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Many Americans dream of saving $1 million for retirement. Most fall far short of that. The typical family’s 401(k) and IRA-type accounts come to less than half that goal in the years approaching retirement age.

In theory, that should be welcome news for stocks and other so-called risk assets, which wilted under the barrage of hikes last year. Yet some investors worry this year's 6.5% rebound in the S&P 500 has made equities expensive. Many are also wary that the Fed's rate hikes may precipitate a recession later this year. Stocks fell on Wednesday, with the S&P 500 ending down 0.7%, after the Fed's latest policy decision in which the central bank also raised rates by 25 basis points, as markets expected. Friday's U.S. employment report and next week's consumer price index data may give investors a sense of how deeply the Fed's rate hikes have seeped into the economy.

The off-balance sheet borrowings incurred after fiscal year 2021 will continue to be adjusted over the next three financial years, said one of the sources. However, from here on, any new off-balance sheet borrowings will be adjusted in the same year or the year after they have been incurred, the source added. In one year, the adjustment from borrowing requirements will not be more than 0.25% of gross state domestic product, said a the second source. Reuters GraphicsLower market borrowing by state governments was one factor that helped keep federal government bond yields in check in 2022-2023. State governments also had high cash balances at the start of the previous year, which helped bring down borrowings, said ICRA.

NEW YORK, May 2 (Reuters) - The cost of insuring against further losses in regional U.S. bank stocks stood near a one-month high in options markets on Wednesday, even as shares of lenders saw a reprieve from their recent sell-off. Skew on the SPDR S&P Regional Banking ETF - a gauge of relative demand for puts versus calls - remained elevated, hovering near the highest level since the COVID-19 market slump, data from OptionMetrics showed. The SPDR S&P Regional Banking ETF rose about 1.9% to 39.64 in afternoon trade, though it is down 33% on the year and fell on Monday and Tuesday. "The fact that you didn't see the follow-through from some of these other regional banks, with what would appear to be such great news, really didn't inspire a lot of confidence in some of these regional banks," said Seth Hickle, a derivatives portfolio manager at Innovative Portfolios, referring to JPMorgan’s rescue of First Republic. "The problem with regionals are going to be rising interest rates,” said Matt Amberson, principal at options analytics firm ORATS.

Though stocks remain near their 2023 highs, some investors now believe those factors will soon start taking a greater toll, limiting further upside. The market may be "back in the soup on the banking crisis," said Chuck Carlson, chief executive officer at Horizon Investment Services. Many investors don’t expect that calm to continue, as a battle over raising the $34 trillion U.S. debt ceiling looms. In the six rate-hiking cycles since 1984, the S&P 500 has posted an average three-month return of 8% following the peak funds rate, Goldman Sachs strategists wrote. However, the S&P 500 is already trading well above its valuation at the end of any cycle except the one ending in 2000, when the S&P 500 declined despite a Fed pause, the bank said.

☆ The Next Big Bull Market Could Be Copper
▼ + stars: | 2023-05-02 | by ( Megha Mandavia | ) www.wsj.com time to read: 1 min

The copper wave is coming. Photo: John Moore/Getty ImagesGlencore ’s aggressive pursuit of Canada’s Teck Resources has put a spotlight on the race to secure access to copper. Traditionally seen as a cyclical economic indicator, the metal is also poised to play a key role in the world’s green transition—which is being supercharged by recent legislation, including the U.S. Inflation Reduction Act (IRA), passed last year. Green technologies including electric vehicles and solar panels use more copper than equivalent fossil-fuel-based technologies, and supply growth looks likely to fall far well short of demand over the coming decade.

[1/2] David Hunt President and CEO, PGIM, speaks at the 2023 Milken Institute Global Conference in Beverly Hills, California, U.S., May 1, 2023. As Wall Street money managers, banking executives and pension fund managers gathered at the Milken Institute Global Conference, the main topic over cocktails on Sunday night and in conference rooms the following morning was JPMorgan Chase & Co's (JPM.N) purchase of First Republic Bank. Policymakers, executives and investors at the conference said constrained lending as a result of banking sector regulation could choke off credit to the economy. Nevertheless, betting against bank stocks has been a profitable endeavor this year, which has seen the high-profile failures of Silicon Valley Bank and Signature Bank, in addition to First Republic and a state-engineered rescue of Credit Suisse by the Swiss government. The KBW Regional Banking Index, which fell 2.7% on Monday, is down almost 23.6% year-to-date, while First Republic’s shares are off 97% since January.

