Equity markets retreated from a record high on Thursday as traders showed caution ahead of the NFP release today. The NFP is expected to confirm healthy labor markets but show softening that may lead the FOMC to act. The latest read from ADP shows jobs growing, but at a sluggish pace of 150,000, below what many deem strong or robust levels. The risk for investors expecting the FOMC to cut rates sooner rather than later is that 150,000 net new jobs, stable unemployment, and rising wages are enough to keep the FOMC from cutting, given the state of inflation. The pace of inflation is slowing but still sufficiently high to warrant tight policy. At the current pace of minus ten basis points in five months, the first cut may not come until next year.
Results from GameStop will be at the top of everyone’s list Friday. The meme stock is set to report before the bell and may issue a better-than-expected report and spark another massive rally. The caveat is that better-than-expected would be relative to the low bar set by management, which is still terrible given the expectation for significant revenue and profitability declines. The brightest spot of the report will be the balance sheet, which will reflect the recent, highly dilutive share sale.
Shares of Ollie’s Bargain Outlet (NASDAQ: OLLI) are heading higher following the Q1 release and will likely continue rallying this year because of its market-leading growth. The company is a growing opportunity in off-price retail, outpacing the industry trend. The latest report includes outperformance, increased guidance, and an improved long-term target that suggests the rally may go on for years. The stock is not cheap, trading at 25X this year’s guidance, but the valuation is warranted given the growth outlook. Analysts already forecasting significant growth in 2025 are now underestimating the business.
According to Harbinger Research, this small uranium outfit stands on one of the largest uranium deposits in South Dakota. One that could fill their bank account with millions in profits.
Robinhood Markets Inc. is buying crytocurrency exchange Bitstamp for about $200 million in cash as the company looks to speed up its cryptocurrency expansion globally.Bitstamp, founded in 2011, has offices in Luxembourg, the UK, Slovenia, Singapore, and the US. It has more than 50 active licenses and registrations worldwide and customers across the European Union, United Kingdom, United States and Asia.Robinhood said Thursday that this will be its first institutional business. “Bitstamp’s highly trusted and long standing global exchange has shown resilience through market cycles. By seamlessly…
Tesla’s (NASDAQ: TSLA) stock is under pressure and at risk of a deep implosion. The company’s high valuation alone makes it a target, and there are many risks for investors. Among them is the upcoming vote on CEO Elon Musk’s compensation package and a sluggish EV market. EV sales are slowing globally and significantly impact current operations and plans. The takeaway is that Tesla is amid a major turnaround, focused on the future, while faced with near-term obstacles that could derail the market and send the stock price down by 25% or more. The Future of Elon Musk’s AI Dreams Are in the Balance Tesla shareholders face a critical vote on June 13th. Elon Musk’s $56 billion controversial pay package is among the items for approval.
The average rate on a 30-year mortgage dipped to just below 7% this week, little relief for prospective homebuyers already facing the challenges of rising housing prices and a relatively limited inventory of homes on the market
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