Good MorningEquity markets pulled back for the third day on Thursday as traders braced for today's PCE inflation report. The PCE price index is the Fed's favored gauge of consumer inflation and is expected to be hot. The consensus estimates have the figure pulling back slightly compared to last month but still running well above the target 2.0% rate. The data should align with the idea that the FOMC will cut rates but not that it will soon. Investors should expect the Fed to keep policy as-is until late this year, if not into 2025.
The question is, what will the market do? The market has been rallying on economic resilience and S&P 500 earnings growth and may continue higher regardless of the data. In this scenario, the causes of high inflation and high interest rates will persist and could lead to stagflation. However, a firm indication that no rates are coming soon could cause the market to reset the outlook for this year and next year's earnings growth and reset the S&P 500 valuation along with it. Results from names like Salesforce, which included slowing growth and tepid guidance, helped set the market up for a large contraction. Featured: The #1 day to buy Walmart stock (DTI) 
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Markets | | | After reporting its first quarter 2024 financial results, shares of Foot Locker Inc. (NYSE: FL) jumped by as much as 40% as markets reacted to what could be the retail sector’s latest turnaround story. Now that the stock is consolidating to the end of the week, investors can use this breathe... Read the Full Story >> |
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Markets | | | AI is booming, but not for stocks like MongoDB (NASDAQ: MDB), UiPath (NYSE: PATH), and Dell Technologies (NYSE: DELL), which are all thought to be well-positioned for the industry. The caveat is that AI is dominated by a few mega-cap tech companies, which are seeing the most gains. AI is aiding gr... Read the Full Story >> |
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Stocks | | | An already verdant May for Wall Street finished with another push higher as stocks rallied Friday after a report showed inflation is at least not worsening.The S&P 500 rose 0.8% to close its sixth winning month in the last seven. The main measure of the U.S. stock market's health set an all-time... Read the Full Story >> |
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Markets | | | There are plenty of ways for investors to gauge the amount of activity, or lack thereof, within an industry. One way can be seen in how the most prominent players interact with each other, mainly any rumors of mergers and acquisitions (M&A). Today, there is one such instance in the energy sect... Read the Full Story >> |
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Markets | | | Saudi Arabia said Friday it will sell a second sliver of stock in its state oil giant Aramco worth billions of dollars, its first tranche since its initial public offering back in 2019.Saudi Aramco, formally known as the Saudi Arabian Oil Co., acknowledged the stock sale in a corporate disclosure on... Read the Full Story >> |
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Markets | | | Costco Wholesale (NASDAQ: COST) is highly valued because the pullback in price action provides a strategic opportunity to capitalize on it. The reason is evident in the results and in the analysts' increased price targets. Among the details are industry-leading growth, market share gains, outperfo... Read the Full Story >> |
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Markets | | | Narendra Modi swept to power a decade ago on promises to transform India's economy, and it would be hard to argue he hasn't made strides. As he seeks a third term as prime minister, the country's economic growth is the envy of the world, its stock markets are booming, and new buildings and highways ... Read the Full Story >> |
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Markets | | | Having hit an all-time high earlier this month, tech titan Amazon.com Inc (NASDAQ: AMZN) shares have been taking a bit of a break. They’ve softened to the tune of 7% over the past three weeks, but in the grand scheme of things, this isn’t anything to be worried about. The 130% r... Read the Full Story >> |
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Markets | | | Storied Premier League club Everton faces an uncertain future after a proposed takeover by American investment firm 777 Partners collapsed on Saturday.The Miami-based private investment firm reached a deal in September to buy out Everton's majority shareholder, Farhad Moshiri, who has a 94.1% stake.... Read the Full Story >> |
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Markets | | | Inflation ticked up to an annual 2.6% in Europe in May, according to official figures on Friday. That's more than expected as a painful spike in consumer prices takes its time to fade away.It's unlikely to stop the European Central Bank from making a first interest rate cut next week — and moving ah... Read the Full Story >> |
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