Good MorningEquity markets rebounded by 2% on Thursday, hoping the PCE price index would confirm a slowdown in inflation. The index is expected to hold steady at 0.3% compared to last month but fall to 4.5% compared to last year. That is a 0.1% decline in inflation but not enough reason for the market to rally. The market hopes that inflation will fall more than expected and lead the FOMC to begin pausing its interest rate hikes next week.
The risk for the Fed and the market is that pausing will allow the economy to regain traction and sustain inflation. In that scenario, the Fed will have to hike rates again later this year, possibly at a market-surprising pace. With oil prices hovering at levels not sustained in over a decade, it is unlikely inflation will turn negative, and there is a risk that oil prices will rise again. Oil prices are tied to the economic outlook; if the Fed surprises with a pause next week, the outlook will brighten, and oil prices will rise. Featured: Did you see the WSJ on 8-9? (Ad) 
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Industrials | |
Shares of Southwest Airlines (NYSE: LUV) are trading lower in today's trading session, declining by as much as 6.5% following the company's first quarter of 2023 earnings announcement. While investors and markets are reacting negatively to the current figures and perhaps to some conservative manag... Read the Full Story |
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From Our Partners | | Gold has spiked above $4,400 an ounce as central bankers stockpile at one of the fastest paces in decades, according to a new report from Dr. David Eifrig, a 40-year financial veteran who worked the trading desk during Black Monday in 1987.
Bank of England staff are reportedly working overnight to dig out gold bars for delivery, while nations repatriate hundreds of tons back within their borders.
Eifrig says this goes beyond a typical gold rally and outlines three steps to prepare in a free broadcast. | | Watch the free broadcast now to get the full story |
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Industrials | |
Joby Aviation (NYSE: JOBY), a leader in the electric vertical takeoff and landing (eVTOL) aircraft industry, recently received a $55 million contract extension from the US Air Force for up to nine of its semi-autonomous flying vehicles. This brings the total potential value of Joby Aviation’... Read the Full Story |
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Technology | |
Meta Platforms Inc (NASDAQ: META), formerly known as Facebook, had an impressive Q1 2023 earnings report, beating analysts' expectations and showing strong growth in several key areas. As a result, the company's shares gapped up on Thursday's open to the tune of 15%. It was both a remarkable resul... Read the Full Story |
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From Our Partners | | Barron's estimates a $4 trillion wave of AI IPOs is on the horizon, including OpenAI and Anthropic.
Jason Bodner, a former Wall Street IPO insider who spent nearly two decades connecting IPOs with big institutional investors, says most people approach IPOs the wrong way, pointing to SpaceX's post-IPO decline as an example. | | Watch Jason Bodner's video on positioning for the AI IPO wave |
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Industrials | |
If you’ve been wondering when Automatic Data Processing (NASDAQ: ADP) will hit bottom, it looks like it is in. The pre-Q3 earnings release price action and the report scream bottom and have the stock set up for a reversal. The question that needs to be answered is if this reversal is from do... Read the Full Story |
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Technology | |
While signs of topping within the semiconductor industry are growing, not all segments face the same headwinds, and KLA Corporation (NASDAQ: KLAC) is in the latter group. Reports from Texas Instruments (NASDAQ: TXN) and Samsung (OTCMKTS: SSNLF) lend truth to an outlook put forth by UBS just a week... 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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Healthcare | |
Although the Q1 results sparked a round of profit-taking, Boston Scientific (NYSE: BSX) can set another new all-time high in 2023. The market has been trending higher on a combination of factors that result in up trending sentiment and analyst price targets that have yet to end. The factors drivin... Read the Full Story |
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Industrials | |
Manufacturing and basic materials stocks like MMM (NYSE: MMM) have been declining for the past two years as fears of a coming recession in 2023 brew in the minds of the market and consumers alike. It is not encouraging to see the United States manufacturing PMI index read below 50% (signaling econ... Read the Full Story |
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Consumer Staples | |
As the 2023 NFL Draft reminds us, offensive players get a lot of attention. The same goes for the stock market.
The high growth potential of flashy startups and technology innovators attracts many investors to offense. But while these names can produce impressive financial stats, they come with ... Read the Full Story |
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Technology | |
Reasons to take profits in chip stocks are growing, and Texas Instruments (NASDAQ: TXN) is 1 of them. The company’s Q1 results and outlook weren’t horrible, but they didn’t inspire a rally, and more of the same can be expected from the group. Texas Instruments is a diversified ch... Read the Full Story |
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Consumer Discretionary | |
CEO Brian Niccol continues to prove his worth to Chipotle Mexican Grill (NYSE: CMG) and its investors. The company’s strategy has taken on a new meaning, with growth exceeding expectations on the dual tailwinds of expansion and deepening penetration. It can not be overstated the importance o... Read the Full Story |
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Friday's Early Bird Stock Of The Day Ares Management Corporation operates as an alternative asset manager in the United States, Europe, and Asia. The company's Tradable Credit Group segment manages various types of investment funds, such as commingled and separately managed accounts for institutional investors, and publicly traded vehicles and sub-advised funds for retail investors in the tradable and non-investment grade corporate credit markets. Its Direct Lending Group segment provides financing solutions to small-to-medium sized companies. The company's Private Equity Group segment focuses on majority or shared-control investments primarily in under-capitalized companies. Its Real Estate Group segment invests in new developments and the repositioning of assets, with a focus on control or majority-control investments; and originates and invests in a range of self-originated financing opportunities for middle-market owners and operators of commercial real estate. The firm was previously known as Ares Management, L.P. Ares Management Corporation was founded in 1997 and is headquartered in Los Angeles, California with additional offices in the United States, Europe and Asia. Ares Management GP LLC is the general partner of the company. | | View Today's Stock Pick |
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