If you're spending your extra cash right now, it's a good idea to spend it on personal improvement. But deciding what to do with extra cash shouldn't just be about immediate fun if you can help it. And second, if you put the money in a high-yield savings account, it can earn interest. Let the money earn interestIt might take you some time to decide what to do with extra cash. Certified financial planner Jim Eutsler shared that you can park the cash in a high interest rate environment, such as a high-yield savings account or a CD.

☆ A CFA says you could cost yourself six figures by investing in the wrong type of retirement fund — and explains how to maximize your returns
▼ + stars: | 2023-05-02 | by ( Laila Maidan | ) www.businessinsider.com time to read: +7 min

While most investors focus on finding the right asset allocation for their retirement fund, Baker believes that asset location, or the type of fund you're using, is just as important. Fund fees can eat into your retirement savingsAnother key detail many investors miss is the fees associated with certain retirement funds. "Unless you want to read a 60-page prospectus, it's very difficult to find out what all of these mutual funds cost," Baker said. While you're still too young to adjust how you're allocating to your retirement fund, you may need to consider where you're allocating. If you needed to withdraw your income from your retirement fund last year, you took a loss on those withdrawals, Baker noted.

☆ India's Go First Airways owes financial creditors $798 million - filing
▼ + stars: | 2023-05-02 | by ( Arpan Chaturvedi | ) www.reuters.com time to read: +2 min

MUMBAI, May 2 (Reuters) - Indian airline Go First, which filed for bankruptcy on Tuesday, owes financial creditors 65.21 billion Indian rupees ($798 million), its bankruptcy filing showed. "However, considering the present financial situation of the corporate applicant, defaults to financial creditors would be imminent," the filing said. The filing lists Central Bank of India (CBI.NS), Bank of Baroda (BOB.NS), IDBI Bank (IDBI.NS), Axis Bank (AXBK.NS) and Deutsche Bank among Go First's financial creditors. The airline's total liabilities to all creditors stand at 114.63 billion rupees, the filing shows. The company has defaulted on payments to operational creditors, including 12.02 billion rupees to vendors and 26.60 billion rupees to aircraft lessors.

☆ Buy this renewable energy stock that has as much as 47% upside, UBS says
▼ + stars: | 2023-05-02 | by ( Brian Evans | ) www.cnbc.com time to read: +2 min

UBS is initiating coverage of a key renewable energy company with a buy rating thanks to projects it's involved in that will benefit from the Biden administration's environmental efforts. The firm has a price target of $60 on Ameresco , which represents 47% upside against the stock's Monday closing price of $40.78. Ameresco is a diversified player in the renewable space with projects that range from solar power to landfill gas capture to battery storage. AMRC YTD mountain Shares of energy company Ameresco have declined roughly 18% from the start of 2023. "While this presents a near-term risk for AMRC, we ultimately expect the IRA to drive increased demand and lower project costs."

☆ These 3 clean tech stocks should beat the market the rest of the year, JPMorgan says
▼ + stars: | 2023-05-01 | by ( Samantha Subin | ) www.cnbc.com time to read: +3 min

Investors may want to consider betting on three downtrodden clean technology stocks situated to outperform the market as the year stretches on, according to JPMorgan. But these stocks should benefit from favorable policy tailwinds, analyst Bill Peterson said in a Monday note to clients. Support for hydrogen, electric vehicle charging and batteries following the Inflation Reduction Act should fueled strong demand for these stocks going forward, Peterson said. PLUG YTD mountain Plug Power shares in 2023 So far this year, the stock's tumbled more than 28%. Another name JPMorgan is betting on long-term is ChargePoint as a longer-term clean tech winner.

