Good MorningEquity markets resumed their downward movement on Thursday after a weaker-than-expected GDP reading. The first estimate for Q1 GDP came in at 1.6%, well below the consensus forecast. The weak data renewed fear of slowing growth and a possible recession, cutting more than 1.0% off the Dow Jones Industrial Average and S&P 500 before the open. However, the market began to recover by the end of the session and closed the day off of the low.
Where the market goes next will come down to data released today. The PCE price index is due and expected to be hot. A hot read will keep the FOMC's foot on the economic brake, increasing the odds of a recession. However, the FOMC's policy is sufficiently tight. It can act to stave off recession, given the inflation data cooperates. Because the economy is still growing, the S&P could still move higher.
The risk now is stagflation. The Fed can stave off a recession, but if it is forced to cut rates sooner than necessary to fight inflation to fight recession instead, inflation will accelerate and remain a problem. Featured: Elon Musk Called a Total Fraud in 2018 - Here's What Changed (Ad) 
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Technology | | The semiconductor sector, usually a beacon of market strength, found itself in a storm last Friday. Shares of NVIDIA Corp. (NASDAQ: NVDA) closed the day down 10%, wiping out nearly $200 billion in market capitalization. This dramatic plunge sent shockwaves through the industry, leaving many leading ... Read the Full Story |
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From Our Partners | | Jeff Brown, founder and CEO of Brownstone Research, says he has uncovered what he calls one of the biggest discoveries of his career tied to the ongoing AI boom.
Brown is pointing to a key date, October 20, and is highlighting five AI-related opportunities outside the traditional stock market that most investors have never heard of. | | Click here to see the full research before October 20 |
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Consumer Discretionary | | After announcing the first quarter 2024 financial results, arguably the most critical quarter of the year as it sets the tone for any stock, shares of Hasbro Inc. (NASDAQ: HAS) jumped by as much as 12%.
With Mattel Inc. (NASDAQ: MAT) also rallying on earnings and flirting with new 52-week high pri... Read the Full Story |
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Industrials | | The market’s reaction to Caterpillar’s (NYSE: CAT) Q1 results and guidance proves that the correction in price action is not over. The news isn’t bad, but tepid and weaker than expected, causing a sentiment reset. Analysts rate the stock at Hold and lifted their price targets stead... Read the Full Story |
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From Our Partners | | Jeff Brown, the analyst who flagged Bitcoin, Tesla, and Nvidia early, is tracking Elon Musk's next move. He points to a new AI project tied to Musk's Cybercab reveal.
Brown says Musk has opened major investment windows before, with PayPal, Tesla, and SpaceX marking milestones in tech history. He believes a fourth may open by October 30. | | See Jeff Brown's full analysis on Musk's new AI project |
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Utilities | |
One standout player in the exchange-traded funds (ETFs) world has been making waves for its recent relative strength: the Utilities Select Sector SPDR Fund (NYSEARCA: XLU). It's been holding its ground well this year, clocking in gains of almost 5% so far. Lately, however, it's caught up with the ... Read the Full Story |
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Consumer Discretionary | |
Markets were scared to wake up to the Federal Reserve (the Fed) pulling the rug. After pricing in the proposed interest rate cuts for 2024, which were set to be implemented by March, then May, and now September, according to the CME’s FedWatch tool, markets retraced on the thought of no more... Read the Full Story |
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From Our Partners | | MindWalk Holdings (NASDAQ: HYFT) is applying AI to drug discovery, and its customer base already includes 19 of the top 20 global pharmaceutical companies.
The company's HYFT technology maps roughly 660 million biological patterns and 25 billion relationships. Q1 fiscal 2027 revenue hit $3.8 million, with gross margin improving to 59 percent in its fifth consecutive quarter of year-over-year growth.
A new OpenFold3 deployment delivered about 5x faster antibody-antigen inference, and a $30 million revolving credit line, free of warrants or equity conversion, adds fuel for expansion. | | Take a closer look at HYFT before AI reshapes drug discovery. |
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Communication Services | |
Anyone waiting for a pullback in Meta Platforms (NASDAQ: META) stock should cheer the Q1 results. The news underscores the company’s strengths yet resulted in a 15% correction in the share price. Analysts are adjusting their targets but continue seeing substantial upside, leading the market ... Read the Full Story |
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Materials | | After outperforming the Industrial Select Sector SPDR Fund (NYSEARCA: XLI) by more than 15% over the past five months, shares of Nucor Co. (NYSE: NUE) have now fallen behind the sector after reporting its first quarter 2024 earnings, arguably the most important earnings for the year as they set the ... Read the Full Story |
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Industrials | |
Simpson Manufacturing Co. (NYSE: SSD) sent its share price reeling as it reported its struggles during Q1 2024, but this is a great time to buy this construction stock. You don’t buy Simpson because of today’s results, or even next quarter’s or next year’s, but because of t... Read the Full Story |
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Industrials | |
Some stocks are undeniable pillars in their respective industries, and sometimes even for an entire economy. Shares of Boeing Co. (NYSE: BA) saw little change after it reported its first quarter 2024 earnings results, arguably the most important earnings report of the year as it set the tone for t... Read the Full Story |
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Technology | | Texas Instruments (NASDAQ: TXN) dividend is unique among chipmakers for its yield, if nothing else. The stock yields over 3.15%, which is double or better than the rest of the field, and it is a safe and growing distribution.
The dividend alone may not be a reason to buy the stock but the opportun... Read the Full Story |
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Friday's Early Bird Stock Of The Day Nkarta, Inc., a clinical-stage biopharmaceutical company, develops and commercializes natural killer cell therapies for cancer and autoimmune disease treatment. The company's lead product candidate is NKX019, a chimeric antigen receptor-natural killer (CAR NK) targeting the CD19 antigen that is in Phase 1 clinical trial for the treatment of relapsed/refractory (r/r) non-hodgkin lymphoma, as well as for lupus nephritis. It also develops NKX101, a CAR NK product candidate targeting cells that display NKG2D ligands, which is in Phase I clinical trial for the treatment of r/r acute myeloid leukemia or higher risk myelodysplastic syndromes, as well as for solid tumors. In addition, the company develops NKX070, targeting the CD70 tumor antigen to treat solid and liquid tumors; and NK+T cell therapy for use in the treatment of oncology, autoimmune disease, or infectious disease. It has a research collaboration agreement with CRISPR Therapeutics AG. Nkarta, Inc. was incorporated in 2015 and is based in South San Francisco, California. | | View Today's Stock Pick |
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