Equity markets surged to new highs on Wednesday, but the move was cut short later in the day. The early rise was driven by a cooler-than-expected CPI release that led the market to believe the FOMC will be lenient later this year. The move was cut short by the FOMC policy statement, which unequivocally stated that there would only be one interest rate cut this year. While the CPI data is good, it is only a single month of data after months of little to no movement, and the CPI is not the Fed’s preferred gauge. The takeaway from the policy statement is that inflation has moderated but is still elevated, and a sustained movement closer to 2% is needed. Based on the trends and new Fed dot-plot data, the FOMC may back off this stance later this year and not cut rates until early 2025.
The S&P 500 set a new high and may continue higher despite the latest twist in the FOMC outlook. High inflation and interest rates are negative for the market, but the underlying cause is economic growth. In this situation, inflation and rates are a worry but insufficient to cause a major stock market correction without a change in the earnings outlook. The S&P 500 is expected to accelerate earnings growth sequentially through year’s end and year-over-year this year and next and will likely continue trending higher until that changes.
With the ongoing GameStop saga reigniting interest in meme stocks, investors, or more likely traders and speculators, are once again seeking out stocks with high short interest. As the overall market, the technology sector, and many global-leading household stocks trade near all-time highs, trader…
When traders decide to bet on stock options rather than lay their capital into buying straight shares, investors must notice two main implications of trading options rather than shares. First, options have an expiration date and a strike price, meaning whoever buys an option needs to get the direc…
Options traders are known as either the smartest of the bunch out there or the most willing to take on increased risks. When someone buys an option – particularly a call option – that person is betting on the direction of a particular stock and the timing upon which that stock will rea…
Having slid 30% from March through April, investors of Gap Inc (NYSE: GPS) would have been getting nervous. The fact that the retailer had earnings due at the end of May would only have added to this, as that kind of price action in the weeks before a report is often indicative of the smart money …
The CEO of Southwest Airlines said Wednesday he will not resign in the face of pressure from a hedge fund that wants him fired and that his leadership team will produce its own plan to boost the airline’s financial performance.CEO Robert Jordan said Southwest will present its plan in September. He d…
Ready to discover the standout stock of 2024? We’ve identified a single buy & hold gem that’s poised to redefine your portfolio. Download our exclusive report now and dive into the Insights. Click below to opt-in and receive up to two additional free bonus subscriptions. Unsubscribe at any time.
WeWork has officially emerged from bankruptcy. And all eyes are on whether its new leadership can guide the long-embattled provider of co-working office space to success.Once a Wall Street darling promising to revolutionize the world of work, WeWork took a stunning — but anticipated — fall last Nove…
The technical action in Casey’s General Stores (NASDAQ: CASY) is robust and has the market up 200% from the lows set in 2022. The rally is driven by growth, improving fundamentals, and a reinvigorated market position that is only improving. The company began a three-year plan to boost sales,…
Global shares were trading mixed on Thursday after the Federal Reserve opted to keep its benchmark interest rate unchanged. Shares were mostly lower in early trading in Europe as leaders of the Group of Seven leading industrialized nations were gathering in Italy in the wake of the European Parliame…
Leaders of the Group of Seven wealthy democracies have agreed to engineer a $50 billion loan to help Ukraine in its fight for survival that would use interest earned on profits from Russia’s frozen central bank assets as collateral. Details of the deal were still being hashed out as G7 leaders gathe…
Multimillion-dollar works by Jean-Michel Basquiat, Yayoi Kusama and Alberto Giacometti went on the market this week as the Art Basel fair opened in Switzerland.Thousands flooded the exhibition center for VIP previews before doors open to public Thursday. Arriving guests strolled through a large plaz…
2U, Inc. operates as an online education platform company in the United States and internationally. The company operates through two segments, Degree Program and Alternative Credential. The Degree Program segment provides the technology and services to nonprofit colleges and universities to enable the online delivery of degree programs. This segment targets students seeking an undergraduate or graduate degree. The Alternative Credential segment offers online open courses, executive education pro…
The Early Bird is a daily email newsletter powered by MarketBeat that covers the top stories that will impact the stock market each day. Read your copy every morning at 7:00 AM Eastern so that you can “catch the worm” when the market opens.
MarketBeat Media, LLC
345 N Reid Place, Suite 620, Sioux Falls, SD 57103. contact@marketbeat.com
