Wall Street is getting nervous about debt ceiling talks

JOIN OUR LIVE SESSIONS! Our LIVE session starts when the big institutions and elite traders do before the opening bell. We'll look at real-time dark pool data as the market movers position themselves for the trading day in secret off-market exchanges. [JOIN OUR LIVE TRADING SESSION @ 6am PT / 9am ET]( [Shadow] Hello investor, Wall Street largely brushed off the drama about the debt ceiling... until now. The anxiety grew after Speaker Kevin McCarthy left the US Capitol late Tuesday afternoon without any deal with the White House. More importantly, one of McCarthy’s top negotiators said there are no more meetings planned. - “Bottom line is that we’re going to have to see some movement or some fundamental change in what they’re doing,” Republican Representative Garret Graves said of the White House's team. “Right now, we don’t have additional meetings set up.” House lawmakers are preparing to leave Capitol Hill on Thursday for the Memorial Day holiday weekend, so the votes may not happen until next week. Meaning? A deal may not be signed until just a few hours before June 1 deadline arrives. Sure enough, another McCarthy negotiator, Representative Patrick McHenry, said his phone is flooded with concerned texts from Wall Street executives. - “My texts are a dumpster fire,” he said. Representative Patrick McHenry (Photo: AP) JoAnne Feeney, partner at Advisors Capital Management, still doesn’t think there will be a default. We've seen this show before. Both political aisles play hardball until the very last minute where they scramble to make a deal. So, she thinks the true driver of stocks’ valuations will be the economic health. Will we see a recession or not? That’s the ultimate question right now. - “Ultimately, what’s going to drive equity valuations from here is more whether we end up in a recession or not at some point this year, either in the US or globally,” JoAnne Feeney said. New economic data from yesterday showed strength. US new-home sales rose more than expected to a more than one-year high. US business activity also grew in May by the most in over a year. These show that the economy is still running hot, complicating the central bank’s fight against inflation. A pause in rate hike is likely, according to Fed Chair Jerome Powell. But the economy keeps on churning. What will Powell do? Speaking of the Fed Reserve, the minutes from the Fed’s last meeting will be out today. Traders will digest the minutes to get clues on officials’ thinking about a potential pause in rate hikes during the next meeting. The #1 Stock With Every Trait Of A Monster Compounder Today’s Stock Pick: Rush Enterprises, Inc. ([RUSHA]( Rush Enterprises started in 1965 as a single truck dealership in Houston, Texas. And now, it has turned into the largest commercial vehicle dealer group in North America. It is also the #1 dealer group for premium trucking brands -- Peterbilt, Navistar, Hino, and Isuzu. However, there is a sneaky play for this stock. In 2015, Rush made a brilliant move to enter the aftermarket business with the launch of the RushCare portfolio of services. That move paid off like a charm for two reasons. First, like the airline industry, aftermarket parts offer the biggest margins. You can see it in Rush’s financials. Parts and Services accounted for just 33% of its total revenue but made up 62% of its gross profit. That’s how lucrative it is! (Source: Rush Enterprises) RushCare includes some incredible features – such as an ecommerce platform for parts purchasing, a communication system for real-time repair status updates, a dedicated service concierge team and telematics support. And this is where Rush’s biggest advantage comes into the picture. (Source: Rush Enterprises) As the largest dealer group, it has locations all over the country. If a truck has problems, there’s a RushCare center nearby that they can use. This is an H-U-G-E advantage that competitors will have difficult time matching. (Source: Rush Enterprises) This advantage is critical for winning national accounts. Companies with large fleets don’t want to deal with a bunch of different companies to pay repair bills, handle truck maintenance, and so on. With Rush’s size and scale, it can offer all-in-one services to large fleets. - “We can differentiate ourselves on a map because we got a map like no one else in our industry. And regardless of what brand we represent, you're still a Rush customer, and we can service you in ways across a larger map than anybody else. And so that is really the biggest strength in my mind. It's our people is our biggest rate. But at the same time, that map there and us continuing to leverage and go to market as one,” said CEO Rusty Rush. Now for the second reason, the aftermarket business is booming now because of supply chain troubles. Since there are fewer parts, the prices for parts jumped. That shortage may continue in this quarter and beyond. - “…there is still significant demand for new commercial vehicles and aftermarket parts and service, which we expect will continue through the year … we believe our financial results will remain strong for the foreseeable future,” said CEO Rusty Rush. Chairman and CEO Rusty Rush (Photo: Rush Enterprises) Financials: You will love Rush’s economies. Its market cap is at $2.96 billion, and Rush authorized a $150 million share repurchase program in December 2022. That’s about 5% of its market cap. As a bonus, the company offers a 1.57% yield on its dividends. High return business: Thanks to price increases, Rush’s return on invested capital skyrocketed. But it has a track record of high returns. Its ROIC was 18.6% in 2019 – before the pandemic. It had to shut down the business during the lockdown, so its ROIC fell to 14.7% in 2020. Now, it returned to 35.2% in 2022. Will this last? Highly doubtful. But you can bank on the ROIC remaining around 18% level. So, you’ve got a powerful formula – The business can find places to deploy its capital with high returns, and it loves to buy back shares to increase shareholders’ returns. Bottom line: Rush Enterprises’ competitive moat is massive because of its scale advantages. The company is also an acquisition machine that could drive its future growth – along with its ability to generate high returns on capital invested. This stock has all the qualities of a monster compounding stock. FREE LIVE TRADING SESSIONS & TRAINING USING THE MOST COMPREHENSIVE DARK POOL MONITOR AVAILABLE TO THE RETAIL INVESTOR Join our LIVE Trading Sessions throughout the day where we will focus on how you can learn to master the markets through the use of advanced algorithms and AI to trade like the institutions. BEFORE THE BELL Starts 6am PT / 9am ET Our newest LIVE session starts when the big institutions and elite traders do, well before the market opens. We'll look at realtime dark pool data as the market movers position themselves for the tra ding day in the secret off market exchanges. LIVE TRADING SESSION Starts 8am PT / 11am ET Take advantage of Trade Algo's proprietary advanced algorithms for anticipating big market swings in our daily LIVE trading session. Trade Algo's Senior Analyst Luke Russell will walk you through the key tools and strategies that the institutional investors and top traders use to profit from high volatility in the market. THE FINAL HOUR Starts Noon PT / 3pm ET According to Wall Street Journal approximately 20% of the trading volume happens at the last 30 minutes of the day. Institutions make the majority of these trades in private dark pool exchanges -- away from the public’s eyes. The timing happens for two reasons: 1) Index funds make their trades to mimic the closing price of a stock. 2) Billionaires trade near the end of the day because they anticipate major news that will be released during after-hours. Because they trade in dark pools, the public doesn’t know about these trades until one day later. We’ve consistently spotted the correlation between a spike in dark pool volume at the end of the day and the next day’s price movement. In the Golden Hour we will identify and analyze these movements so you can trade with confidence. CATCH THE SPARK Starts 4pm PT / 7pm ET Catch The Spark is led by trading expert Luke Russell, starting at 4pm PT / 7pm ET. Open to all this session is a recap of the day and a prep for the next trading day with an emphasis on identifying and examining "spark" orders, those large institutional trades taking place behind closed doors in off-market exchanges, that drive stock movement. Bring the stock or options trade you've been waiting to make and we'll show you the information the hedge-funds, big institutions and top traders use to evaluate and time the trade. [REGISTER NOW! IT'S FREE]( OR [SCHEDULE A LIVE ONE-ON-ONE DEMO!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](