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đ A Chinese Comeback
Plus, these billionaires recently sold $11 billion in stock
Happy Thursday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.
đ„ | US stocks fell on Thursday. Hotter-than-expected US inflation data sent Treasury yields higher, resulting in a less than 1% loss in both the Nasdaq Composite and S&P 500. The Dow also pulled back 138 Points.
đ | One Notable Gainer: Trading platform Robinhood popped 5% after reporting that its assets under custody grew 16% month-over-month to $118.7 billion at the end of February.
đ | One Notable Decliner: Shares of Lennar sunk 8% after the homebuilder posted a revenue miss, bringing in $7.31B compared to the expected $7.39 billion.
đ | Tomorrow's Trade: A Chinese Comeback. Scroll down for more.
Plus, todayâs partner highlighted why trust deeds belong in your real estate portfolio.
S&P 500 Heatmap. Credit: Finviz
All stocks on US exchanges. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
NVDA (-3%) Nvidiaâs stock stumbled as the chip maker looks to be in a pattern of volatile trading ahead of its developersâ event (Barronâs)
JPM (-2%) JPMorganâs stock slipped after the Fed announced the bank was fined almost $350 million for inadequate trade reporting (Reuters)
UAA (-11%) Under Armour shares tumbled after announcing founder Kevin Plank is returning to the CEO role, a sign UAAâs current strategy is not working (Investopedia)
WW (-20%) Shares of Weight Watchers parent company dove after a report that the company hired lawyers to prepare for debt talks (MW)
FSR (-52%) Electric vehicle company Fisker saw its stock plunge following news that the company is allegedly exploring bankruptcy (CNN)
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For a long time, real estate investing has been perceived as an exclusive domain reserved for the wealthy. However, this is no longer the case as accessibility to real estate investment opportunities has increased over time. Trust deeds are one of the ways real estate has been more accessible for both investors and borrowers.
Ignite Funding has facilitated over a billion dollars in real estate loans and has become a trusted platform in the western United States, offering individualized investment opportunities and challenging the misconception that real estate investment is only for the ultra-wealthy.
OVERHEARD ON THE STREET
WSJ: The producer price index rose 0.6% in February, while economists polled by Dow Jones expected an increase of just 0.3%.
Reuters: Major African cocoa plants have stopped or cut processing because they canât afford to buy beans as cocoa prices have doubled over the last year.
Fox Business: FCMâs chief global strategist, Jay Woods, believes a TikTok ban could have major ramifications for tech stocks with Chinese exposure, like Apple and Tesla.
WSJ: Plus, former Treasury Secretary Steven Mnuchin is putting together an investment group to try to buy TikTok and divorce the platform from its Chinese owners.
Bloomberg: Apple acquired Canadian artificial intelligence startup Dawin AI, adding technology to its arsenal ahead of its generative AI push for 2024.
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TOMORROWâS TRADE IDEA, TODAY
Bringing Investors Back
The past year hasnât been kind to Chinese stocks. The economy has been dragged down by an exodus of foreign capital and a declining real estate market.
But there might be signs of a turnaround on the horizon. The country has been pumping the economy full of stimulus, and February saw consumer prices rise only 0.7% year-over-year. Factory activity expanded for the third straight month in January.
According to Kamil Dimmich of North of South Capital, investors should start looking at China again.
Amer Sports
The Shanghai Composite Index (SHCOMP), which saw a 5-year low at the start of February, is up more than 4% in the past month and 2.75% this year.
China Market Research Groupâs Shaun Rein is bullish on health and wellness stocks like Amer Sports (AS). The Finnish retailer owns brands such as Salomon and Arcâteryx, both popular footwear names in China.
Amer Sports stock is up over 21% this year and over 9% in the last month alone.
Xinyi Glass & Fufeng
Dimmich is bullish on two lesser-known stocks, Xinyi Glass (XYIGY) and Fufeng (0546).
Xinyi Glass manufactures glass products for both construction companies and car manufacturers like Ford (F) and General Motors (GM). Shares are down almost 32% over the past 12 months but are beginning to trend higher, up around 39% over the past month.
Fufeng produces flavor enhancers, fertilizers, and starch. Over the past 12 months, its share price is basically flat. But, like Xinyi, itâs been trending up lately. The stock is up around 13% over the past month.
The tides may be starting to turn in China. Analysts believe the country is starting to emerge from its downturn and think these stocks could offer investors considerable value in the long term.
Which stock do you think will outperform over the next 12 months? |
POWERED BY IGNITE FUNDING
For a long time, real estate investing has been perceived as an exclusive domain reserved for the wealthy. However, this is no longer the case as accessibility to real estate investment opportunities has increased over time. Trust deeds are one of the ways real estate has been more accessible for both investors and borrowers.
Ignite Funding has facilitated over a billion dollars in real estate loans and has become a trusted platform in the western United States, offering individualized investment opportunities and challenging the misconception that real estate investment is only for the ultra-wealthy.
ON OUR RADAR
BW: The 2024 US Household Bill Pay Report found that the cost of living has grown 4% YoY, with consumers spending $26K annually on essential bills.
BI: According to JPMorgan, the soaring price of bitcoin could delay the Federal Reserve's plans to cut interest rates.
Reuters: Deutsche Bank CEO expects the current crisis in commercial real estate to continue in 2024 and that loan loss provisions will be at the upper end of the projected range.
BI: The Biden administration wants to quadruple the stock buyback tax to 4%, with an estimated $1 trillion in stock buybacks scheduled for 2025.
DailyMail: In recent months, Jeff Bezos, Leon Black, Mark Zuckerberg, Jamie Dimon, and Walmart's Walton family have sold a staggering $11 billion in stock.
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