The equity market started the week on a bad footing, with the S&P 500 falling more than 1% at the sessionâs low. The move was driven by increased fears of an escalating Middle Eastern conflict, which was also seen in a sharp rise in the VIX and the oil price.
The price of WTI surged nearly 4% on Monday, extending the rally that began two weeks ago. Now, WTI is back above critical resistance targets at $75, including shortâand medium-term moving averages, and may continue to accelerate without additional catalysts. In that scenario, the high oil price will cut into corporate profits, sustain consumer-level inflation at a higher-than-wanted pace, and significantly alter the outlook for interest rate cuts.
The outlook for interest rate cuts is already changing because of the strong NFP report on Friday. The NFP shows labor market strength, alleviating the fear of a recession it caused earlier this year. While interest rates will likely continue to fall this year and next, the floor for rates may be higher than the market is currently pricing. As it is, the market expects another 150 basis points of cuts by the end of 2025.
U.S. stocks slid Monday after Treasury yields hit their highest levels since the summer and oil prices continued to climb.The S&P 500 dropped 1%, though itâs still close to its all-time high set a week earlier. The Dow Jones Industrial Average fell 398 points, or 0.9%, coming off its own record,âŚ
Ciena Co. (NYSE: CIEN) can be considered a legacy company in the computer and technology sector when it comes to the Internet. It was one of the original manufacturers of optical fiber, which provided networking switches and connectivity solutions since 1992. The company has managed to stay releâŚ
Hong Kongâs share benchmark plunged more than 9% and other Chinese markets gave up much of their early gains Tuesday as traders dumped shares following recent rallies. Shares elsewhere in Asia and in Europe were mostly lower, while U.S. futures were little changed. Oil prices fell. The Hang Seng indâŚ
A strange force has seized control of Wall Street. Hedge funds are already moving their money⌠and preparing for even stranger days ahead. Over 320 hedge funds have quietly sold THIS famous stock â to prepare for a dramatic market shift
Exxon Mobil (NYSE: XOM) is still a cheap stock, but the value wonât last long. Technically speaking, the market has broken a significant resistance point and is on track to hit the $138 level soon and $200 over the next 12 to 24 months. Regarding valuation, trading at 15x earnings with eaâŚ
Iconic American apparel manufacturer Levi Strauss and Co. (NYSE: LEVI) disappointed investors after lowering their guidance on their fiscal third-quarter of 2024 earnings report. While shares initially sold off 8% on the warning from the declining headline metrics, there were many positives in tâŚ
As 2024 comes to a close, seasonality is a theme that occurs every year entering the holiday season. A look back at some of the familiar headline trends for 2024 includes the AI data center boom, shortage of GLP-1 drugs, fresh demand for nuclear power, restarting the interest rate cut cycle, off-pâŚ
Chinaâs economic planning agency outlined details of measures aimed at boosting the economy on Tuesday but refrained from major spending initiatives. The piecemeal nature of the plans announced Tuesday appeared to disappoint investors who were hoping for bolder moves, and Shanghaiâs benchmark gave uâŚ
Super Micro Computer, Inc. (NASDAQ: SMCI), a significant player in the high-performance computing industry, recently made a strategic move to broaden its investor base. The company implemented a 10-for-1 stock forward stock split, effective from October 1, 2024. This move, which reduced the share âŚ
PepsiCo lowered its organic revenue forecast for the year after U.S. consumers continued to pull back on buying its snacks and drinks.The company, based in Purchase, New York, said Tuesday it now expects its organic revenue â which is adjusted for foreign currency exchanges and the impact of producâŚ
With many western North Carolina residents still lacking power and running water from Hurricane Helene, a hearing began Monday on the insurance industryâs request to raise homeowner premium rates statewide by more than 42% on average. A top lieutenant for Insurance Commissioner Mike Causey opened whâŚ
Costco Wholesale Corporation, together with its subsidiaries, engages in the operation of membership warehouses in the United States, Puerto Rico, Canada, Mexico, Japan, the United Kingdom, Korea, Australia, Taiwan, China, Spain, France, Iceland, New Zealand, and Sweden. The company offers branded and private-label products in a range of merchandise categories. It offers merchandise, such as sundries, dry groceries, candies, coolers, freezers, deli, liquor, and tobacco; appliances, electronics, âŚ
Should I Buy Costco Wholesale Stock? COST Pros and Cons Explained
These insights were generated using artificial intelligence. They are based on proprietary MarketBeat data, news articles, and custom LLM A.I. algorithms. This analysis of Costco Wholesale was last updated on Sunday, October 06, 2024 at 8:59 PM.
Pros
Costcoâs stock has a current price of $875.67, showing stability in the market.
Costco has a strong track record of consistent revenue growth and profitability.
Costcoâs membership model provides a steady stream of recurring revenue.
Costcoâs focus on customer loyalty and satisfaction leads to high retention rates.
Costcoâs expansion plans into new markets offer potential for future growth and market penetration.
Cons
Costcoâs stock price has been relatively high, potentially limiting short-term gains.
Costco faces competition from other retail giants like Walmart and Amazon.
Costcoâs business model heavily relies on membership fees, which could be impacted by economic downturns.
Costcoâs international expansion efforts may face challenges in adapting to different market dynamics.
Costcoâs high valuation metrics, such as P/E ratio and PEG ratio, may indicate overvaluation.
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