Good MorningEquity markets pulled back again on Wednesday after the FOMC minutes revealed more risks than previously feared, and the minutes cited tight labor markets and higher-than-acceptable wage inflation, among other risks to inflation. The risks could lead to additional rate hikes not priced into equities. This sets up a situation in which the FOMC outlook darkens and puts additional weight on the market. In this scenario, the top reached by the S&P 500 is the highest level investors will see until later this year or next.
The risk is centered on the FOMC again, but the driver of that risk is oil. Oil prices retreated this week but remain uptrending and are on the verge of breaking out to new highs. The market is tilted in favor of higher prices, although the data has some volatility. The odds are high that oil prices will continue to trend higher through the end of the year and lift consumer-level inflation along with it. Featured: Quick heads-up on your copy (Ad) 
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Markets | |
Tickets. Flights. A new 72” TV. A retro jersey for your favorite player.
With just a few weeks before the National Football League (NFL) season kicks off, preparations are well underway for football fans. For some, formulating a fantasy football strategy won’t be the only research ta... 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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Consumer Discretionary | |
There is 1 thing clear in The TJX Companies (NYSE: TJX) Q2 results, and that it is hitting its stride. The off-price retailers were expected to benefit from shifting consumer habits, and they are. It took a little longer than the market first anticipated, but the signs are clear that full-price re... Read the Full Story |
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Consumer Staples | |
Target (NYSE: TGT) shares surged about 10% after the Q2 earnings report was released but don’t read too much into the news. The surge is a knee-jerk reaction to a mixed report that does nothing to improve the outlook. If anything, the Q2 strengths are 1-offs that won’t persist in the f... Read the Full Story |
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From Our Partners | | Mining stocks represent just 1% of global equities today, the lowest level in more than a century. Almost no investors own them.
Garrett Goggin, CFA, CMT and founder of Golden Portfolio, has tracked three prior Great Rotation events where capital shifted from growth stocks into gold miners. He believes trillions currently chasing AI could follow the same path. | | Get Garrett Goggin's top four gold mining stock picks here |
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Consumer Discretionary | |
Outdoor recreation got a big boost during the pandemic as social distancing and lockdowns caused people to seek out other forms of leisure and entertainment that didn't involve human interactions.
Recreational vehicle (RV) sales skyrocketed, as evidenced by the jump in business for RV makers like... Read the Full Story |
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Consumer Staples | |
You could think of Vita Coco Co.'s (NASDAQ: COCO) coconut water as a beach vacation in a box.
The company, which went public in October 2021, markets its coconut water in several flavors, and also sells coconut milk and coconut juice.
Its other brands include Runa, a plant-based energy drink; ... Read the Full Story |
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From Our Partners | | Dr. Martin D. Weiss has publicly predicted six major American financial crashes over his 55-year career leading Weiss Ratings, the only conflict-free rating agency in the US.
Now he says a $3 trillion problem could trigger a chain reaction of crashes and failures, causing a global freeze in financial markets. | | See Dr. Weiss's full warning before the next crisis hits. |
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Consumer Staples | |
Yes, it’s that time of year already.
The National Retail Federation (NRF) estimates that Americans will spend a record $41.5 billion on back-to-school shopping this year, 5% more than last year. Back-to-college shopping is forecast to surge 27% to $94 billion.
Like holiday shopping, consu... Read the Full Story |
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Consumer Discretionary | |
Homebuilders have been a leading industry throughout 2023, defying fears that high interest rates would keep buyers away. KB Home (NYSE: KBH), a mid-cap in the industry, has been forming a bullish area of price consolidation that might be hard to spot on a chart.
KB Home is a component of the iS... Read the Full Story |
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Communication Services | |
Higher engagements grow revenues: This maxim applies to many things in the digital economy, including digital advertising.
It also applies to rideshare and food delivery, as illustrated by Uber Technologies Inc. (NYSE: UBER) and its daily active users (DAUs). Daily active users generate higher re... Read the Full Story |
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Industrials | |
As summer winds down, business activity is picking up in the construction sector, which was beaten down for much of the year. The possibility for attractive growth in the upcoming quarter commands attention.
Much of that optimism comes from the level of United States housing starts, which rose ag... Read the Full Story |
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Technology | |
Salesforce.com (NASDAQ: CRM), Adobe (NASDAQ: ADBE), and Advanced Micro Devices (NASDAQ: AMD) have multiple tailwinds in common that could see their shares rocket higher in Q3. Among them is the shift to AI, a shift that is underpinning the results and outlook. Other factors include an outlook for ... Read the Full Story |
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Thursday's Early Bird Stock Of The Day Arista Networks, Inc. engages in the development, marketing, and sale of data-driven, client to cloud networking solutions for data center, campus, and routing environments in the Americas, Europe, the Middle East, Africa, and the Asia-Pacific. Its cloud networking solutions consist of Extensible Operating System (EOS), a publish-subscribe state-sharing networking operating system offered in combination with a set of network applications. The company offers data center and cloud networking systems, including newer artificial intelligence (AI) ethernet switching platforms; campus wired and wireless products, and routing systems addressing Core Routing, Edge Routing, Data Center Interconnect (DCI), Multi-cloud and Wide Area Networking (WAN) use cases; and a suite of value-add software solutions that leverage EOS to provide end-to-end orchestration, automation, analytics, network monitoring, and security. It also provides post contract customer support services, such as technical support, hardware repair and replacement parts beyond standard warranty, bug fixes, patches, and upgrade services. The company serves a range of industries comprising internet companies, service providers, financial services organizations, government agencies, media and entertainment companies, telecommunication service providers, and others. It markets and sells its products through distributors, system integrators, value-added resellers, and original equipment manufacturer partners, as well as through its direct sales force. The company was formerly known as Arastra, Inc. and changed its name to Arista Networks, Inc. in October 2008. Arista Networks, Inc. was incorporated in 2004 and is headquartered in Santa Clara, California. | | View Today's Stock Pick |
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