects of the deal, so it’s essential to understand the process and your specific contract. CNBC has more.
Links
Links That Don’t Suck:
🪐 See Jupiter shine during its closest approach to Earth since 1963 on Monday (Sept. 26)
🤝 Putin grants Russian citizenship to U.S. whistleblower Snowden
🏝️ A new island has arisen in the Pacific following underwater eruption
🌐 Australia flags privacy overhaul after huge cyber attack on Optus
🤔 LinkedIn ran undisclosed social experiments on 20 million users for years to study job success
👂 Bizarre noises take over American Airlines flight intercom
🦠 Viruses may be “watching” you – lying in wait before multiplying and killing