Stock Market 💥 Shocks, Bubbles and Bonds! Uncover the Latest Financial Drama! 🎭
Inside Investing Intel this week we delve into the latest investment trends, covering stock market moves, regulatory developments, Bitcoin, IPO activity, central bank strategies, and more.
Market Snapshot (Past Week)
S&P500: $5,234.18 (+1.54%)
Dow Jones Industrial Average: $39,475.90 (+1.67%)
Nasdaq Composite: $16,428.82 (+1.70%)
Russell 2000: $2,072.00 (+1.46%)
S&P/TSX Composite Index: $21,984.08 (+0.50%)
PHLX Gold and Silver Sector: $119.21 (-0.39%)
The Biggest Investing Stories From the Last 7 Days
Dive into our rundown of the top investing stories from the Chocolate Crisis to a Gucci shock, LULU disappointment, vape crackdown and Big Tech’s surprise collab.
🍫 Chocolate Crisis
Shortages of cocoa and soaring prices impact chocolate manufacturers, raising concerns for retail investors in consumer goods sector.
Assessing the value for investors —>
🤸♂️ LULU Underwhelms
Lululemon's LULU 0.00%↑ strong Q4 performance outshined by weak guidance for FY25. Insights into evolving consumer behavior and market competition crucial for LULU stock investors.
Why investors should pay attention —>
🚀 Micron Surges
Micron's MU 0.00%↑ robust revenue forecast, driven by AI hardware demand, presents retail investors with a promising opportunity in the semiconductor industry.
Why this is important for investors —>
👗 Gucci Disappoints
Kering shares plunge as Gucci sales fall 20%. Concerns rise for retail investors amid changing trends and intense competition in luxury market.
Assessing the value for investors —>
💰 JPMorgan Boosts Dividend
JPMorgan JPM 0.00%↑ increases dividend by 9.5%, signals strong performance amid regulatory changes.
Why investors should pay attention —>
😮💨 Vape Crackdown
Altria MO 0.00%↑ supports US states cracking down on disposable fruit-flavored vapes, posing potential investment implications for retail investors.
Why this matters to investors —>
🤑 MicroStrategy Owns 1% of All Bitcoin
MicroStrategy MSTR 0.00%↑ has amassed over 1% of all Bitcoin that will ever be issued. Now, the company has a total holding of 214,246 tokens, valued at around $14 billion.
Why this is important for investors —>
👨💻 Apple & Google Unite
Apple AAPL 0.00%↑ and Google GOOGL 0.00%↑ are discussing AI integration into iPhones, potentially revolutionizing the retail investor experience with advanced features and tools.
Why this is important for investors —>
PRESENTED BY QYOU MEDIA
India's Youth Surge Fuels Digital Explosion
QYOU Media Inc. (TSXV: QYOU) (OTC: QYOUF) is an India-focused entertainment business that combines social media stars with a wide-reaching network of television channels. QYOU’s experienced and connected leadership team anticipates significant opportunities in India's future and is determined to seize them. If you’re looking for investing ideas in the media and entertainment industry this is one stock you want on your radar.
Explore this Growth Opportunity Now —>
Hot Topics
In the coming week, investors tread cautiously as they await a U.S. inflation data release on Good Friday, following dovish remarks by Fed Chair Jerome Powell last week. Economic indicators, including new home sales and GDP revisions, are also on the radar. Fed officials, including Powell, are expected to speak, possibly with a hawkish tone. Equities saw a notable rise last week, prompting discussions on potential market corrections. Oil prices remained steady amid geopolitical tensions. Global inflation figures from Australia and Japan are awaited, particularly following the Bank of Japan's recent interest rate hike.
Hot Stocks: Goldman Sachs reaffirms its S&P 500 year-end forecast of 5,200, considering fully priced rates and growth. It explores scenarios, including one where tech giants drive the index to 6,000. Despite a 10% rise this year, concerns persist over rates and market quality. A shift in rate outlook is seen as crucial for a broader market rally. Goldman provides additional scenarios, including a 'catch-up' to pre-pandemic valuations at 5,800, and bearish scenarios where the index could fall to 4,500.
Insider Selling: Tech giants like Peter Thiel, Jeff Bezos, and Mark Zuckerberg are selling millions in company shares, indicating a potential peak in the stock market frenzy. Insider selling has surged to record levels amid the tech bull run fueled by AI excitement. While some attribute the sales in Palantir PLTR 0.00%↑, Amazon AMZN 0.00%↑, and Meta META 0.00%↑ to normal early-year trends, experts warn of underlying concerns about market sustainability. The rush for liquidity and strategic asset deployment paints a cautionary tale for investors navigating the volatile tech sector.
IPO Revival: Last week marked a potential revival in IPO activity, with strong debuts from Reddit Inc. RDDT 0.00%↑, Astera Labs Inc. ALAB 0.00%↑, and Galderma Group AG $GALD. Despite initial success, sustaining momentum hinges on balanced performance and favorable valuations. Analysts caution against drawing premature conclusions, emphasizing the need for sustainable growth beyond the IPO stage.
Government Shutdown: The US Congress approved a Continuing Resolution (CR) funding measure to avert a government shutdown, extending funding until December 3. The Senate voted 65-35, and the House 254-175, though Congress often delays action until the last minute. The Pentagon, while preferring some funding over none, faces limitations under a CR, with new programs halted. Defense planners adjust by delaying contracts to mitigate operational impacts.
