There is a lot happening on Wall Street, as well as behind the scenes, this week.
First and foremost, last Friday, news broke that Israel conducted a round of airstrikes against Iran. Stocks fell the most in nearly a month, as the prospect of a broader conflict and an oil supply shock sent crude prices to their biggest one-day gain in years.
Over the weekend, back-and-forth strikes between the two countries intensified. But stocks have shaken off those concerns, as reports on Monday indicated that Iran may be willing to restart nuclear negotiations with the U.S. But without a full surrender from Iran and agreement to disband their nuclear facilities, I don’t see anything happening.
Meanwhile, some missiles are breaching Israel’s Iron Dome defenses, raising concerns that the U.S. may soon need to intervene directly.
President Trump, for his part, left the G7 meeting early to monitor the situation between Israel and Iran as the conflict escalated further yesterday. Both Israel and Trump warned everybody in Tehran to leave. That’s a metro area of 16.8 million people, and Tehran itself has about 9.8 million people. So, I’m sure that’s causing panic.
Now, the U.S. is obviously supporting Israel. We diverted the U.S. aircraft carrier Nimitz to the region. We also moved at least 24 air tanker refueling planes to the region to help Israel refuel.
But there are a lot of people pushing for the U.S. to use its B-2 bombers to hit the hardened facility that houses much of Iran’s uranium enrichment.
So, we’ll see if we get involved or not.
Big Economic News on Deck
Now, this week is shortened due to the Juneteenth holiday. The markets, as well as the InvestorPlace offices and customer service department, will be closed on Thursday for the holiday. But even though it isn’t a full week, it will be jam-packed…
Elon Musk kicked things off with a social media post stating that Tesla Inc. (TSLA) could roll out its long-awaited robotaxi service in Austin, Texas as early as this Sunday, June 22. However, Musk wrote, “We are being super paranoid about safety, so the date could shift.”
This morning, the latest U.S. retail sales report showed a 0.9% decline in May. June’s retail sales were revised down from a 0.1% increase to a 0.1% decline.
So, retail sales have now declined for two months in a row. That’s the first time since late 2023. Fully seven of the 13 categories the Commerce Department surveyed declined in May. Here are some of the big declines:
Building materials and garden store sales plunged 2.7%.
Gas station sales fell 2%, and that’s mostly due to lower fuel prices.
Vehicle sales declined by a whopping 3.5%.
Also, concerning me, sales at bars and restaurants declined 0.9%. So, consumers were out and about less, and the previous month they had risen 1.2%.
The only silver lining in this retail sales report is that when we exclude building materials, gasoline, and vehicle sales, core retail sales rose 0.4%.
Regardless, the poor report caused Treasury yields to fall, and that puts more pressure on the Federal Reserve to cut key interest rates.
Most importantly, the Federal Open Market Committee (FOMC) will be meeting this week, starting on Tuesday. And while Wall Street is not expecting a cut at this meeting, it will be closely watching the “dot plot,” as well as the official statement, for any clues about future rate cuts. (I’ll dive into the details of all of this in Market360 later this week.)
Forget about AI… There’s a hot new trend on Wall Street… and it’s all thanks to President Trump. His administration has begun to fast-track the operations of a handful of companies… Accelerating their potential profits. That’s why legendary investor Louis Navellier is now recommending these three stocks that are being fast-tracked.
This Week’s Ratings Changes
Bottom line: The situation between Israel and Iran is a wildcard that bears watching, but it is not a reason to sell your stocks right now. And investors are hoping the Fed will give us some positive news by hinting at future rate cuts.
The reality is inflation has come in much better than expected for four straight months. Retail sales are weaker than expected. Yet, as I’ve written about previously, the Fed is worried about an inflation bogeyman that has not materialized.
So, I think the Fed needs to start following the data and quit imagining things. The market needs a dovish statement to keep this rally going. Otherwise, it could create some selling pressure.
With that in mind, I took a fresh look at the latest institutional buying pressure and each company’s financial health and decided to revise my Stock Grader (subscription required) recommendations for 132 big blue chips (subscription required.) Of these 132 stocks…
Seventeen stocks were upgraded from a Buy (B-rating) to a Strong Buy (A-rating).
Thirty-three stocks were upgraded from a Hold (C-rating) to a Buy (B-rating).
Fifteen stocks were upgraded from a Sell (D-rating) to a Hold.
Four stocks were upgraded from a Strong Sell (F-rating) to a Sell.
Twelve stocks were downgraded from a Strong Buy to a Buy.
Twenty-three stocks were downgraded from a Buy to a Hold.
Twenty-five stocks were downgraded from a Hold to a Sell.
And three stocks were downgraded from a Sell to a Strong Sell.
Now, my Stock Grader system continues to identify great individual opportunities every week – just like the upgrades I shared with you today.
But beyond these stock-by-stock ratings, there’s a much larger shift quietly unfolding that you need to know about.
Earlier this year, President Trump signed Executive Order 14196. With that order, his administration set in motion a plan to fast-track a small group of companies tied to America’s national interest.
What does this mean?
We’re talking about companies that may receive special “emergency status” designations, regulatory fast-tracking, and even direct federal capital to speed up their growth.
I don’t think I need to tell you how big a deal this is – and how much of an opportunity it could be for investors who get in on this shift before it makes the headlines.
After months of research, I’ve zeroed in on three companies I believe are best positioned to benefit from this historic shift.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
