Good MorningEquity markets advanced following the FOMC policy statement, rebounding from the week's lows, but couldn't hold the gains until the close. The FOMC held rates steady as expected but altered its statement, citing a lack of further progress in the fight against inflation. The news is negative for equities because higher interest rates impact consumer spending.
Results from McDonald's, Kraft Heinz, and Starbucks suggest consumers are pulling back on spending, which could lead to a nationwide recession. Consumer spending is nearly 70% of the economy, so it won't take a large decline to cause a recession. The question is how long the recession will last; if the FOMC cannot cut rates because of persistently high inflation, it could last long.
The S&P 500 is in correction and could continue to move lower over the next few days to weeks. The market has been supported by the idea that FOMC's next move is to cut rates, but the risk that they won't cut rates is growing, leading the market to reset its outlook for earnings growth. The market was pricing in the policy pivot for June; the way inflation is running, it may not happen until next year. Featured: Trump goes "all-in" on Grand Canyon energy breakthrough (Ad) 
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Technology | |
Advanced Micro Devices (NASDAQ: AMD) share prices inflated in 2023 and early 2024 on hopes for an AI boom like NVIDIA (NASDAQ: NVDA). The share price is down 35% from that peak because the boom didn’t happen, or did it? Unlike NVIDIA, Advanced Micro Devices is a highly diversified semiconduc... Read the Full Story |
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Consumer Discretionary | |
The bar was set high for Amazon (NASDAQ: AMZN), so the Q1 results were doubly strong. The takeaway is that the multinational retail and web services conglomerate is firing on all cylinders, providing favorable guidance, and analysts are lifting their targets. What this means for investors is that ... Read the Full Story |
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Markets | |
Professional traders often say that the first move is always wrong; how much traction that saying has over shares of Chesapeake Energy Co. (NASDAQ: CHK) is up for debate. After reporting its first quarter 2024 earnings, arguably the most critical earnings as they set the tone for the rest of the y... Read the Full Story |
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From Our Partners | | Palantir, Micron and SanDisk show how fast a stock can become the trade everyone suddenly wants. That's often when investors make their costliest mistake: arriving after the easy part of the move is gone.
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Industrials | |
https://www.marketbeat.com/stocks/NYSE/HWM/Year-to-date, the industrials sector has demonstrated significant outperformance, surging by over 7% compared to the benchmark SPY ETF, which has seen a more modest increase of just over 5.6%.
Stocks in the aerospace and defense industries have notably ... Read the Full Story |
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Finance | |
The first quarter of the 2024 earnings season has kicked off. While markets focus primarily on financial stocks to lead the way into the new year, others focus on more immediate opportunities based on economic trends that have already started to take on water. Shares of FMC Co. (NYSE: FMC) could b... Read the Full Story |
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From Our Partners | | Porter Stansberry flew the Porter and Co. team 3,300 miles to Dublin to investigate a 17-year investing experiment called Project Prophet - and documented everything on film.
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Technology | | Internet-of-Things (IoT) technology provider Impinj Inc. (NASDAQ: PI) is riding a strong secular tailwind as the world continues to become more connected. The computer and technology sector leader manufacturers radio identification (RAIN) radio frequency identification (RFID) tag chips and provides ... Read the Full Story |
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Finance | |
PayPal Holdings, Inc. (NASDAQ: PYPL) is one of the global leaders in the financial solutions sector. PayPal’s earnings for the first quarter of 2024 were recently released, offering valuable insights into PayPal’s financial performance and strategic direction. PayPal’s analyst co... Read the Full Story |
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Healthcare | | Health insurer Humana Inc. (NYSE: HUM) reported its Q1 2024 earnings report to a less dramatic reaction than it got from its Q4 2023 report, causing shares to tumble more than 13%. Investors are still reeling over its vastly lowered EPS guidance stretching out to 2025. The so-called guidance provide... Read the Full Story |
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Technology | | Once known as "Big Blue," computer and technology sector giant International Business Machines Co. (NYSE: IBM) shareholders are now the ones with the blues. Shares of IBM fell 8.25% on a not-so-terrible but not-so-great Q1 2024 earnings report, which saw soft revenues of $14.46 billion and missed co... Read the Full Story |
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Technology | |
NXP Semiconductors (NASDAQ: NXPI) is trending higher and on track to hit the $300 level. The company’s diversified business, position in the industrial chip market, and pivot back to growth are why. It will take a little more time for end-market normalization to turn into a business tailwind... Read the Full Story |
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Thursday's Early Bird Stock Of The Day Conn's, Inc. operates as a specialty retailer of durable consumer goods and related services in the United States. It operates in two segments, Retail and Credit. The company's stores offer home appliances, such as refrigerators, freezers, washers, dryers, dishwashers, and ranges; and furniture and mattress, including furniture and related accessories for the living room, dining room, and bedroom, as well as flat and other mattresses. Its stores also provide consumer electronics comprising LED, OLED, QLED, 4K Ultra HD, 8K televisions, home theater audio, video game consoles, arcade gaming products, and portable audio equipment; and home office products, including computers, tablets, monitors, and accessories. In addition, the company offers short- and medium-term financing to its retail customers; and product support services, which comprise delivery and installation services, credit insurance products, product repair services, and repair service agreements. It operates retail locations in Alabama, Arizona, Colorado, Florida, Georgia, Louisiana, Mississippi, Nevada, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, and Virginia. The company was founded in 1890 and is headquartered in The Woodlands, Texas. | | View Today's Stock Pick |
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