NEW YORK, May 1 (Reuters) - The weekend rescue of troubled lender First Republic Bank (FRC.N) has done little to allay options traders' concerns about the overall health of U.S. regional banks. Traders who had bought upside calls on regional banks on Friday appeared to be exiting those positions as the regulator-engineered rescue of First Republic failed to catalyze a rally in the mid-cap bank sector. SPDR S&P Regional Banking ETF shares were down 2% at $41.70 in afternoon trading. At the individual stock level, traders were focused on regional lender PacWest Bancorp (PACW.O) on Monday. With PacWest shares down 7%, put options, typically used for bearish bets, outnumbered call options, usually employed for bullish bets, 4-to-1, according to Trade Alert data.

☆ Fact check: Trump’s own campaign can’t find proof for his ‘mental institutions’ immigration story
▼ + stars: | 2023-04-29 | by ( Daniel Dale | ) edition.cnn.com time to read: +5 min

How we searched for proof of Trump’s storyCNN conducted a broad search for any proof for Trump’s story. These articles did not mention anything about South American mental health facilities being emptied under President Joe Biden, nor feature any quote from a doctor at any such facility. We then reached out to a pro-Trump super PAC asking for evidence for Trump’s “mental institution” story, but a spokesperson didn’t respond. We next turned to two groups that advocate for reduced immigration, the Center for Immigration Studies and the Federation for American Immigration Reform, which would be good candidates to be aware of any such evidence. As a last resort, we posted Trump’s quotes on Twitter and invited the public to try to find support for them.

☆ Wall St Week Ahead Recession worries simmer beneath US stock market rally
▼ + stars: | 2023-04-28 | by ( Lewis Krauskopf | ) www.reuters.com time to read: +5 min

NEW YORK, April 28 (Reuters) - Economically sensitive areas of the U.S. stock market are flashing warnings over growth, even as major equity indexes edge higher. Beneath the surface, however, areas of the market tied to economic sentiment such as transports, semiconductors and small-cap stocks dropped in April, while so-called defensive sectors are outperforming. “People are starting to more defensively position themselves,” said Aaron Dunn, co-head of the value equity team at Eaton Vance. "They are talking about demand being down and they are ridiculously important shipping companies,” said Matt Maley, chief market strategist at Miller Tabak. Reporting by Lewis Krauskopf; Editing by Ira Iosebashvili and David GregorioOur Standards: The Thomson Reuters Trust Principles.

NEW YORK, April 28 (Reuters) - Bearish options traders are ramping up bets on further declines in the beaten-down shares of First Republic Bank (FRC.N), though strategists say they could run into trouble cashing in their wagers if the bank goes into receivership. Profitable put options are typically automatically exercised by selling underlying shares - either already owned by the investors or newly purchased - at a profit. But brokers might restrict share sales when a stock is halted, keeping investors from reaping gains. Some traders found this out the hard way when they ran into trouble cashing in bearish options bets on failed lenders SVB Financial Group and Signature Bank. The Options Clearing Corp and brokerages Charles Schwab, Robinhood, Interactive Brokers and Fidelity did not immediately respond to a request for comment.

☆ Take Five: Rate hike vs bank stress
▼ + stars: | 2023-04-28 | by ( ) www.reuters.com time to read: +5 min

The Fed is expected to deliver another 25-basis point interest rate increase on Wednesday and signal a pause in its most aggressive rate-hiking cycle since the 1980s. Futures markets show investors pricing an nearly 90% chance of a rate increase. But confidence in a 25 bps rate hike has wavered in recent days after problems at lender First Republic reignited concerns over the U.S. banking sector. Yet, key inflation and bank lending data releases in the days ahead could sway that outcome. Tuesday's flash April inflation data is likely to confirm underlying price pressures - running above 5% - remains uncomfortably high.

[1/2] Solar panels are built at the QCells solar energy manufacturing factory in Dalton, Georgia, U.S., March 2, 2023. The Inflation Reduction Act, which passed last year without a single Republican vote, is a signature Biden accomplishment and offers $369 billion investment to address climate change. This includes $270 billion in tax incentives. Republicans have portrayed the tax credits as a distortion of the free market that gives unfair advantage to clean-energy producers over fossil fuels. Frisone, of CZAR-Power, said he plans to call Republican officeholders to make his case, adding, "This is a political stunt -- why are we doing it?"

