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: Trump's New Dollar (Ad) 
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Technology | |
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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From Our Partners | | Futurist George Gilder - who predicted the smartphone years before the iPhone launched - believes today's AI data centers are already obsolete. Three companies are quietly developing a way to process data that could do in minutes what current server farms do in hours, using up to 90% less energy.
Gilder calls it the 'Trillion Dollar Triangle' - and he thinks it could reshape the AI landscape the same way digital streaming buried Blockbuster. | | Discover the three companies behind Gilder's Trillion Dollar Triangle |
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Medical | |
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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Consumer Staples | |
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 was a ... Read the Full Story |
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From Our Partners | | AI doesn't run on chips - it runs on natural gas. Analysts are now tracking roughly 100 gigawatts of new behind-the-meter gas generation lining up behind the AI buildout, and on June 22, one of the world's largest energy companies signed a 20-year, 2.67-gigawatt deal to power a single data-center project.
Ken Griffin has reportedly put more than a billion dollars into this corner of the market. Porter Stansberry has identified two picks-and-shovels plays in AI's power supply, plus 6 stocks to buy and 10 to sell - all detailed in a new documentary. | | Watch the documentary now to see all 16 stock positions |
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Energy | |
The faster they fall, the faster they rise.
Global equity markets are staging an impressive rally this week even as the Russia-Ukraine situation worsens. The rally in U.S. stocks is especially surprising with the Fed set to hike rates for the first time since 2018.
Among the biggest winners of ... Read the Full Story |
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Retail/Wholesale | |
Shoe Carnival Rockets Higher, Short Squeeze in Play
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 ... Read the Full Story |
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From Our Partners | | Nvidia CEO Jensen Huang has logged 42 consecutive sell transactions - not a single buy. Peter Thiel liquidated his entire Nvidia position. SoftBank dumped $5.8 billion. And Michael Burry, who famously predicted the housing crash, is now betting against AI stocks.
But 40-year investment veteran Alexander Green says the insiders are only half right - and that the biggest AI profits may still be ahead, potentially 10X larger, just not from where most investors are looking. | | Watch Alexander Green's private presentation to see where the opportunity is |
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Technology | |
Jabil Pops On Earnings Beat And Outlook, Analysts Are Silent
Jabil, Inc (NYSE: JBL) is benefiting from secular tailwinds and strong demand in all end-markets and that has shares up more than 7.0% following the FQ2 results. The problem, for us, is that price action after the pop is a little beari... Read the Full Story |
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Consumer Discretionary | |
G-III Apparel Pops, Short-Covering Is To Blame
Shares of G-III Apparel (NASDAQ: GIII) popped in the wake of the Q4 earnings report and will likely move higher over the long term. In the near term, however, there is a shadow hanging over the market that will likely cap gains if not drive them bac... Read the Full Story |
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Consumer Discretionary | |
Until the company has a profitable model, GME stock remains overvalued
Approximately a year removed from the “mother of all short squeezes” (MOASS), GameStop (NYSE:GME) remains comfortably above its pre-squeeze level. As I write this, GME stock is trading at $87.05 per share and is s... Read the Full Story |
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Retail/Wholesale | |
When it comes to weathering inflation, location matters
Dollar General (NYSE: DG) is expected to report earnings on March 17 before the market opens. The expectation is for the company to deliver earnings per share of $2.57. Topline revenue is projected to come in at around $8.6 billion.
This... Read the Full Story |
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Energy | |
With its low space requirements and low carbon emissions processing, nuclear energy in the uranium market is a great investment option. But there's no denying the bad taste nuclear power has left in people's mouths (who hasn't heard of Chernobyl?) In addition, nuclear power isn't completely renewa... 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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