Monday, February 19, 2024

🔽This Commodity’s Drop May Help Ease Inflation

Good morning, and Happy President's Day. Inflation has come down significantly in the past year...
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.

Good morning, and Happy President's Day. Inflation has come down significantly in the past year, but some parts of the market have been stubbornly high. One such area is food. Staples such as cocoa have been making new highs.

On the bright side, corn is dropping, and has now reached a three-year low. Supplies are on track to reach their highest level since 1987. And since corn is a staple for a number of foodstuffs, its drop bodes well for getting that final bit of inflation under control.

Investors may want to look at the packaged food companies, as they're still off their highs. Declining prices on a key input could mean higher profitability in the quarters ahead.

Now here's the rest of the news:

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MARKETS
DOW 38,627.99 -0.37%
S&P 5,005.57 -0.48%
NASDAQ 15,775.65 -0.82%
*As of market close
Markets sank on Friday, as inflation data came in hotter than expected.
Oil rose 1.4 percent, closing at $79.12 per barrel.
Gold rallied 0.5 percent, ending at $2,024 per ounce.
Cryptocurrencies traded mixed, with bitcoin at $51,861 at the stock market close.

Today's TOP TIPS
There Are Always Overlooked Opportunities in Out-of-Favor Sectors
With so much focus on tech stocks over the past year, other sectors of the market look like a relative bargain. Many companies have been improving their earnings and revenues. But being in an out-of-favor sector means shares may become a better value.

One such sector is the defense sector. It tends to perform well over time. And with rising global tensions, it could see further solid returns this year.

» FULL STORY

Insider Activity Report: Banc of California (BANC)
James Barker, a director at Banc of California (BANC) recently added 10,000 shares. The buy increased his holdings by 6 percent, and came to a total cost of $131,590.

The director was the last buyer of shares with another 10,000 share pickup last September. A cluster of company insiders were buyers last May, following the selloff in the bank's shares. There have been just two insider sales over the past year.

» FULL STORY

Unusual Option Activity: Carvana (CVNA)
Used car e-commerce firm Carvana (CVNA) is up nearly 400 percent over the past year. One trader is betting on a further rally ahead.

That's based on the May $45 calls. With 87 days until expiration, 21,757 contracts traded compared to a prior open interest of 296, for a 74-fold rise in volume on the trade. The buyer of the calls paid $18.37 to make the bullish bet.

» FULL STORY

IN OTHER NEWS
Retail Sales Slow in January

U.S. retail sales fell by 0.8 percent in January, according to data from the Commerce Department. The reversal breaks two months of increases, and is well in excess of expectations for a 0.1 percent decline. Gas stations and home improvement stores saw the biggest drops, with a 1.7 and 4.1 percent decline, respectively.
Chinese Stocks Become Value Play Amid Stalled Economy

China's economy was expected to grow faster in 2023, as the country fully ended its harsh pandemic-era lockdowns. Instead, growth has been tepid, consumer confidences has slid, and the country is at its worst economic performance in 40 years. That's leading some to see the country as a potential value investment.
Wells Fargo Resolves Fake Account Scandal Complaint

Megabank Wells Fargo (WFC) saw shares soar last week, as the Office of the Comptroller of the Currency reported that it had closed the 2016 consent order placed on the bank for opening fake accounts. The bank has made sufficient progress in revamping its system to guard against customer harm.
Microsoft to Bring Xbox Games to Other Consoles

Tech giant Microsoft (MSFT) will release four video games on alternative consoles. The company acquired Activision Blizzard for $75 billion last October, and gaming now accounts for 11 percent of the company's revenues. The company has not specified which of the four games will be released on other consoles.
Lucid Motors Cuts Cheapest EV Price By Over $8,000

EV manufacturer Lucid Motors (LCID) will drop the base model of its Lucid Air Pure from $77,400 to $69,900. A similar cut is being made for the Lucid Air Touring model. Lucid sold 6,001 cars across the United States in all of 2023, and already made price changes last year.

S&P 500 MOVERS
TOP
AMAT 6.235%
VMC 5.329%
DG 4.762%
ALB 4.136%
TRGP 3.629%
BOTTOM
DLR 8.748%
ADBE 7.186%
PARA 4.567%
UBER 3.889%
CARR 3.836%

Quote of the Day
There's plenty of liquidity in the system. What's interesting is that the deposit flows from all the smaller banks, there was outflows around March of 2023. And we're almost back now, with the smaller banks, at deposit levels where we were before March Madness hit. So, there really isn't a liquidity problem today.
- Gerard Cassidy, analyst at RBC Capital, on how the regional banks look well capitalized nearly a year after trouble emerged for these institutions.

Sponsored Content
3,000+ Private Investors Are Stoked About this Wheel Innovation
When you're one of TIME Magazine's Best Innovations of 2023, investors listen. But when you also have the potential to reduce 28% of microplastics in oceans, the whole world is onboard.

Meet the company literally reinventing the wheel. Global Air Cylinder Wheels (GACW) is taking investors as they pioneer what could be a global shift from rubber tires to wheels that are made 100% of steel and don't shed rubber.
  • The global tire market is worth more than $300B, and GACW is carving out a niche in the Off-the-Road (OTR) vehicle market as a start.
  • They already have $3M+ in sales and aim to later target bicycles, automotive, and military vehicles with a more safe and cost-efficient wheel.
With 3,000+ investors so far, this is only the beginning for GACW.

Invest in GACW to be part of their global expansion effort.

Disclosure: This is a paid advertisement for Global Air Cylinder Wheels, Inc. Reg CF offering. Please read the offering circular at invest.globalaircylinderwheels.com


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