The way the market has been behaving lately—well, saying it is a minefield would be an understatement. Investors may have gotten—wrongfully—used to the easy money days of 2020-2022, when the Federal Reserve (the Fed) was forced to cut interest rates to near zero as a result of the COVID-19 pandemic. Low rates and cheap money have made just about any stock a winner in the past couple of years; however, that trend could be about to change. With sticky inflation rates and a disappointing 1.6% gross domestic product (GDP) growth rate in the past quarter, the U.S. could be facing stagflation (low economic growth with high inflation). A lackluster economy that drags consumer—and business—buying power lower each year makes for a tricky stock market. .
Equity markets began the week on a cautious footing. The S&P 500 is within striking distance of a new all-time high but traded within a tight range and closed near break-even for the session. The caution is due to the week's events, including key earnings reports and inflation data. On the earnings front, reports from major retailers like Home Depot and Walmart will set the tone for the rest of the reporting season, while inflation data may be hot. The CPI index is expected to accelerate at the headline level, remain hot in all other comparisons and may exceed expectations.
The risk for the market is the outlook for the FOMC. The market expects the FOMC to cut rates soon, possibly over the summer and needs the data to align with that forecast. If not, the market could resume the sell-off that began in March and, this time, take the S&P 500 index to a new low. In that scenario, the reality of higher-for-longer means rates are normalized at the highest levels in two decades and will remain high indefinitely, sapping the outlook for economic growth and corporate earnings.
The way the market has been behaving lately—well, saying it is a minefield would be an understatement. Investors may have gotten—wrongfully—used to the easy money days of 2020-2022, when the Federal Reserve (the Fed) was forced to cut interest rates to near zero as a result of the COVID-19 pandemic. Low rates and cheap money have made just about any stock a winner in the past couple of years; however, that trend could be about to change. With sticky inflation rates and a disappointing 1.6% gross domestic product (GDP) growth rate in the past quarter, the U.S. could be facing stagflation (low economic growth with high inflation). A lackluster economy that drags consumer—and business—buying power lower each year makes for a tricky stock market.
Obama's Forever Term [Exposed] or Obama Biden has already won 2024
Exposed: the shocking election plot that will forever enshrine Obama's destructive, Marxist vision for America… A plot that could hand him and his allies near-total control over the government, your way of life, and your future.
The man at the center of the pandemic meme stock craze appeared online for the first time in three years, sending the prices of the quirky and volatile shares sharply higher Monday. Keith Gill, better known as "Roaring Kitty," posted an image Sunday on the social platform X of a man sitting forward in his chair, a meme used by gamers when things are getting serious. He followed that tweet with a YouTube video from years before when he championed the beleaguered company GameStop saying, "That's all for now cuz I'm out of breath. FYI here's a quick 4min video I put together to summarize the $GME bull case."GameStop in 2021 was a video game retailer that was struggling to survive as consumers switched rapidly from discs to digital downloads.
Analysts' sentiment is a powerful force in the market that can make the difference between winning and losing a trade. The stocks on this list are among the Most Upgraded Stocks tracked by MarketBeat and have bullish support from analysts. They also have secular tailwinds to support their business growth, suggesting analysts' support will remain firm this year and continue to lead their markets higher. The takeaway for investors is that Domino’s Pizza (NYSE: DPZ), Target (NYSE: TGT), and Texas Roadhouse (NASDAQ: TXRH) can all set new highs this year while paying solid dividends. Domino’s Pizza Rally has Legs Domino’s is not a new name on the list of Most Upgraded Stocks, but it is creeping up the rankings, entering the top ten in Q2 2024.
The International Monetary Fund, Argentina's biggest creditor, agreed Monday to release the next tranche of loans due under a bailout program, endorsing government austerity measures so severe they even surpass the terms of its $43 billion loan. The IMF deal follows the completion of its review of Argentina's compliance record and confirms the next $792 million payment will become available to the government in June, reassuring markets and boosting confidence among bankers about Argentina's prospects as it goes through its worst economic crisis in two decades. The decision by the fund's techni...
When investors think about their potential winnings through the stock market, two methods typically get the lion’s share of attention. The most straightforward appreciation will happen through the classic buy low and sell high (with a little luck). Second, dividend income has become a common preference during high inflation. Focusing on dividends, the primary method managements use to repay their shareholders, may not be the most effective way for investors to get their money back. In just a bit, it will become clear that share buybacks are a much better way for shareholders to ...
A fraud trial began Monday for the founder of a hedge fund that cost leading global investment banks and brokerages billions of dollars when it collapsed.A prosecutor portrayed Bill Hwang, the founder of Archegos Capital Management, as a greedy man hoping to become a Wall Street legend while his lawyer said he was an honest investor fearless about losing money in stocks he believed in. Hwang is on trial along with his former CFO Patrick Halligan. Hwang and his co-conspirators artificially inflated nearly a dozen stocks before a meltdown three years ago wiped out the company he created and caused the collapse of over $100 billion in market value, prosecutors said.
The Night Owl is an evening newsletter published by The Early Bird and powered by MarketBeat. The Night Owl covers top stories on the stock market and outlook on interesting stocks. If you give a hoot about the market, read your copy every Tuesday, Thursday, and Sunday evening.
MarketBeat Media, LLC 345 N Reid Place, Suite 620, Sioux Falls, SD 57103. contact@marketbeat.com
Post a Comment
Post a Comment