Good MorningEquity markets gave up more than 1.5% on Tuesday as the fear of inflation, high interest rates, and the FOMC returned to the fore. The FOMC is slated to issue its policy statement today and is not expected to indicate an interest rate hike soon. At best, the FOMC will confirm that inflation is on track to hit target levels but will take longer than expected. This scenario will increase the risk of only one or no interest rate cuts this year, which could lead to a major market meltdown.
With interest rates expected to remain high, economic activity will continue slowing and drain the outlook for earnings growth. Earnings growth is the primary driver of market value; because the S&P 500 is trading well above long-term average price-to-earnings multiples, it could experience a significant earnings-multiple contraction. The risk is that the index will shed four to five handles, cutting 20% to 30% of value out of the market. Featured: Banking Apocalypse Ahead: Secure Your Savings Today! (Weiss Ratings) 
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Stocks | | | Britain's index opened higher Wednesday while Japan and Australian markets fell, with most of the markets closed for a holiday. Meanwhile, stocks in the United States closed out their worst month since September. U.S. shares were set to drift lower as Dow futures lost 0.1% and S&P 500 futures di... Read the Full Story >> |
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Markets | | | Medical device maker Boston Scientific Co.'s (NYSE: BDX) product portfolio encompasses a wide range of therapeutic areas, from cardiovascular, urology, and neuromodulation to endoscopy instruments and rhythm management. The medical sector company is acquiring rhythm modulation device maker Axonics... Read the Full Story >> |
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Markets | | | NXP Semiconductors (NASDAQ: NXPI) is trending higher and on track to hit the $300 level. The company’s diversified business, position in the industrial chip market, and pivot back to growth are why. It will take a little more time for end-market normalization to turn into a business tailwind... Read the Full Story >> |
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Markets | | | Hilton Worldwide Holdings Inc. (NYSE: HLT) is a global hospitality company operating over 7,600 hotels and resorts in 126 countries under more than 20 different brands. The consumer discretionary sector giant runs an asset-light business, owning only 3% of its hotels and franchising the other 97%. H... Read the Full Story >> |
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Markets | | | Starbucks lowered expectations for its full-year sales and profit Tuesday after a disastrous quarter that saw a slowdown in store visits across the world.The Seattle coffee giant said revenue for the January-March period dropped 2% to $8.56 billion. That was far short of Wall Street's forecast of $9... Read the Full Story >> |
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Tech | | | Once known as "Big Blue," computer and technology sector giant International Business Machines Co. (NYSE: IBM) shareholders are now the ones with the blues. Shares of IBM fell 8.25% on a not-so-terrible but not-so-great Q1 2024 earnings report, which saw soft revenues of $14.46 billion and miss... Read the Full Story >> |
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Markets | | | Rapidly climbing sales of the new obesity drug Zepbound and its counterpart for diabetes, Mounjaro, pushed Eli Lilly to a better-than-expected first-quarter profit.The drugmaker also hiked its sales and earnings forecast for 2024 beyond Wall Street's expectations even as it hustles to boost manufact... Read the Full Story >> |
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Markets | | | U.S. consumer confidence deteriorated for the third straight month as Americans continue to fret about their short-term financial futures with prices and interest rates still elevated. The Conference Board, a business research group, said Tuesday that its consumer confidence index fell to 97 in Apri... Read the Full Story >> |
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Markets | | | Europe's economy perked up slightly at the start of the year, recording 0.3% growth in the January-March quarter as the inflation burden on consumers eased and the stagnating German economy, the continent's biggest, started to show modest signs of life Read the Full Story >> |
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Markets | | | Health insurer Humana Inc. (NYSE: HUM) reported its Q1 2024 earnings report to a less dramatic reaction than it got from its Q4 2023 report, causing shares to tumble more than 13%. Investors are still reeling over its vastly lowered EPS guidance stretching out to 2025. The so-called guidance provide... Read the Full Story >> |
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Wednesday's Early Bird Stock Of The Day Baker Hughes Company provides a portfolio of technologies and services to energy and industrial value chain worldwide. The company operates through Oilfield Services & Equipment (OFSE) and Industrial & Energy Technology (IET) segments. The OFSE segment designs and manufactures products and provides related services, including exploration, appraisal, development, production, rejuvenation, and decommissioning for onshore and offshore oilfield operations. This segment also provides drilling... | | View Today's Stock Pick |
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