Good morning. Consumers expect inflation to increase in the months ahead. Part of the reason is...
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.
| | | | DOW 35,459.29 | +0.50% | | | | S&P 4,582.23 | +0.99% | | | | NASDAQ 14,316.66 | +1.90% | | | | *As of market close | | • | Markets closed higher on Friday, as inflation data continued to show a decline. | | • | Oil rose 0.4 percent, closing at $80.44 per barrel. | | • | Gold rose 0.6 percent, last going for $1,998 per ounce. | | • | Cryptocurrencies traded higher, with bitcoin at $29,310 at the stock market close. | | | | | | | | | | Invest With Companies Getting the Trends Right | | | | In many industries, several companies will compete for leadership. It can change over time, particularly if market conditions provide unusual opportunities. The past few years has seen wild swings in a number of sectors. Tech stocks soared during the pandemic amid the rise for remote work and contactless payments. Then tech stocks came back down, as their valuations were wildly expensive when interest rates started to rise. » FULL STORY | | | | | | Insider Activity Report: Calavo Growers (CVGW) | | | | Lecil Cole, CEO at Calavo Growers (CVGW) recently added 75,000 shares. The buy increased the CEO's stake by 17 percent, and came to a total cost of $2.275 million. The CEO Was joined by a director two days later, who bought 2,000 shares, increasing his stake by 6 percent. Over the past year, one director has been a seller, while the CEO has bought on three occasions so far. » FULL STORY | | | | | | Unusual Options Activity: Applied Digital Corporation (APLD) | | | | Data center operator Applied Digital Corporation (APLD) has moved up nearly five-fold from its 52-week lows. One trader is betting shares will continue to rise through the end of the year. That's based on the January 2024 $11 calls. With 172 days until expiration, 6,902 contracts traded compared to a prior open interest of 127, for a 54-fold rise in volume on the trade. The buyer of the calls paid $2.80.
» FULL STORY | | | | | | • | PCE Inflation Drops to 4.1 Percent
Personal consumption expenditure (PCE) inflation has dropped to 4.1 percent year-over-year for the month ending in June. This measure of inflation is the preferred metric used the Federal Reserve to gauge the impact of inflation. PCE came in at 4.6 percent in May, showing a similar drop to consumer price inflation (CPI). | | | | • | Bank of Japan Loosens Yield Curve Control
The Bank of Japan is moving towards having greater flexibility in its monetary policy. To that end, the central bank is loosening its yield curve control, which allows bond yields in Japan to have higher rates. The move was somewhat unexpected by the market, and Japanese government bonds and stocks dropped on the news. | | | | • | Oil Majors Hold Up Fine Amid Volatile Energy Prices
Several major oil companies reported earnings on Friday, and even with price fluctuations, profits remain strong, if a bit off of their peak. Price swings in oil and natural gas had little impact on the bottom line for oil majors such as ExxonMobil (XOM) and Chevron (CVX). | | | | • | Consumer Demand Rising For Sweets
Food producer Mondelez International (MDLZ) reports that there's been an increased demand for sweets so far this year. The company expects 12 percent organic growth compared to prior estimates for 10 percent. Grocery prices have held steady in recent months, which may also be enticing consumers to spend on good such as chocolate and cookies. | | | | • | AMD Looks to Invest in India
Semiconductor manufacturer Advanced Micro Devices (AMD) is looking to invest about $400 million over the next five years in India. The company is looking to create a design center in Bengaluru, joining other major tech firms that are expanding into India. The company has already been in the country for two decades, but the design center will add another 500,000 square feet of space. | | | | | | TOP | | DISH | 11.605% | | | TROW | 8.266% | | | NWL | 7.707% | | | CINF | 6.851% | | | JD | 6.714% | | | BOTTOM | | LYV | 7.841% | | | ENPH | 7.476% | | | JNPR | 6.938% | | | MHK | 6.912% | | | ANET | 6.15% | | | | | | | | | Those very high rates that scared me and the market earlier on in the year don't seem to be having as much of a negative effect as I had feared. And that, combined with the fact that Powell now is saying 'I'm going to look at both sides of the equation,' I think is very positive for the markets. | | - Jeremy Siegel, professor at the Wharton School, on the market's resilience and strength in the economy despite interest rates rising to their highest levels in 25 years. | | |
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