🦉 Decker's Stock Surges Like NVIDIA Through $1,000 on Robust Growth
While artificial intelligence (AI) chip maker NVIDIA Co. (NASDAQ: NVDA) garnered the spotlight on its stock surge through $1,000, a retailer that gapped through the $1,000 barrier received less fanfare. The price action appears similar, but these companies are in completely different sectors: computer and technology and consumer discretionary. Outdoor lifestyle apparel and footwear maker Deckers Outdoor Co. (NYSE: DECK) shares shot through $1,000 and all-time highs under the radar when it released its fiscal Q4 2024 earnings results. However, the company issued slightly lower guidance than consensus estimates, but shares continued to roar higher. Deckers competes with outdoor apparel retailers, including Canadian Goose Holdings Inc. .
Equity markets pulled back for the third day on Thursday as traders braced for today's PCE inflation report. The PCE price index is the Fed's favored gauge of consumer inflation and is expected to be hot. The consensus estimates have the figure pulling back slightly compared to last month but still running well above the target 2.0% rate. The data should align with the idea that the FOMC will cut rates but not that it will soon. Investors should expect the Fed to keep policy as-is until late this year, if not into 2025.
The question is, what will the market do? The market has been rallying on economic resilience and S&P 500 earnings growth and may continue higher regardless of the data. In this scenario, the causes of high inflation and high interest rates will persist and could lead to stagflation. However, a firm indication that no rates are coming soon could cause the market to reset the outlook for this year and next year's earnings growth and reset the S&P 500 valuation along with it. Results from names like Salesforce, which included slowing growth and tepid guidance, helped set the market up for a large contraction.
While artificial intelligence (AI) chip maker NVIDIA Co. (NASDAQ: NVDA) garnered the spotlight on its stock surge through $1,000, a retailer that gapped through the $1,000 barrier received less fanfare. The price action appears similar, but these companies are in completely different sectors: computer and technology and consumer discretionary. Outdoor lifestyle apparel and footwear maker Deckers Outdoor Co. (NYSE: DECK) shares shot through $1,000 and all-time highs under the radar when it released its fiscal Q4 2024 earnings results. However, the company issued slightly lower guidance than consensus estimates, but shares continued to roar higher. Deckers competes with outdoor apparel retailers, including Canadian Goose Holdings Inc.
The U.S. economy grew at a sluggish 1.3% annual pace from January through March, the weakest quarterly rate since the spring of 2022, the government said Thursday in a downgrade from its previous estimate. Consumer spending rose but at a slower pace than previously thought, a sign that high interest rates and lingering inflation are pressuring household budgets. The Commerce Department had previously estimated that the nation's gross domestic product — the total output of goods and services — expanded at a 1.6% rate last quarter. The first quarter's GDP growth marked a sharp slowdown from the ...
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