CHRIS VERSACE: Good morning, Action Alerts Plus members. It's Monday, November 14. As we kick off the week, we'll continue to approach last week's renewed market optimism with caution. While the rally was welcome news to our holdings, there was plenty of data and far more catalysts to be had before the Fed concludes its next monetary policy meeting in mid-December.

Case in point, over the weekend, Federal Reserve Governor Chris Waller offered some sobering comments about the Fed's roadmap. Quote, "we're at a point, we can start thinking maybe of going to a slower pace. But we're not softening. Quit paying attention to the pace and start paying attention to where the endpoint is going to be. Until we get inflation down, that endpoint is still a ways out there," end quote.

Again, that was Fed Governor Chris Waller. And it really reinforces the notion that the Fed is going to continue to increase interest rates, perhaps at smaller bite sizes. But the reality is it's going to keep the Fed funds rate elevated for a prolonged period of time. Also too let's remember that tomorrow brings the October Producer Price Index. Now, the headline figure is expected to dip to 8.2% down from 8.5% the prior month. But the core EPI for October is expected to be unchanged at 7.2%.

Now, even if we see a softer print, the number is still going to be a ways away from the Fed's target. But if we don't see a similar softening in the data like we did with the October CPI report, something that could likely happen given the comments that we saw in the October and ISM and S&P Global PMIs, we're likely to see rate hike expectations swing back to where they were early last week. That would hit the market, which on a technical basis is already overbought, especially that for the S&P 500.

Ahead of the October PPI report, this has us keeping our market inverse ETF plays in action. Now, on the subject of potential catalysts, let's take a walk down to the Capitol Hill, where Democrats have secured control of the Senate. Our shares of ChargePoint have been volatile of late given concerns over a potential sea change in Washington. But that looks far less likely.

We'd also remind members that the Biden infrastructure law isn't a bill. It is a law. And given the dynamics that are unfolding in Washington, the odds of it being repealed are rather low. Meanwhile, today's edition of the New York Times issued a simply fantastic very bullish article for EV adoption. And we see that as very, very good news and very much thesis confirming the portfolio's positions, not only in Ford, but also ChargePoint as well.

Now, ChargePoint isn't the only position poised-- excuse me-- to prosper from the Biden infrastructure law. We're thrilled with the United Rentals announcement of a $2 billion acquisition of a Ahern Rentals. This simply confirms United's position as one of the largest players in the equipment rental industry and a consolidator in a fragmented industry.

It also is in our view a very smart one given the timing, as it is not only expected to show benefits next year, but it's going to dramatically increase United's footprint as the spigot opens from the Biden infrastructure law. That has us keeping our one rating intact on URI shares. And finally, early this morning, we saw a quarterly results from Clear Secure. Head and shoulders. A simply wonderful report. Top and bottom line beat. Company raised their guidance for 2022.

And the cherry on top was the special dividend of $0.25 per share. The company also reiterated that it's going to be launching its TSA pre-check before the end of this year. And it also touched on new partnerships with Avis and several others, which as members know, one of our key concerns has been the overconcentration in the air travel space for Clear Secure. And this paves the way to reduce that. So we like that quite a bit. And I think when we look at the share price today, clearly the market is seeing what we see in the shares of YOU.

Now, we suspect we're going to see consensus expectations move higher, especially after that bottom line beat for the September quarter. We also have a far more solidified outlook for 2023. That's going to lead us to rethink our $27 price target on YOU shares. And we expect to have far more after we digest the earnings conference call this morning. Thanks for joining us. We'll be back with another rundown tomorrow.