Wall Street held firmer on Wednesday, a day after strong reports on the economy hurt U.S. stocks by stirring up worries that inflation and interest rates may remain higher than expected.The S&P 500 rose 0.2% to recover a bit of its 1.1% slump from the day before. The Dow Jones Industrial Average....
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The Early Bird Newsletter
The Early Bird Newsletter

Thursday, January 9th

Good Morning

Equity markets continue to struggle with traction in 2025. Despite another round of good labor data, Wednesday's action saw the S&P 500 hover near Tuesday's low and at the low end of a two-month trading range. The ADP figure was weaker than expected but still solid at 122,000 and compounded by a strong initial claims report. The initial claims fell to a 1-year low in the last week of December, with total claims dropping by nearly 100,000, and both figures aligning with healthy labor conditions.

The bad news is that strong labor markets will keep the FOMC from cutting rates aggressively in 2025, if at all. The market expects the FOMC to cut in 2025, but the odds of deep cuts are diminishing quickly, with only a 50/50 chance for two 24 basis point reductions by year's end. If the next round of inflation data is still hot, those odds of two cuts in 2025 could fall to zero.

Featured: I was wrong. Dead wrong. (Porter & Company)

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Markets

Stock market today: Wall Street holds firmer following Tuesday's slide

Wall Street held firmer on Wednesday, a day after strong reports on the economy hurt U.S. stocks by stirring up worries that inflation and interest rates may remain higher than expected.The S&P 500 rose 0.2% to recover a bit of its 1.1% slump from the day before. The Dow Jones Industrial Average...

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Markets

Stock market today: Global indexes are mixed as the US stock market remains closed

World shares were mixed on Thursday as the U.S. stock market remained closed to observe a National Day of Mourning for former President Jimmy Carter. London's FTSE 100 climbed 0.8% to 8,319.69 as the value of the British pound slid against the U.S. dollar amid worries about the United Kingdom's econ...

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Markets

Natural Gas Demand to Surge: Top 3 Stocks and ETFs to Consider

The natural gas and liquified natural gas (LNG) industry has struggled for the last few years but is gaining traction today and is expected to sustain itself in 2025. Increasing demand only partially offset by supply supports the price action in LNG and creates a strong tailwind for U.S. LNG st...

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Markets

Moderna Shares Spike on H5N1 News—What’s Next for Investors?

Shares of Moderna Inc. (NASDAQ: MRNA) surged over 12% after news of the first confirmed death from the H5N1 bird flu in the United States. At one point, the stock had climbed over 14% before returning late in the trading session. However, the stock retreated after hours, trading at $47.53, ...

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Markets

Nebius Group (NBIS): A Small-Cap Backed by NVIDIA

Several small and mid-cap companies have captured investor attention over the previous year thanks to NVIDIA’s (NASDAQ: NVDA) disclosed investments in these firms. One recent standout is Nebius Group (NASDAQ: NBIS), a technology company now drawing comparisons to other NVIDIA-backed s...

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Markets

Here are some of China's New Year resolutions to boost its economy

China’s leaders are bracing for shocks to the economy from higher tariffs threatened by U.S. President-elect Donald Trump once he takes office. To help rev up an economy bogged down by a property crisis and disruptions during the pandemic, the ruling Communist Party is rolling out a slew of measures...

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Markets

Federal Reserve officials at December meeting expected slower pace of rate cuts ahead

Federal Reserve officials at their meeting Dec. 17-18 expected to dial back the pace of interest rate cuts this year in the face of persistently elevated inflation and the threat of widespread tariffs and other potential policy changes

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Markets

Top Fed official backs new rate cuts even if Trump tariffs materialize

A top policymaker at the U.S. Federal Reserve said Wednesday that he still supports cutting interest rates this year, despite elevated inflation and the prospect of widespread tariffs under the incoming Trump administration. Christopher Waller, an influential member of the Fed's board of governors, ...

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Markets

Cal-Maine Foods: A Defensive Play With a Cage-Free Future

Cal-Maine Foods, Inc. (NASDAQ: CALM) is the largest producer and distributor of fresh shell eggs in the United States, and it presents a compelling investment case in the current market. As a dominant player in a defensive, essential industry, it offers a degree of stability amidst economic unce...

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Markets

Discover 2 Under-the-Radar Aerospace Stocks Set for 2025 Growth

The aerospace sector had a strong 2024, but 2025 may be even stronger with lower interest rates, fuel costs, and less regulation under Trump’s Presidency. During the year, aerospace giant Boeing Co. (NYSE: BA) suffered a number of challenges that hurt its reputation, including a $5.5 billion...

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Thursday's Early Bird Stock Of The Day

A Stock With Recent Earnings Beat:Costco Wholesale (NASDAQ:COST)

Costco Wholesale

Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories. It offers merchandise, such as sundries, dry groceries, candies, coolers, freezers, deli, liquor, and tobacco; appliances, electronics, health and beauty aids, hardware, garden and patio products, sporting goods, tires, toys and seasonal products, office supplies, automotive care products, postages, tickets, apparel, small appliances, furniture, domestics, housewares, special order kiosks, and jewelry; and meat, produce, service deli, and bakery products. The company also operates gasoline, pharmacies, optical, food courts, hearing-aid centers, and tire installation centers; and offers business delivery, travel, grocery, and various other services online. It also operates e-commerce websites. The company was formerly known as Costco Companies, Inc. and changed its name to Costco Wholesale Corporation in August 1999. Costco Wholesale Corporation was founded in 1976 and is based in Issaquah, Washington.

Should I Buy Costco Wholesale Stock? COST Bull and Bear Case Explained

These insights were generated using artificial intelligence. They are based on proprietary MarketBeat data, news articles, and custom LLM A.I. algorithms. This analysis of Costco Wholesale was last updated on Monday, May 05, 2025 at 6:15 PM.

Costco Wholesale Bull Case

  • Costco's stock is currently priced around $1,008.30, reflecting strong market confidence and potential for growth.
  • Recent analyst upgrades have increased price targets, with some suggesting a target as high as $1,100.00, indicating optimism about future performance.
  • The company has a solid consensus rating of "Moderate Buy" from analysts, with a significant number recommending the stock as a buy, which can signal strong future performance.
  • Costco has demonstrated resilience in the market, maintaining a low debt-to-equity ratio, which suggests financial stability and lower risk for investors.
  • With a market capitalization of approximately $447.37 billion, Costco is positioned as a major player in the retail sector, providing a sense of security for investors.

Costco Wholesale Bear Case

  • The stock has a high P/E ratio of 59.21, which may indicate that it is overvalued compared to its earnings, potentially leading to a price correction.
  • Insider selling has been observed, with executives recently offloading shares, which could raise concerns about their confidence in the company's future performance.
  • Costco's stock has shown volatility, with a 52-week high of $1,078.24 and a low of $746.48, suggesting potential risks for investors looking for stability.
  • The company's quick ratio of 0.43 indicates that it may struggle to meet short-term obligations, which could be a red flag for risk-averse investors.
  • Market conditions and economic uncertainties could impact consumer spending, which is critical for Costco's revenue growth, posing a risk to investors.
View Today's Stock Pick

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