Good MorningEquity 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. Featured: Do NOT Buy the Fidelity and Blackrock Bitcoin ETFs - Here's why (DTI) 
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Markets | | | The global artificial intelligence (AI) market is projected to reach $1.8 trillion by 2030, which will signify a transformative shift across industries and create a lucrative opportunity for discerning investors. Not so long ago, AI was just a futuristic concept. Now, it is rapidly becoming an int... Read the Full Story >> |
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Markets | | | After reporting the year's first quarter results, Autodesk Inc. shares (NASDAQ: ADSK) are trading lower by over 3% to end the day. However, the company's financial results are far from those that would warrant such price action, and Wall Street analysts have noticed this fact. Outside of the po... Read the Full Story >> |
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Markets | | | An AI-driven bubble is forming in Oracle’s (NYSE: ORCL) shares, which is only getting bigger. The FQ4 release highlights a supply-demand situation in which demand outpaces supply, and Oracle invests to meet the need. Demand and budding partnerships with major cloud providers such as Microsof... Read the Full Story >> |
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Markets | | | 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 ... Read the Full Story >> |
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Markets | | | Danaos Corp. (NYSE: DAC) is a leader in the global container shipping industry. The company specializes in operating dry bulk and container vessels. Danaos owns and operates its fleet of container vessels but also maintains a smaller fleet of dry bulk vessels to transport bulk commodities like coa... Read the Full Story >> |
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Markets | | | 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... Read the Full Story >> |
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Markets | | | 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... Read the Full Story >> |
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Markets | | | 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... Read the Full Story >> |
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Markets | | | 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... Read the Full Story >> |
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Markets | | | 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... Read the Full Story >> |
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Thursday's Early Bird Stock Of The Day 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... | | View Today's Stock Pick |
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