Are YOU Ready for An Inflation Jump?
With a new-look newsletter, we're prepping for core inflation readings, offering you a deluge of weekly investing signals and examining why Korean cosmetics could be the next big thing!
The State of Play
S&P 500 4,457.49 -1.61%
NASDAQ100 15,280.23 -2.06%
DJIA 34,576.59 -0.86%
US 10 Yr Bond Yield 4.26 -0.04%
US 2 Yr Bond Yield 4.98 +0.11%
Welcome to a new look for the Investing Intel newsletter, where we’re hitting you with a lean and data-driven approach! This week, we’re talking inflation as we look ahead to Wednesday’s US Core Inflation figures.
Let’s kick things off with a nice graph, shall we?
As you can see from the graph above, US inflation has declined significantly from the slightly terrifying highs we saw last year. But would it be complacent to expect a continuation of the downward trend?
It’s first important to note that core inflation edged higher in July. Additionally, alternative measures like the PCE Price Index Annual Change showed an uptick too.
What’s more, US consumer sentiment dipped slightly in August, though remains relatively strong compared with recent months. This dip came as one-year inflation expectations rose to 3.5% in August from 3.4% in July, indicating a mood of caution despite the recent declines in inflation.
US Producer Prices were significantly higher in their most recent reading too, rising after two consecutive months of declines. Maybe we should expect this increase in wholesale inflation to continue to be passed on to consumers in this week’s reading.
To cap it all off, the price of Brent crude rose above $90 a barrel on Tuesday for the first time since November. As such, inflation could well nudge higher this week. In turn, this will steer the Fed’s upcoming interest rate decision, having a huge effect on the US economy and stock market.
Investing Signals
Here, we’re taking you through some of the key data from last week. All share price data is from the market close on 09/09/23, while price changes show weekly movement.
Top 5 Gainers
Top 5 Losers
Crypto Round-Up
Trending Stocks
Anheuser-Busch Inbev SA
BUD 0.00%↑
Share Price: $56.37
Weekly Change: -1.21%
Google Search Interest: +120%
Alcoholic beverage giant Anheuser-Busch is top of the trending pile this week. The business is generating chatter thanks to, of all people, Bill Gates. The software billionaire’s foundation trust purchased $95m of Anheuser-Busch stock, signalling that he sees worth in a business that has been heavily impacted by the controversy surrounding its association with transgender influencer Dylan Mulvaney.
ChargePoint Holdings Inc
CHPT 0.00%↑
Share Price: $5.71
Weekly Change: -20.89%
Google Search Interest: +120%
Next up is ChargePoint, an American EV charging station outfit. The business had a rough week as its second-quarter earnings outlined plans to cut 10% of its workforce, while revenue and EPS missed expectations. Investors are less than impressed.
Canopy Growth Corp
CGC 0.00%↑
Share Price: $0.92
Weekly Change: +49.02%
Google Search Interest: +110%
Finally, some good news! This marijuana stock has rocketed over the last week as Washington lawmakers’ efforts to decriminalize the drug have excited investors. However, potential backers should note that several insiders sold sizeable chunks of their stock in recent days.
Novavax Inc
NVAX 0.00%↑
Share Price: $9.05
Weekly Change: +11.85%
Google Search Interest: +90%
This vaccine specialist enjoyed a share price boost amid news that it will shortly release new vaccines that target COVID-19 variants. Nobody wants to think about the coronavirus of course, but new variants are reportedly spreading significantly in the US and Canada. That’s why Novavax’s new treatment could be a real shot in the arm for the company.
Enbridge Inc
ENB 0.00%↑
Share Price: $33.57
Weekly Change: -5.25%
Google Search Interest: +80%
This pipeline and energy infrastructure specialist took a hit this week as investors appeared to be less than excited by its $14bn move for gas utilities owned by Dominion Energy. The stock has dipped significantly this year, but a strong dividend yield and some potential in this mooted deal could make it worth a look.
Alternate Signals
Rice Toner 🍚 🧴
When we discovered the extent that ‘rice toner’ was trending, we only had one question: What on earth is rice toner? The short answer is that it’s a skincare cosmetic that supposedly rids the user of impurities and excess oils. As the name suggests, one of the key ingredients is rice extract.
Why is rice toner getting us so excited? The last six months have seen the topic more than double in interest for online searchers.
This is particularly interesting when paired with the revelation that terms like ‘Rice Water Shampoo’, ‘Rice Shampoo’ and ‘Rice Water Shampoo Bar’ have enjoyed enormous uplifts in search interest in the same period. Interest in the latter term has leapt by over 4000%!
Fervor like this surely indicates some sort of opportunity.
It all points to a major increase in interest in Korean skincare products. In fact, US Google search interest in ‘Korean Skincare’ has more than doubled over the last 12 months.
The two largest players in the Korean cosmetics market are AmorePacific Group (KRX: 090430) and LG Household and Healthcare (KRX: 051900). These companies are starting to shout about significant growth in Western markets too. AmorePacific’s most recent earnings update boasted that North American revenues doubled during the period, while European sales were up too as the company entered new markets.
This diversification is essential, as Korean brands are currently overly reliant on China, where economic difficulties and troubled international relations are currently impacting business. This has depressed the share price of many Korean cosmetics companies, even as their Western pushes appear to be gaining traction.
In short, Korean cosmetic brands are a hot topic among Western consumers, but some industry stock prices have significantly decreased this year. This could make it the perfect time for investors to get on board!
Key Korean stocks are below:
AmorePacific Group (KRX: 090430)
LG Household and Healthcare (KRX: 051900)
Clio Cosmetics (KRX: 237880)
Cosmax Inc (KRX: 192820)
Kolmar Korea Co Ltd (KRX: 161890)
r/WallStreetBets
Which stocks are generating interest in the world’s most influential online investment community? The week’s hottest stocks are below:
Tesla TSLA 0.00%↑ - Debate on the forum is raging as to whether the EV-maker’s so-called “cybertrucks” will be a hit with consumers… judge for yourself from the picture below.
AMC Entertainment Holdings AMC 0.00%↑ - This popular meme stock has hit an all-time low, leading some on the forum to lament its fortunes or take the opportunity to buy the dip.
Apple Inc AAPL 0.00%↑ - The tech giant is a key topic of discussion for forum members dissecting the news that Chinese authorities have banned employees from using some of the company’s products.
Nvidia NVDA 0.00%↑ - The chipmaker is generating some serious chatter as users debate whether the stock is overhyped. One popular post claims NVDA is the wrong bet with regard to AI, arguing that its current monopoly is not sustainable.
Top Reads
🇺🇸 Is this year’s US stock market rally too good to be true? Is it all going to end in tears? Check out this analysis from Bloomberg’s Jess Menton and Carly Wanna.
😞 In more troubling news, US consumers could be tightening their purse strings. Find out more from Reade Pickert and Vildana Hajric of Bloomberg.
💻 UK semiconductor company Arm Holdings PLC is expected to debut on the NASDAQ this week and there looks like a lot to be excited about. Find out why the Financial Times’ Bryce Elder disagrees.
🇩🇰 What is Novo Nordisk’s Wegovy and why is it so important to the Danish Economy? The Guardian’s Julia Kollewe tells us more.
🍏 Apple’s recent difficulties with Chinese authorities highlight the difficulties of doing business there. Alexandra Stevenson of the New York Times spells out why US companies keep coming back.