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by Steven Magallanes
Thursday, June 27, 2024
π¦ 3 Reasons Amazon Stock Is a Prime Buying Opportunity
A 4% pop yesterday put Amazon.com Inc (NASDAQ: AMZN) shares at a new record high and on the verge of a major milestone. After closing at $193.61, they're just a 3% move away from hitting $200 for the first time ever. It also means that they're now up more than 30% since the start of the year and over 130% since the beginning of last year, which is when this current rally really started. A combination of cooling inflation, rising hopes for interest rate cuts, and the explosion of artificial intelligence (AI) in recent months have made prime conditions for Amazon stock. Less inflation means the tech titan's e-commerce consumers have more disposable income to spend, while the possibility of a fall in rates means their tech customers are increasing their cloud computing budgets. .
Equity markets continued to hover near all-time highs on Thursday as market participants held their breath in anticipation of Friday's PCE price index. All hopes are hung on the PCE price index because it is the key to unlocking FOMC policy. The index needs to trend lower, closer to the 2% target, for the committee to cut interest rates and has been sluggish in its movement. The S&P can continue to climb higher so long as the PCE index falls, but there is a fatigue risk. The longer it takes for the Fed to cut rates, the greater the risk of a deep market correction and the deeper the correction could be.
The market will get some reprieve next week. The Fourth of July Holiday is on Wednesday, the market is closed, and there are few earnings reports and economic data on the calendar. The next hurdle for the market will come the following week when the Q2 earnings reporting season begins. The first critical report will be from JPMorgan Chase & Co., which is expected to show steady top-line growth but with a narrower margin.
A 4% pop yesterday put Amazon.com Inc (NASDAQ: AMZN) shares at a new record high and on the verge of a major milestone. After closing at $193.61, they're just a 3% move away from hitting $200 for the first time ever. It also means that they're now up more than 30% since the start of the year and over 130% since the beginning of last year, which is when this current rally really started. A combination of cooling inflation, rising hopes for interest rate cuts, and the explosion of artificial intelligence (AI) in recent months have made prime conditions for Amazon stock. Less inflation means the tech titan's e-commerce consumers have more disposable income to spend, while the possibility of a fall in rates means their tech customers are increasing their cloud computing budgets.
Did you know 77% of American investors regret not investing earlier? Are you one of them? There is one company that could make early investors quite happy. Even Microsoft is taking notice...
Walgreens is finalizing a plan to fix its U.S. business that could result in closing hundreds of additional stores over the next three years.CEO Tim Wentworth told analysts Thursday morning that "changes are imminent" for about 25% of the company's stores, which he said were underperforming. The drugstore chain currently runs more than 8,600 in the United States. Wentworth said the company's plan could include the closing of a "significant portion" of those roughly 2,100 underperforming stores if they don't improve.Company leaders said they've already closed 2,000 locations over the last 10 years.
The U.S. consumer is going through one of the most significant constraints in the economy of all its fast food with the growing burning hole at the bottom of their pockets. With fast food being higher than the Federal Reserve’s (the Fed) goal of 2%, employees at work won’t do it anymore to keep the same standard of living most people had just a year ago. That is why companies like Target Co. (NYSE: TGT) and even Walmart Inc. (NYSE: WMT) agreed – for the nation's sake – to lower prices on over 1,500 items recently. While this act could have been taken as a negative from the stock market since it will inevitably affect profits, Walmart has had a 30.4% run in the past six months.
Central banks are buying gold at record rates... and billionaire investors are buying right along with them. Even Warren Buffett put over $500 million into gold. And with the help of a tax and penalty-free "Trump Loophole, " these investors are investing retirement into gold and other precious metals without having to put up any of their own cash. In our Free Retirement Protection Kit, we reveal all the details on how the rich use this loophole to protect and growth their retirement wealth in any economy…and show you how you can use it too.
The Czech Republic's central bank on Thursday cut its key interest rate for the fifth time in a row as inflation remains low and the economy is showing signs of recovery.The cut, which had been predicted by analysts, brought the interest rate down by a half-percentage point, to 4.75%. The bank started to trim borrowing costs by a quarter-point on Dec. 21, the first cut since June 22, 2022. Further cuts of half a percentage point each time followed on Feb. 8, March 20 and May 2. Inflation declined to 10.7% in 2023 from 15.1% in 2022, according to the Czech Statistics Office, and dropped to the ...
Occasionally, Wall Street fund managers come down from their ivory towers and let the rest of Main Street into some of the plays they have been making. These institutions manage the nation’s pensions and other crucial investment vehicles, so when their insights are released, it pays to keep up with them, or at least behind their reasonings. Today, Morningstar released a list of ten stocks fund managers have been buying lately. However, some of them are just out of momentum and exposure to the technology sector, which has been getting all the attention thanks to NVIDIA Co. (NASDAQ: NVDA) and its splash in artificial intelligence.
The American economy expanded at a 1.4% annual pace from January through March, the slowest quarterly growth since spring 2022, the government said Thursday in a slight upgrade from its previous estimate. Consumer spending grew at just a 1.5% rate, down from an initial estimate of 2%, in a sign that high interest rates may be taking a toll on the economy.The Commerce Department had previously estimated that the gross domestic product — the economy's total output of goods and services — advanced at a 1.3% rate last quarter.The first quarter's GDP growth marked a sharp pullback from a strong 3.4% pace during the final three months of 2023.
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