Good MorningEquities plummeted on Tuesday following a much hotter than expected reading of the CPI. The CPI came in hotter than expected in all comparisons belying the idea that consumer inflation had peaked which puts increased pressure on the FOMC to act. The news not only points to hot inflation but an acceleration at the consumer level that may not be finished. The FOMC is meeting next week and has been indicating a willingness to fight inflation that could lead to another 75 basis point hike or more. The odds of a 75 basis point hike hit 100% following the CPI news and the CMEs FedWatch Tool is pricing in a 35% chance for an historically high 100 basis point interest rate hike.
The takeaway from the news is far-reaching and ends with the earnings outlook for the S&P 500. Inflation is cutting into the bottom line for most companies and FOMC interest rate hikes are going to cap business and other economic activities which means lower revenues and lower earnings. The bottom line is the hurricane predicted by Jamie Dimon last spring is now upon us and it looks like it's a bad one. Featured: Elon’s big $266,000 per second purchase (Ad) 
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Consumer Staples | |
Mid-cap energy drink maker Celsius Holdings (NASDAQ:CELH) has been trading in a sideways pattern without gaining any lift since its earnings report on August 9.
The company’s proprietary MetaPlus formula is designed to turn on thermogenesis, a process that boosts the body's metabolic rate.... Read the Full Story |
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From Our Partners | | Bill Poulos is offering his Smart Trade Options Checklist at no cost today - normally priced at $29.97.
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Finance | |
It was only two days ago I predicted another drop in the S&P 500 (NYSEARCA: SPY), and oh, what a difference those days have made. Since then, we’ve got not one but two horribly bad inflation reports that have the outlook for interest rate hikes and recession reaching new peaks. As if the... Read the Full Story |
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Technology | |
Lyft (NASDAQ: LYFT) stock has been rising on the back of rumors of acquisition from an activist investor. Lyft’s stock is down over 66% over the past year, as exuberance stemming from the previous few years that led to excessive valuations has started to moderate, especially within tech sect... Read the Full Story |
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From Our Partners | | Trump is launching a new $250 bill - but that may be a distraction. Behind the scenes, Executive Order 14241 is orchestrating what analyst Porter Stansberry calls a total U.S. money reset, bypassing conventional legal channels under the guise of national security.
The last time America reset its currency - under Nixon in the 1970s - it created an average of 1,300 new millionaires a day for over 50 years. Stansberry has identified three asset categories connected to Trump's initiative that could surge, plus his single top investment move. | | Watch the documentary briefing and find out which side you land on |
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Consumer Discretionary | |
Stocks are going on sale across the market, and the insiders are beginning to notice. The latest screen of stocks with interesting insider activity includes 4 bargains that offer value to investors and, in 3 cases at least, attractive capital returns as well.
Dividend King V.F. Corporation
App... Read the Full Story |
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Retail/Wholesale | | Indeed, we're not "past" the pandemic (you can probably name a couple of people you know who have had positive COVID-19 tests — they continue to bubble up). If you've been a trader or investor over the past two years, you likely noticed a giant leap in Lowe's stock. Consumers had a huge driv... Read the Full Story |
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From Our Partners | | Bank of America just revealed your expiration date. In their Bloomberg interview, they didn't just predict the digital dollar. They gave us the timeline… 2025 to 2030. We're in that window right now.
Once the digital dollar launches, every transaction you make will be tracked. Your spending could be controlled. Your accounts could be frozen.
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Consumer Discretionary | |
By the slimmest of margins, the U.S. economy slipped into a recession after real gross domestic product, or GDP, retreated 0.6% in the second quarter.
Still, many market prognosticators have brushed aside the technical definition of two straight quarters of negative GDP growth, asserting that re... Read the Full Story |
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Markets | | Discount retailer Five Below (NASDAQ: FIVE) stock has been suffering from macroeconomic headwinds. The stores sells consumables and products from $1 to $5. The bright and colorful stores seems to focus on a younger demographic from toddlers to teens as its packed with toys, novelty and cutesy items,... Read the Full Story |
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Business Services | |
Waste Management Inc. (NYSE: WM) has gotten some media attention in the past month due to its over-12% returns — they're not garbage. (See what we did there?) While in a comparatively ho-hum business, it's still a staple. People need to do something with their trash.
Waste Management Inc. ... Read the Full Story |
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Finance | |
The S&P 500 (NYSEARCA: SPY) 3rd quarter earnings reporting season is fast approaching and it's time to start preparing for what could be a very bad season. While there are some glimmers that inflation has peaked it's still high, biting into the bottom-line outlook, and compounded by supply cha... Read the Full Story |
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Technology | |
Oracle (NASDAQ: ORCL) is an important company to watch for more reasons than one. In regard to the earnings cycle, it reports mid-way between peaks marking the low point of the cycle. In regard to its business, the company can give deep insight into the SaaS and now Cloud Computing industries, and... Read the Full Story |
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Wednesday's Early Bird Stock Of The Day Lamar Advertising Company operates as an outdoor advertising company in the United States and Canada. The company owns and operates billboards, logo signs, and transit advertising displays, as well as rents space for advertising on billboards, buses, shelters, benches, logo plates, and in airport terminals. Lamar Advertising Company was founded in 1902 and is headquartered in Baton Rouge, Louisiana. | | View Today's Stock Pick |
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