Good MorningEquities wobbled on Tuesday as investors prepare for what could be a game-changing CPI read for the FOMC. Today's read laps the onset of high inflation for the first time and is expected to rise another 8% YOY. At this pace, the FOMC almost has no choice but to raise interest rates aggressively and possibly by 75 basis point increments. The next FOMC isn't until June but there is a high expectation for another 50 basis point hike and a slim chance for a larger 75 basis point hike. The next hurdle for the market after the CPI will be the PPI data on Thursday and it, too, is expected to be hot.
The takeaway is that inflation is still on the rise and cutting into corporate profits. S&P 500 companies have been able to maintain their margins so far via price hikes but consumer push-back has begun. With earnings coming under increasing pressure and the FOMC in danger of stalling the economy, there is a real danger for corporate earnings growth to stagnate and the S&P 500 to enter a deeper correction.
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Finance | |
Regional bank and financial services company Fifth Third Bancorp (NASDAQ: FITB) stock has been plunging with the benchmark indices. The bank was selected as one of Ethisphere’s “World’s Most Ethical Companies” for the third year. The Company has achieved the lowest CRE and ... Read the Full Story |
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From Our Partners | | The four largest gold miners are generating record free cash flow, even with gold pulling back from recent highs. Margins as high as 75 percent make this the most profitable stretch in their history.
Yet junior gold miners, the prime buyout targets for these cash-rich majors, are still priced as if gold were stuck at 1800 dollars an ounce instead of today's levels.
Analyst Garrett Goggin calls this the Golden Anomaly, a gap he says rarely lasts long once a gold bull market gets going. | | See the junior gold miners poised for a major buyout wave |
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Markets | |
TWNK stock has sound fundamentals and continues to grow market share
When I was first looking around for stocks to put on my watchlist, Hostess Brands (NYSE: TWNK) wasn’t one that came to mind. TWNK stock is up over 100% since the start of the pandemic. Most of that growth occurred in 2021... Read the Full Story |
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Industrials | |
XPO Logistics Moves Up On Strong Results And Guidance
XPO Logistics (NYSE: XPO) has been working hard on a transformation plan that is guaranteed to deliver results for investors. To put it simply, the company is divesting itself of non-core assets and using the money to improve the balance shee... Read the Full Story |
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From Our Partners | | On August 19th, Bitcoin exploded 23% in a matter of days… triggering nearly $3 billion in short liquidations, the largest single-day squeeze crypto has seen since 2021.
Days earlier, BlackRock, the world's largest asset manager, argued the brutal selloff earlier this year was a leverage reset, not a breakdown. Speculative excess, in their words, had been "largely purged." Then the market moved exactly like they said it would.
Now, Standard Chartered says its $100,000 year-end Bitcoin target may be "too low"... with a possible run back to $126,000, its all-time high. We believe this is the start of something bigger… a setup that only comes around once every few years, where prices are still low right before the real move begins. | | See our #1 coin pick for this new bull run. |
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Consumer Discretionary | |
A study conducted by Global Market Insights (GMI) concluded that the global e-learning market will grow 20% annually over the next seven years and cross the $1 trillion mark by 2028. Even faster growth is forecast for the Asia Pacific region and India.
This suggests that the surge in online learn... Read the Full Story |
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Markets | |
PetMeds Moves Up On Mixed Results
Shares of PetMeds (NASDAQ: PETS) are rocketing higher in the wake of what we can only call a mixed report. The news wasn’t bad and it wasn’t good and it certainly isn’t enough to have shares up by 9%, not unless you factor in the short interest... Read the Full Story |
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From Our Partners | | The Buffett Indicator once flagged the 1929, 1969, and 2000 market peaks - and it's now at 231%, its highest reading in history.
Gold analyst Garrett Goggin, CFA, CMT, has tracked this signal for years and says the pattern points to money rotating from overpriced tech into gold.
Porter Stansberry has called Goggin the most knowledgeable gold investor in the world. | | See Garrett Goggin's four top gold mining picks now |
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Energy | |
Deep-Value Dividend Play Occidental Petroleum Bought By Insiders
The insiders don’t hold a lot of Occidental Petroleum (NYSE: OXY) and their activity isn’t robust, mixed is the better word, but the latest transaction is telling because it comes just before the Q1 earnings were set to... Read the Full Story |
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Consumer Discretionary | |
LCI Industries Is A Steal At These Prices
We expected LCI Industries (NYSE: LCII) to do well in Q1 and outperform the Marketbeat.com consensus estimate but even we were surprised by just how strong the results were. The company was able to overcome numerous challenges including rising prices and... Read the Full Story |
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Technology | | Tech investors have been given plenty of lessons in the past few months about making the best of a bad situation, none more so than Shopify (NYSE: SHOP). The e-commerce platform was one of the darlings of the pandemic fuelled rally in 2020 and was hitting all-time highs as recently as last November.... Read the Full Story |
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Healthcare | |
Cigna Falls On Strong Results, Analyst Upgrade
It is times like this when following the money can give the best returns and the money is flowing toward Cigna (NYSE: CI). The company released a better than expected earnings report and raised its guidance sparking yet another wave of analysts upgr... Read the Full Story |
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Markets | |
Don’t Bet On Lordstown Motors Rebound, Yet
Lordstown Motors (NASDAQ: RIDE) has been in a protracted downtrend along with the rest of the EV market and that downtrend is not over yet. While Lordstown Motors issues a better than expected report the headlines are about all the good news there... Read the Full Story |
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Wednesday's Early Bird Stock Of The Day FirstCash Holdings, Inc, together with its subsidiaries, operates retail pawn stores in the United States, Mexico, and rest of Latin America. The company operates in three segments: U.S. Pawn, Latin America Pawn, and Retail POS Payment Solutions segments. Its pawn stores lend money on the collateral of pledged personal property, including jewelry, electronics, tools, appliances, sporting goods, and musical instruments; and retails merchandise acquired through collateral forfeitures on forfeited pawn loans and over-the-counter purchases of merchandise directly from customers. The company also provides retail POS payment solutions, which focuses on LTO products and facilitating other retail financing payment options across the network of traditional and e-commerce merchant partners. It serves cash and credit-constrained consumers. The company was formerly known as FirstCash, Inc and changed its name to FirstCash Holdings, Inc. in December 2021. FirstCash Holdings, Inc was incorporated in 1988 and is headquartered in Fort Worth, Texas. | | View Today's Stock Pick |
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