Good MorningEquity markets started the week on uncertain footing as the focus shifted away from NVIDIA and AI toward economic data. A full slate of data is due out, including the January read of the PCE price index. The PCE price index is expected to show a sequential acceleration to align with the latest CPI data, news that is unlikely to spur risk-on appetite. Hot inflation will keep the FOMC's policy tight until later in the year, jeopardizing this year's earnings outlook.
The market has its hopes pinned on an interest rate cut in the first half, and it is becoming less and less likely. The CME FedWatch Tool shows a slim chance for a single 25 basis point cut by June and only a 50/50 chance for two by July. Because the 2nd-half earnings outlook depends on rates falling, a hot inflation read could have an outsized impact on the market. As it is, the S&P 500 is well above critical support and the 150-day moving average, setting it up for a high-single-digit decline when it comes. Featured: The case for trading fewer setups, not more (Ad) 
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Technology | |
Palantir Technologies (NYSE: PLTR) stock is gaining traction and may advance another 50% or more in the next few months. The company has a solid product, growing demand, deepening penetration and widening margins that can all be blamed on its utility. The company is the leading provider of data ga... Read the Full Story |
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From Our Partners | | Oracle runs 15,000 stocks through the same filter every single day, scanning for precise setups before the opening bell - no emotion, no guesswork.
Tim Bohen, Lead Trainer at StocksToTrade, is walking through this week's flagged setups and showing exactly how the scanner works in a live training right now. | | Watch the scanner in action and join the live training now |
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Finance | |
Because the Federal Reserve (the Fed) has announced potential interest rate cuts for this year, an expectation priced in for March is now being pushed as far back as May or June, according to the FedWatch tool at the CME Group Inc. (NASDAQ: CME). A rising level of uncertainty may push the fundamen... Read the Full Story |
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Technology | |
Global positioning satellite-based (GPS) navigation was once only available through stand-alone GPS devices. Many analysts believed the widespread penetration of smartphone-based GPS navigational apps in the computer and technology sector, like Alphabet Inc. (NASDAQ: GOOGL) owned Google Maps and W... Read the Full Story |
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From Our Partners | | Washington has taken an ownership stake in Intel, carved out a cut of Nvidia's and AMD's chip sales, and reportedly fielded an offer to own 5% of the largest AI company on the planet. The government is shifting from referee to shareholder in the most important technology race of the century.
When the rules change, the winning trades change with them. Some blue chips sitting in your index fund are now on the wrong side of this shift - while a select group of companies pulled into the new arrangement may be treated like national treasures. | | Watch the documentary to see which stocks to buy and sell now |
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Technology | |
Applied Optoelectronics Inc. (NASDAQ: AAOI) is a leader in fiber-optic networking products. The company designs and manufactures advanced fiber optic products, components and modules used in cable broadband networks, telecommunications, fiber-to-home deployments and data centers. High-speed optica... Read the Full Story |
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Consumer Discretionary | |
Sleep Number Co. (NASDAQ: SNBR) shares jumped 33% on its Q4 2023 earnings release. The consumer discretionary sector company is a leading manufacturer of smart adjustable beds and accessories. It competes with mattress giant Temper Sealy International Inc. (NYSE: TPX). Their lead product is Sleep ... Read the Full Story |
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From Our Partners | | The U.S. government has taken roughly a 10% stake in Intel, negotiated a 15% cut of Nvidia and AMD chip sales to China, and reportedly received a 5% ownership offer - worth around $40 billion - from the most valuable AI company on earth.
Porter Stansberry calls it the New U.S.A.I. - a state-backed arrangement where Washington and a handful of tech giants are fused at the balance sheet. A small number of companies get pulled inside. Everyone else gets frozen out, including names sitting in your index fund right now. | | Watch the documentary to see which companies are on the right side |
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Retail/Wholesale | |
Autozone (NYSE: AZO) shares surged following the FQ2 report, confirming the uptrend is intact. Because the news aligns with the outlook for growth and capital returns, the trend will likely continue through 2024. The technical picture is also favorable, with the stock breaking out of a bullish tri... Read the Full Story |
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Construction | |
Penny stocks are riskier than others for many reasons, including profits and liquidity. Penny stocks trade for pennies a share, often at deep discounts to peers, because they haven’t yet generated profits for their owners and may not do so soon. Profits are the most significant factor for a ... Read the Full Story |
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Retail/Wholesale | |
At face value, Lowe’s Companies (NYSE: LOW) had a rough Q4 compared to competitor Home Depot, but the details within the report belie that assessment. Comps were weak, but the company is building leverage, generating cash, and returning capital to investors meaningfully.
The combination of... Read the Full Story |
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Auto/Tires/Trucks | |
The world used to run on coal and other types of fuel that powered the different titans of industry. This cycle started with transportation through railways to factories and steel mills that were the backbone of the Industrial Revolution. That led to the global economic growth of the 1940s through... Read the Full Story |
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Retail/Wholesale | |
Domino's Pizza Inc. (NYSE: DPZ) is a globally recognized pizza delivery brand recently gaining noteworthy attention. Domino's financial results for the fourth quarter of 2023 were reported, and the report exceeded Domino's analyst expectations. This positive performance has caught the interest of ... Read the Full Story |
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Wednesday's Early Bird Stock Of The Day Arbor Realty Trust, Inc. invests in a diversified portfolio of structured finance assets in the multifamily, single-family rental, and commercial real estate markets in the United States. The company operates through Structured Business and Agency Business segments. It primarily invests in bridge and mezzanine loans, including junior participating interests in first mortgages, and preferred and direct equity, as well as real estate-related joint ventures, real estate-related notes, and various mortgage-related securities. In addition, the company offers bridge financing products to borrowers who seek short-term capital to be used in an acquisition of property; financing by making preferred equity investments in entities that directly or indirectly own real property; mezzanine financing in the form of loans that are subordinate to a conventional first mortgage loan and senior to the borrower's equity in a transaction; junior participation financing in the form of a junior participating interest in the senior debt; and financing products to borrowers who are looking to acquire conventional, workforce, and affordable single-family housing. Further, it underwrites, originates, sells, and services multifamily mortgage loans through conduit/commercial mortgage-backed securities programs. The company qualifies as a real estate investment trust for federal income tax purposes. It generally would not be subject to federal corporate income taxes if it distributes at least 90% of its taxable income to its stockholders. Arbor Realty Trust, Inc. was incorporated in 2003 and is headquartered in Uniondale, New York. | | View Today's Stock Pick |
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