Good MorningEquity markets reversed course on Wednesday, ending a steady string of advances with a 1.5% decline. The move was driven by fear the Fed would not cut rates early in 2024 but would hold off until mid-year or later. The latest CPI report showed inflation cooler than before but holding steady near double the FOMC 2.0% target, a level inconsistent with the idea of interest rate cuts. The November PCE Index is due on Friday and may confirm stabilizing inflation at a higher-than-normal rate, a scenario sure to keep the FOMC in a hawkish stance for the next few meetings.
The S&P 500 is unlikely to move higher without a significant change in the outlook. The PCE data could do it, but it may take more than one data point to sway the Fed. This means high-interest rates and their impact on housing and consumer markets will remain in place. With the outlook for S&P 500 earnings growth in a quick retreat, it is likely the market will enter another correction in the first half of 2024 and could shed 10% to 20% before it is through. Featured: 3 Quiet Setups You Should Review from Street Ideas. (Ad) 
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Healthcare | |
Investors who own Pfizer Inc. (NYSE: PFE) may have expected 2023 to be what football teams call a "rebuilding year." The company shifted its focus away from COVID-19 drugs and toward potential deals, share buybacks, and new treatments in its pipeline.
While rebuilding years are often messy, Pfize... Read the Full Story |
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From Our Partners | | Tim Sykes built a trading strategy for people who can't watch charts from 9:30 to 4:00 every day.
It's not a discipline problem, it's a schedule problem, and Sykes has spent years developing an approach that fits around a job, a family, and a real life.
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Consumer Discretionary | | As year-end swiftly approaches, it's time to reflect on the year that was. 2023 will be remembered as the year of not just one standout catalyst but many. Notably the rise of Artificial Intelligence (AI), ongoing geopolitical tensions and conflicts, rising interest rates, and the Federal Reserve's b... Read the Full Story |
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Markets | |
United States Steel (NYSE: X) was once a more important American company than it is today, having been a Dow component until 1990. But it's back in the headlines after Japan's Nippon Steel Corp. (OTCMKTS: NPSCY) said it would acquire the company for $14.1 billion.
That beat out an earlier bid fro... Read the Full Story |
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From Our Partners | | Jim Rickards believes the Trump administration is about to take a direct stake in a $2 stock sitting on the largest mineral reserve in the country - enough gold for a new Fort Knox, enough copper to rebuild the U.S. electric grid 25 times over.
The Trump administration has previously staked positions in MP Materials, Lithium America, Trilogy Metals, and USA Rare Earth - each time shares moved higher. A landmark policy decision expected before November 3 could reprice this stock from $2 to $20 or more within a year. | | Click here to see why Rickards believes this stock is next |
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Technology | |
Insiders are selling into the rallies on some widely held stocks, posing a potential headwind for the market. The caveat for investors and short-sellers alike is that this activity is far from bearish. While insider selling can signify impending doom, particularly when ramping up, that is not the ... Read the Full Story |
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Consumer Discretionary | |
Most stock call option contracts lose money upon expiration. They expire worthless. If you buy an out-of-the-money (OTM) call option because you believe a stock will rise in value, chances are high that you will lose most or all of your investment by options expiration. Options players that take d... Read the Full Story |
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From Our Partners | | James Altucher says Elon Musk is preparing an unprecedented project set to surface on September 25.
Altucher is hosting a free masterclass revealing what he says is locked inside a sealed briefcase detailing Musk's plans.
Attendees who join early can also access a $1,000 bonus offer included with the presentation. | | Watch James Altucher's free masterclass before September 25 |
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Consumer Discretionary | |
Ubisoft Entertainment SA (OTCMKTS: UBSFY) is a video game publisher and developer headquartered in France. The computer and technology sector company is well-known for its popular iconic video game series like Assassin's Creed, Ghost Recon, Just Dance, The Crew, Rainbow Six and Far Cry.
Microsof... Read the Full Story |
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Industrials | |
Analysts note that HEICO Corporation (NYSE: HEI) benefits from cyclical strength in the commercial aerospace market. This low-yield, high-growth company is growing via demand for "the majority of our commercial aerospace products" and acquisitions, which have boosted the business into a hyper-grow... Read the Full Story |
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Communication Services | |
Every time an investing legend invests, you can count on their expertise, experience, and undeniable track record to assume that there is some gold in the name they selected to allocate some of their assets. Whether for piggybacking or learning a valuable lesson, it pays to follow these moves clos... Read the Full Story |
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Markets | |
A tried and tested relationship exists between the Federal Reserve's stance and certain types of stocks. Particularly, for reasons that will become obvious in just a bit, small-capitalization stocks do well when the FED takes a dovish stance — another word for cutting rates. A new cycle may ... Read the Full Story |
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Industrials | |
FedEx Corporation (NYSE: FDX) executes well and builds earnings leverage. The bad news is that business continues to weaken, impacting the overall top and bottom-line results and the economic outlook. This situation has the market for FDX shares moving sharply lower following the FQ2 results, pavi... Read the Full Story |
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Thursday's Early Bird Stock Of The Day Rail Vision Ltd. designs, develops, assembles, and sells railway detection systems for railway operational safety, efficiency, and predictive maintenance in Israel. The company's railway detection systems include various cameras, such as optics, visible light spectrum cameras (video), and thermal cameras that transmit data to a ruggedized on-board computer that is designed to be suitable for the rough environment of a train's locomotive. It offers main line systems for the safety of train operations, prevention of collisions, and reduction of downtime; railway detection system for passengers and freight trains; shunting yard systems for shunting operations; and light rail vehicle systems for detecting and classifying obstacles. The company also provides rail vision big data services, as well as maintenance and predictive maintenance systems; and geographic information systems for mapping and updates. Rail Vision Ltd. was incorporated in 2016 and is headquartered in Ra'anana, Israel. | | View Today's Stock Pick |
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