☆ Youth climate activists plan to protest the biggest social event for Washington's political-media class
▼ + stars: | 2023-04-27 | by ( Catherine Boudreau | ) www.businessinsider.com time to read: +5 min

On Saturday, the group plans to blockade the White House Correspondents' Association dinner in Washington, DC. So the White House Correspondents' Association dinner is an appropriate target, Salamon said. The White House did not return requests for comment. Haught acknowledged she had little political choice because GOP candidates have shown paltry interest in prioritizing climate action. "If you're putting your body on the line and risking a record of arrest, that shows you're serious," Haught said.

☆ Analysis: Debt ceiling worries bubble up in US stock options market
▼ + stars: | 2023-04-26 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +4 min

NEW YORK, April 26 (Reuters) - Worries over a debt ceiling showdown are creeping into U.S. options markets, as investors grow increasingly concerned that lawmakers will be unable to hammer out a deal in coming weeks, potentially sparking stock volatility as a key deadline nears. In the options market, however, worries are bubbling as some analysts warn the so-called X-date, after which the government is no longer able to pay all its bills, could come in the first half of June. U.S. Treasury Secretary Janet Yellen on Tuesday warned that failure by Congress to raise the government's debt ceiling - and the resulting default - would trigger an "economic catastrophe" that would send interest rates higher for years to come. AWKWARD TIMINGLegislative standoffs over debt limits this last decade have largely been resolved before they could ripple out into markets. "You are going to have all these fundamental pressures -- and then our friends in Washington aren't going to be able to agree on what to do with the debt ceiling," he said.

☆ Republicans want to cut billions of dollars for energy projects as part of their legislation to raise the debt ceiling
▼ + stars: | 2023-04-26 | by ( Eliza Relman | ) www.businessinsider.com time to read: +3 min

House Republicans want to strip billions of dollars in funding for energy projects as part of their debt ceiling bill. These latest changes are part of a last-minute effort by Republican leadership to get their members on board with a debt ceiling vote. House Speaker Kevin McCarthy insisted on Wednesday morning that the House will vote on the debt ceiling limit on Wednesday, despite several GOP House members publicly voicing their opposition to the legislation. In exchange, it would increase the debt ceiling by $1.5 trillion, or through March 31, 2024, whichever comes first. Whenever Republicans manage to pass their debt ceiling legislation, it'll be just a first step in negotiations with the White House, which is demanding to raise the limit without conditions.

☆ Debt ceiling worries bubble up in US stock options market
▼ + stars: | 2023-04-26 | by ( Saqib Iqbal Ahmed | ) www.reuters.com time to read: +4 min

[1/2] Electric power transmission pylon miniatures and LG Energy Solution logo are seen in this illustration taken, December 9, 2022. LG Energy Solution (LGES) reported an operating profit of 633 billion won ($472.6 million) for the January-March period, up 145% from 259 billion won a year earlier. When asked about rival Chinese battery makers' efforts to enter the U.S. market, LGES Chief Financial Officer Lee Chang-sil said the company would maintain its competitive position in the U.S. LG Energy Solution's revenue for the quarter doubled to 8.7 trillion won, LG Energy said in a regulatory filing. Shares of LG Energy Solution (LGES), carved out of LG Chem Ltd (051910.KS) last year, rose as much as 2.4% in morning trade, outpacing a flat broader KOSPI market (.KS11).

The sale effort comes as Millennium Trust's business is buoyed by higher interest rates adopted by the U.S. Federal Reserve to fight inflation. Credit ratings agency S&P Global Inc said last month the higher rates boost the revenue Millennium Trust receives from allowing customers to borrow against their retirement accounts. Millennium Trust will also entertain the sale of a minority stake to a private equity firm, should an outright sale not be feasible, the sources said. Millennium Trust generates north of $500 million in 12-month earnings before interest, taxes, depreciation and amortization (EBITDA), according to the sources. Raymond James, Parthenon and Millennium Trust did not immediately respond to requests for comment.

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