Big Tech Antitrust: Big Tech is under intense scrutiny as regulators in the US and Europe consider potential break-up orders for Apple AAPL 0.00%↑ and Google GOOGL 0.00%↑ due to alleged anti-competitive practices. Regulators argue that these companies have created impenetrable ecosystems, hindering competition. In the US, the Department of Justice warned Apple of a possible break-up, while in Europe, investigations into potential violations of the Digital Markets Act are underway. EU antitrust chief Margrethe Vestager has suggested divestment as a solution to prevent conflicts of interest in Google's adtech business.
Moscow Attack: The deadly attack on Moscow's Crocus City concert hall, claimed by the Islamic State (IS), has left 137 people dead. Four suspects, identified as citizens of Tajikistan, have pleaded guilty to involvement in the attack. Experts cite various reasons for IS targeting Russia, including historical conflicts and Russia's support for regimes opposed by IS. Russia's response, which includes brutal interrogation methods and potential repressive measures against Muslim minorities, is expected to escalate tensions.
Rate Expectations: Bond traders are cautiously betting on interest rate reductions as central banks, including the Federal Reserve, signal potential easing starting from June. Shorter-term bonds are gaining appeal among investors, anticipating rate cuts. While markets are pricing in dovish policies, past cycles have shown unexpected hawkish outcomes. Despite the synchronized stance of major central banks, there may be divergences in timing and magnitude of rate adjustments, presenting opportunities in fixed-income markets. The US election adds complexity to rate expectations.
VTM Stock Picks
This week, VTM's stock screeners have identified several promising stocks, with a focus on value, growth, and dividend potential.
💎 Value Stock Picks 💎
Marathon Oil Corp (NYSE: MRO)
P/E Ratio: 10.6
PEG Ratio: 1.5
Marathon Oil Corporation MRO 0.00%↑ offers a favorable P/E ratio coupled with a relatively low PEG ratio, indicating potential undervaluation and promising growth prospects.
Teck Resources Limited (TSX: TECK.B)
P/E Ratio: 12.7
PEG Ratio: 0.8
Teck Resources Limited TECK 0.00%↑ stands out with a moderate P/E ratio and an impressively low PEG ratio, suggesting a potentially undervalued stock with strong growth potential.
🚀 Growth Stock Picks 🚀
Live Nation Entertainment Inc (NYSE: LYV)
ROE: 34.4%
Mean Sales Growth Rolling 12 Months: 34.4%
Live Nation Entertainment, Inc. LYV 0.00%↑ boasts consistently strong sales growth, making it an attractive choice for growth-oriented investors. Live Nation is experiencing significant demand driven by both global latent demand and an increase in the supply of artists touring. Social media is making it easier for fans worldwide to discover and connect with artists. The company benefits from structural advantages such as affordable ticket prices, with two-thirds of tickets priced under $100 and a third under $50, making live events an accessible luxury for many fans.
🏦 Dividend Stock Picks 🏦
Host Hotels & Resorts, Inc. (NASDAQ: HST)
Dividend Yield: 3.8%
Dividend Payout Ratio: 62.6%
Host Hotels & Resorts, Inc. HST 0.00%↑ is an American real estate investment trust (REIT) that invests in hotels. The portfolio consists of 77 primarily luxury and upper-upscale hotels containing approximately 42,000 rooms, with substantially all located in the United States (five of the hotels are located outside of the U.S. in Brazil and Canada).
American Electric Power Company Inc. (NASDAQ: AEP)
Dividend Yield: 4.2%
Dividend Payout Ratio: 79.4%
American Electric Power Company, Inc. AEP 0.00%↑ operates in the utilities sector, providing a blend of stability and income, making it an appealing choice for dividend-focused investors.
Top Reads
✊🏼 A federal judge dismissed securities fraud charges against individuals accused of orchestrating pump and dumps via social media. The judge's argument was that since victims bought stocks on the market rather than directly from the defendants, it wasn't fraud. Pump and Dumps Are Legal Now
🍫 Last year, The Bear Cave published a controversial article critiquing Hershey's, suggesting that competition from MrBeast's chocolate brand, Feastables, posed a significant threat to Hershey's profits. Feastables is gaining traction and The Bear Cave doubles down on his thesis. Hershey’s vs Feastables
🥷 The rise in cyberattacks, fueled by technology adoption and digitization, highlights the need for robust cybersecurity. Boards of directors play a crucial role in strategizing and addressing these threats. Boards of directors: The final cybersecurity defense for industrials
🧠 Quadriplegic Noland Arbaugh demonstrated mind-controlled cursor movement with his Neuralink brain-chip during a livestream chess game. However, FDA inspectors found issues with Neuralink's recordkeeping and quality control for animal experiments after regulatory approval. Neuralink: Like Using the Force
👩⚕️ Investments in women's health could extend lifespan and quality of life, potentially adding $1 trillion annually to the global economy by 2040. McKinsey investigates Closing the women’s health gap.
🗣️ Businesses are preparing for changes at TikTok in case of a sale or ban. Larger brands are diversifying marketing strategies, and smaller influencers exploring other platforms. Big brands could pivot easily if TikTok goes away. For many small businesses, it's another story.