Good MorningEquity markets started the week on a sour note with the S&P 500 falling more than 2.0% at the session's close. The move was driven by the reacceleration of inflation, rising interest rates and the new expectation this week's PCE price index will be hotter than before. In this light, the FOMC can be expected to continue raising interest rates and now another 50 basis point hike is back on the table.
Although labor markets indicate economic activity is still vigorous in the US, there is a shift from higher-paying quality work into lower-paying service jobs. This is fueling a contraction in S&P 500 earnings that is only going to get worse as the year progresses. With consensus estimates for S&P 500 earnings trending lower and nearing the 0.0% mark, it is likely the market will continue falling this week.
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Consumer Discretionary | |
Despite challenges, including inflation and staffing shortages, Chipotle Mexican Grill Inc. (NYSE: CMG), Wingstop Inc. (NASDAQ: WING) and Nathan’s Famous Inc. (NASDAQ: NATH) are restaurant-industry price-performance leaders.
Fast food and casual dining are often considered “recession... Read the Full Story |
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From Our Partners | | Marc Chaikin, the 60 year Wall Street veteran whose Chaikin Money Flow indicator sits on every Bloomberg terminal, says a new micro cluster AI technology could render today's data centers, including Elon Musk's Colossus in Tennessee, obsolete for major breakthroughs.
These next generation centers use 99 percent less space, electricity and water, yet Chaikin's research shows they could be more than a trillion times more powerful than the top data center on earth today, potentially cutting AI breakthrough timelines from five years to five days. | | See Chaikin's full research and the company name here |
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Technology | |
Arbe Robotics Ltd. (NASDAQ: ARBA) may be a key player in the global arms race toward fully autonomous driving. Arbe is a global leader in 4D radar technology whose chipsets are being implemented in advanced driver assistance systems (ADAS) and electric vehicles (EV) globally. Arbe claims its senso... Read the Full Story |
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Consumer Staples | |
Molson Coors (NYSE: TAP) popped on its Q4 results but now may not be the time to buy. Although the market is up after the report, the post-release action is less than promising. The spike in price action was used by bears and profit-takers alike to add or trim positions as the case may be. The sal... Read the Full Story |
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From Our Partners | | What if the next Apple or Amazon landed in your inbox… tomorrow? Imagine getting the research, numbers, and expert opinions on a stock before everyone else even has a clue. It’s like having a backstage pass to the best concert in town—but for your portfolio. | | Sign Up for The Early Bird Stock of the Day (Free) |
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Healthcare | |
Hum-drum Medtronic (NYSE: MDT) has seen its shares fall dramatically over the past year due to a massive downdraft in the analysts' sentiment. The downdraft was caused by the peaking of COVID-19 and the tailwind it provided to businesses. The takeaway for today is that Medtronic shares have priced... Read the Full Story |
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Consumer Discretionary | |
Home Depot (NYSE: HD) is a good company with an outstanding stock, but now is not the time to buy. The company’s Q4 results and guidance for 2023 have the stock headed for the bargain basement, which is good news but not news that should be acted on now.
Once the stock is at the bottom, inv... Read the Full Story |
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From Our Partners | | Luke Lango, once ranked the top stock picker out of 15,000 by TipRanks, called Nvidia the cream of the crop in 2018, backed Tesla in 2019, and recommended AMD before it climbed more than 26,000 percent.
Now he says he has never been more convinced of a stock's potential, and he is pointing to a $15 stock he calls the biggest recommendation of his career. | | See the $15 stock Luke Lango is backing now |
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Communication Services | |
For investors with an income or dividend snowball strategy, the good news is that there is an emerging universe of new dividend aristocrats to add to one’s portfolio. Some of these companies also come from sectors of the economy that are presently underserved, making them much-appreciated ad... Read the Full Story |
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Consumer Staples | |
Walmart (NYSE: WMT) did not have a terrible quarter and its guidance, weak as it is, does not spell doom for the economy but they do mean bad news for the S&P 500. While consolidation within the retail sector, trading down to cheaper brands and market share gains in grocery support the busines... Read the Full Story |
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Healthcare | |
Gene editing may be a relatively new industry, but it already has a lot of promise, especially for savvy biotech investors. Several gene editing companies have notable upsides, meaning that no matter how good or bad they might be doing right now, there is likely much more to come.
After all, many... Read the Full Story |
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Consumer Discretionary | |
Move over ‘FAANG.’ There’s a new stock investing acronym in town.
Not to be confused with the hit song from ‘The Lion King,’ MATANA is the latest term to describe the market’s technology leaders. The catchy sextet (in order) consists of Microsoft (NASDAQ: MSFT)... Read the Full Story |
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Consumer Discretionary | |
Self-driving cars are one of the hottest topics in the auto industry, however, many view the adoption as “zero-to-one.” Mobileye (NASDAQ: MBLY), an established autonomous vehicle leader, proves that the march toward full autonomy is incremental.
Mobileye creates advanced driver-assist... Read the Full Story |
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Wednesday's Early Bird Stock Of The Day Radian Group Inc., together with its subsidiaries, engages in the mortgage and real estate services business in the United States. It operates through two segments, Mortgage Insurance and Homegenius segments. The Mortgage Insurance segment aggregates, manages, and distributes U.S. mortgage credit risk for mortgage lending institutions and mortgage credit investors, through private mortgage insurance on residential first-lien mortgage loans; and other credit risk management solutions, including contract underwriting. The Homegenius segment offers title services, including a suite of insurance and non-insurance titles; tax and title data, centralized recording, document retrieval, and default curative title services; deed and property reports; closing and settlement services; mortgage underwriting and processing; escrow; appraisal management; and real estate brokerage. This segment also provides real estate valuation products and services; asset management services for managing real estate owned properties, which includes a web-based workflow solution; and a suite of real estate technology products and services to facilitate real estate transactions, such as proprietary platforms as a service solution. It serves mortgage originators, such as mortgage bankers, commercial banks, savings institutions, credit unions, and community banks; and consumers, mortgage lenders, mortgage and real estate investors, government-sponsored enterprises, real estate brokers and agents, and corporations for their employees. The company was formerly known as CMAC Investment Corp. and changed its name to Radian Group Inc. in June 1999. Radian Group Inc. was founded in 1977 and is headquartered in Wayne, Pennsylvania. | | View Today's Stock Pick |
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