Good MorningEquities went on a wild ride on Wednesday first moving higher, then lower, and then higher again as the FOMC initiates the first interest rate hike in four years. The FOMC raised the benchmark rate by 25 basis points despite calls for a much larger hike. The news that spooked the market is the outlook for rate hikes and inflation, an outlook that now includes as many as seven more interest rate hikes this year and for inflation to remain hot well into 2023. What this means for consumers is higher prices, what it means for businesses is tighter margins and slowly eroding business as prices creep higher.
The risk for the market now is twofold. On the one hand the FOMC is still behind the curve in regards to inflation. This mean's inflation will remain a risk for S&P 500 earnings and will likely cut into the earnings growth outlook for the year. On the other hand, a mere 25 basis points will do nothing to slow inflation and will only spur it to new heights in the near term. IF the FOMC were to actually tackle inflation in a meaningful way they'd be forced to spur a recession in the economy. Featured: Are Illegal Drugs Your Next Big Investment? (UNKNOWN) 
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Pay Attention to Stocks That Are Breaking Out During a Market Correction
With U.S. equity markets off to a shaky start in 2022, it’s safe to say that stocks breaking out to new highs are few and far between. However, that doesn’t mean you have to stick to bottom fishing to find great ... Read the Full Story |
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Politics | | | Stocks reversed an afternoon fade and closed broadly higher Wednesday after the Federal Reserve announced its first interest rate hike since 2018.
As Wall Street largely anticipated, the central bank announced it was increasing its key short-term rate by 0.25 percentage points. The F... Read the Full Story |
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Markets | | |
But short interest makes it difficult to recommend a long position at the moment
Like many direct-to-consumer (D2C) companies, Warby Parker (NYSE:WRBY) was a pandemic winner. D2C companies made their bones by buying online advertising via Meta Platforms (NASDAQ:FB) Facebook platform. This w... Read the Full Story |
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From Our PartnersCanada is already known as a miner's paradise. But British Columbia (BC) is quietly becoming the new copper hotspot. That's because copper is critical to the world's shift to renewable energy. Biden earmarked $226 billion in new infrastructure projects all requiring copper. | | Discover the Opportunities in the New Copper Hotspot |
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Markets | | | The sudden surge in beaten-down equities complicates things for investors that may have been looking to ease back in the market. However, with plenty of geopolitical and inflationary risks ahead, we are far from out of the woods.
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Politics | | | The Federal Reserve launched a high-risk effort Wednesday to tame the worst inflation since the early 1980s, raising its benchmark short-term interest rate and signaling up to six additional rate hikes this year.
The Fed's quarter-point hike in its key rate, which it had pinned near ... Read the Full Story |
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From Our PartnersThis Hawaii-based company has cracked the code to overtake a $35 billion industry. | | | | Continue Reading |
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Politics | | | Ratings agencies say Russia is on the verge of defaulting on government bonds following its invasion of Ukraine, with billions of dollars owed to foreigners. That prospect recalls memories of a 1998 default by Moscow that helped fuel financial disruption worldwide.
Ratings agency Fit... Read the Full Story |
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Politics | | | Russian President Vladimir Putin said Wednesday that the operation in Ukraine is unfolding “successfully, in strict accordance with pre-approved plans” and decried Western sanctions against Russia, describing them as “aggression and war with economic, political, information means.”
A... Read the Full Story |
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Politics | | | Americans who have long enjoyed the benefits of historically low interest rates will have to adapt to a very different environment as the Federal Reserve embarks on a period of rate hikes to fight inflation Read the Full Story |
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Technology design firms Cadence Design (NASDAQ: CDNS) stock has taken a sharp sell-off since hitting all-time highs on Dec. 28, 2021. The IT services provider is diversified throughout the technology sector with services ranging from designing, testing, and verifying semiconductor systems to optic... Read the Full Story |
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Markets | | | Shares of Shoe Carnival (NASDAQ: SCVL) are rocketing higher on a combination of factors that we see driving the price action back to the recently set all-time highs. Not only is there a whopping 16% short-interest and short-squeeze in play but the company’s results and outlook are well above consensus. Read the Full Story |
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Thursday's Early Bird Stock Of The Day Lipocine Inc., a clinical-stage biopharmaceutical company, engages in the research and development for the delivery of drugs for the treatment of central nervous system (CNS) disorders. Its lead product candidate is TLANDO, an oral testosterone replacement therapy (TRT) comprising testosterone undecanoate. The company's pipeline candidates also include TLANDO XR a candidate for oral TRT for once daily dosing, which has completed Phase 2b clinical study; LPCN 1148, an oral prodrug of bioidentical testosterone, being developed for the treatment of cirrhosis, currently under Phase 2 clinical studies; LPCN 1154, An oral neurosteroid, being developed for the treatment of postpartum depression, currently under Phase 2 studies; LPCN 2101, a NAS candidate, for women with epilepsy; and LPCN 2203 for essential tremor. It is also involved in the development of LPCN 1144, an oral prodrug of bioidentical testosterone for the treatment of pre-cirrhotic non-alcoholic steatohepatitis, which has completed Phase 2 testing; and LPCN 1107, an oral product candidate of 17-alpha-hydroxy progesterone caproate product, currently under Phase 3 studies for the prevention of recurrent preterm birth. The company was founded in 1997 and is headquartered in Salt Lake City, Utah. | | View Today's Stock Pick |
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