Good MorningA soft inflation report led the S&P 500 to a new high. The April reading of CPI was as expected, which means cooler on a month-to-month basis and compared to last year. Consumer-level inflation is not gone, but the pace of deceleration is promising. It points to a soft landing and the FOMC lowering interest rates later this year. The news sent the S&P 500 up more than 1%, taking it to a new all-time high and setting the market up for a summer rally.
With the S&P 500 at a new high, the question becomes how high it can get. Technically speaking, the latest rally was worth about 225 index points before the breakout, putting the first target near 5,500. That may be reached within a few weeks. The next major hurdle for the market will be the FOMC meeting in June. That meeting should bring word of when to expect the first cuts. The risk is that PCE won't align with the CPI, or the FOMC won't view the data favorably enough to think a cut is warranted.
Featured: The 7 Stocks Quietly Gaining Attention Right Now (Ad) 
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Utilities | | It’s hard to believe that a company in the utilities sector can be trading up 142.5% year-to-date, but it is happening for integrated retail electricity and power generation company Vistra Co. (NYSE: VST).
After acquiring Dynegy in 2018, Vistra became the largest competitive power generator i... Read the Full Story |
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From Our Partners | | Rumors are circulating that Elon Musk is preparing to acquire three publicly traded companies.
Dr. Mark Skousen, who met Musk in person and called the SpaceX listing months early, says he has identified all three targets in what he calls Elon's $2.1 Trillion Hit List.
See the three companies before the rumors become headlines. | | Get the details on all three companies now |
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Consumer Discretionary | |
Investors should be familiar with the expression, “Buy the Dip”(BTD) when it comes to the stock market. It means to buy stocks on a pullback. Traders are also familiar with the expression "Sell the Rip" (STR). It means to sell stocks into the strength.
Fending Off FOMO
Put together, ... Read the Full Story |
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Technology | |
Share repurchases are a controversial topic because they often do little more than hide the impact of share-based compensation or amplify (at face value) sluggish earnings growth. However, as with the stocks today, share repurchases can drive shareholder value by reducing the share count. The long... Read the Full Story |
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From Our Partners | | A drilling crew near the Grand Canyon uncovered a clean energy well producing nearly eight times the output of Saudi Arabia's largest oil field, with potential to last two million years.
While the One Big Beautiful Bill Act eliminated federal credits for solar, wind, and EVs, this energy source was reclassified alongside oil and nuclear power and given eight years of tax credits. Google signed a 15-year contract, and Bill Gates committed $100 million.
One company controls the entire supply chain behind this discovery. | | See the ticker behind this Grand Canyon energy breakthrough now |
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Communication Services | | Investors should be amazed at where consumer priorities lie regarding monthly payments. Besides ensuring the mortgage and car are paid, consumers will likely emphasize subscriptions. The evidence behind this belief? Financial stocks like Bank of America reported rising delinquency rates on credit ca... Read the Full Story |
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Markets | |
The meme stocks saga of 2021 marked one of those historical moments in financial case studies. Unfortunately, it will be tied to those like the Tulipmania during the 1600s. Because the underlying financials of stocks like GameStop Corp. (NYSE: GME) aren’t that great, triple-digit rallies in ... Read the Full Story |
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From Our Partners | | AI is expanding beyond software into robots, factories, vehicles, and intelligent machines. That shift could create a new group of market leaders before most investors notice.
A complimentary report, 5 Stocks Powering the Physical AI Revolution, identifies five companies positioned at the center of this shift, along with the technologies, growth drivers, and risks to understand. | | Get your free copy before physical AI becomes Wall Street's next crowded trade |
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Energy | |
The energy industry is supported by demand and pricing despite the murky outlook. We rely heavily on oil, and there is a finite supply of oil, and green energy isn't offsetting carbon-based energy fast enough to be effective.
Today, we’re looking at four small-cap plays the insiders are bu... Read the Full Story |
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Communication Services | | Media and entertainment giant Warner Bros. Discovery Inc. (NASDAQ: WBD) shares initially tanked to $7.50 on its Q1 2024 earnings results. But the consumer discretionary sector giant recovered quickly on news of its new partnership with The Walt Disney Co. (NYSE: DIS) for a streaming bundle that woul... Read the Full Story |
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Communication Services | |
Live Nation Entertainment Inc. (NYSE: LYV) shares surged 10% on its Q1 2024 earnings release despite missing EPS estimates by 53 cents and still losing money. The consumer discretionary sector giant is the world's largest producer of live music concerts and entertainment events. It also owns the l... Read the Full Story |
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Consumer Discretionary | |
The wave in electric vehicles has made a sudden turn. The U.S. is looking to support its car manufacturers and protect them from foreign competition to realize the real value these companies carry—no pun intended—under the hood. Investors will find out why Tesla Inc. (NASDAQ: TSLA) co... Read the Full Story |
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Consumer Discretionary | | Quick-service Mexican chicken restaurant operator El Pollo Loco Holdings Inc. (NASDAQ: LOCO) specializes in the flame-grilled, citrus-marinated chicken. The consumer discretionary sector company develops, franchises, and operates over 470 restaurants throughout California, Nevada, Texas, Arizona, Ut... Read the Full Story |
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Thursday's Early Bird Stock Of The Day Ashford Hospitality Trust, Inc., together with its subsidiaries (Ashford Trust), is a real estate investment trust (REIT). While our portfolio currently consists of upscale hotels and upper upscale full-service hotels, our investment strategy is predominantly focused on investing in upper upscale full-service hotels in the United States that have revenue per available room (RevPAR) generally less than twice the U.S. national average, and in all methods including direct real estate, equity, and debt. We currently anticipate future investments will predominantly be in upper upscale hotels. We own our lodging investments and conduct our business through Ashford Hospitality Limited Partnership (Ashford Trust OP), our operating partnership. Ashford OP General Partner LLC, a wholly owned subsidiary of Ashford Trust, serves as the sole general partner of our operating partnership. | | View Today's Stock Pick |
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