Equity markets retreated on Thursday after a hot reading of the Produce Price Index raised fears that higher-for-longer means what it sounds like. The PPI accelerated at the core and headline levels, suggesting that consumer-level inflation will remain hot. In this environment, it is unlikely the FOMC will cut rates before mid-summer, and the first cut may not come until late in the year.
The risk for markets is the outlook for earnings. The market has priced in a significant upswing in earnings power for the back half of 2024 that may not come. This has the market set up for a correction that could be severe, given the proper stimulus. The catalyst for the correction may be in the earnings forecasts, which are expected to fall from their current levels. With only a few weeks left until the start of Q1 reporting, it is possible that the catalyst could come soon.
Watch for robust earnings growth at big techs such as Meta Platforms Inc. (NASDAQ: META), Nvidia Corp. (NASDAQ: NVDA), Microsoft Corp. (NASDAQ: MSFT) and Apple Inc. (NASDAQ: AAPL) to increase the rate of share buybacks this year, says a recent report from Goldman Sachs. Goldman Sachs is for…
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Wall Street closed out its second straight losing week Friday, giving back some of the gains that helped push the stock market to an all-time high earlier in the week. The S&P 500 fell 0.6%, its third straight loss. The benchmark index hit a record high on Tuesday, but mostly wavered in the days…
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China’s markets regulator on Friday renewed its efforts to pep up the stock market, pledging to raise the quality of companies listed on domestic markets. The China Securities Regulatory Commission issued draft guidelines to more strictly vet applications for share listings and to more closely overs…
This week, Dollar General Inc. (NYSE: DG) and Dollar Tree Inc. (NASDAQ: DLTR) issued earnings reports showing that the lower-income consumers that comprise a significant part of their customer base remain under pressure. Both retail stocks are down after their respective reports. It didn’t …
Reports of a leaked meeting between Elon Musk and staff at X.com could send shockwaves through the crypto market. Musk revealed a “mind-blowing” plan to take over the global payment system. This development could help add $16 trillion to a crypto asset class in the next six years. Experts predict one coin could spike to record highs starting this month as a result.
Jabil Inc. (NYSE: JBL) stock price is down 10% in early trading, extending a decline that began before the Q2 release and may fall further. However, the decline is due more to market mechanics than the results or outlook, setting this market up to resume its trend soon. The analysts are bulli…
Since listing on the New York Stock Exchange at the end of January, shares of Flutter Entertainment plc (NYSE: FLUT) have gone from strength to strength. They’ve gained more than 40% since January’s low and are closing in on the all-time high they’d previously traded in 2021.&n…
Americans picked up their spending a bit in February after pulling back the previous month. But last month’s gain was weaker than expected, and January’s decline was revised even lower, suggesting that many are growing more cautious with their money.Retail sales rose 0.6% last month after falling a …
Consumers became slightly less optimistic about the economy this month, though they continue to expect inflation to cool further, a potential sign that price increases will keep slowing. The University of Michigan’s consumer sentiment index, released Friday in a preliminary version, slipped to 76.5 …
Lori Shelton can’t fathom ever having the money to buy a home — and that’s a major reason why so many voters feel down on the economy ahead of this year’s presidential election.Shelton, 67, drives an Uber to help pay rent in Aurora, Colorado. An advance on her pay covered her apartment’s security de…
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