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- 🏹 Surviving Inflation
🏹 Surviving Inflation
Plus, China's plan to save its property market
Happy Wednesday 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.
🟩 | US Stocks Surged on Wednesday following a lighter-than-expected US consumer inflation report. The S&P 500 and Nasdaq Composite both hit record highs, while the Dow rose 350 points.
📈 | One Notable Gainer: Dell’s stock popped 11% after Morgan Stanley predicted the company is set to rake in sales from the insatiable demand for AI servers.
📉 | One Notable Decliner: The meme stock rally loses momentum- Shares of GameStop and AMC Entertainment dropped 19% and 20%, respectively, showing that investor appetite for meme stocks is already waning.
🏹 | Tomorrow's Trade: Surviving Inflation. Scroll down for more.
Plus, how our partner led the evolution of influencer marketing.
YESTERDAY’S POLL RESULTS
🟩🟩🟩🟩🟩🟩 Bullish
🟨🟨🟨⬜️⬜️⬜️ Bearish
S&P 500 Heatmap. Credit: Finviz
All Stock Heatmap. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
BA (-2%) The DOJ notified Boeing that it breached terms of its 2021 agreement in which the company avoided criminal charges for two fatal 737 crashes (CNN)
TSLA (-2%) Tesla’s Chinese rival Nio launched a new car brand that undercuts the Model Y by $4,000 (CNBC)
MNDY (+21%) Cloud-based project management company Monday.com reported a profit of 61 cents a share, a 335% increase from a year earlier (IBD)
NYCB (-6%) New York Community Bancorp agreed to sell $5 billion in mortgage warehouse loans to JPMorgan Chase to bolster its liquidity (CNBC)
WOOF (+28%) Petco named Glenn Murphy, a former executive from companies like Gap and Lululemon, as executive chairman of the board of directors (MW)
TOGETHER WITH IZEA
Influencer marketing has transformed from a niche tactic to a multi-billion-dollar industry shaping consumer behavior globally. IZEA Worldwide Inc.'s journey, led by Founder and CEO Ted Murphy, illustrates this evolution.
From pioneering the BlogStar Network to launching the first influencer marketing platform, PayPerPost, in 2006, Murphy's vision has been instrumental. Today, influencer marketing is thriving, with costs skyrocketing and AI poised to revolutionize the field. As Murphy highlighted, embracing technology is key. Learn more about how IZEA helped shape the industry here.
OVERHEARD ON THE STREET
CNN: New data from the Fed shows that delinquency rates increased during the first quarter to 3.2%, the highest since the fourth quarter of 2020.
CNBC: The CPI report showed that inflation eased slightly in April, increasing by 0.3% compared to the Dow Jones estimate of 0.4%.
Bloomberg: Netflix will air two National Football League games this Christmas Day in the streaming giant’s latest push into live events.
NYT: Ilya Sutskever, OpenAI’s chief scientist and co-founder, is leaving the company, raising questions about OpenAI’s ability to continue leading the industry.
Reuters: Entrepreneur Frank McCourt said his organization, Project Liberty, is forming a consortium to buy social media platform TikTok in the United States.
TOMORROW’S TRADE IDEA, TODAY
Finally Feeling the Pinch
The story of resilient consumers is coming to a close as many companies report that spending is being hampered by inflation.
In response, Goldman Sachs (GS) has compiled a list of stocks it expects to continue to perform well in a penny-pinching environment.
According to analyst Bonnie Herzog, companies catering to low-income customers could be in for a rough time. However, companies known for their low prices could do well.
Walmart and Coca-Cola
Walmart (WMT) reports Q1 earnings on Thursday, and Herzog is bullish on the stock. She likes the company’s optimism toward consumer health and its “steady” condition. According to an LSEG poll, the average analyst expects the stock to rise by around 8%.
Coca-Cola (KO) beat predictions for first-quarter earnings despite acknowledging that customers were becoming slightly more value-oriented. Herzog doesn’t believe this trend will largely affect the company.
Shares are up just over 5% year-to-date, lagging behind the overall market. The LSEG poll showed that the average analyst gives the stock a 6% upside.
Colgate-Palmolive
Herzog also believes Colgate-Palmolive (CL) could manage to avoid revenue issues. According to its CEO, the company’s volume growth is making a comeback.
The company exceeded analysts’ expectations in both earnings per share and revenue. Shares are up more than 16% this year. The average analyst gives the stock a “buy” rating and a price target that suggests it could rise another 2%, according to LSEG.
As stubborn inflation takes its toll on consumer spending, these companies could be well-positioned to avoid the fallout.
Which stock do you think will outperform over the next 12 months? |
TOGETHER WITH IZEA
Influencer marketing has transformed from a niche tactic to a multi-billion-dollar industry shaping consumer behavior globally. IZEA Worldwide Inc.'s journey, led by Founder and CEO Ted Murphy, illustrates this evolution.
From pioneering the BlogStar Network to launching the first influencer marketing platform, PayPerPost, in 2006, Murphy's vision has been instrumental. Today, influencer marketing is thriving, with costs skyrocketing and AI poised to revolutionize the field. As Murphy highlighted, embracing technology is key. Learn more about how IZEA helped shape the industry here.
ON OUR RADAR
CNN: The federal student loan interest rate for undergraduate students is set to increase to 6.53%, the highest level in 12 years.
AP: A bipartisan group of senators is recommending that Congress spend at least $32 billion to develop artificial intelligence and place safeguards around it.
MW: Mortgage rates fell for the second week in a row to the lowest level since early April, prompting an increase in refinancing activity.
YF: The US consumer showed signs of slowing in April as retail sales were flat for the month, adding to concerns about sticky inflation and high interest rates.
Bloomberg: The Chinese government is considering a proposal to have local governments buy millions of unsold homes to save the nation’s property market.
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