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Stock Market’s Standoff Might Finally Crack, Forecaster Tom Lee Predicts |
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According to the bullish Wall Street prophet, Tom Lee of Fundstrat, the stock market might stage a triumphant comeback this week, breaking free from months of turbulence. Lee points to key developments on the horizon that could be the catalyst for this breakthrough. The market eagerly anticipates crucial economic indicators set for release this week, including job figures, manufacturing stats, and service data, all likely to signal a potential economic slowdown. Investors are eyeing these signs of weakness as a positive, hoping for confirmation that the economy is cooling, which could halt the Fed’s spree of interest rate hikes. The Fed’s expected decision to maintain current interest rates on Wednesday (as per the CME FedWatch tool) is anticipated to inject a fresh burst of vigor into the stock market, as per Lee’s analysis. However, the linchpin of hope isn’t just the Fed’s decision; it’s the US Treasury’s quarterly refunding announcement due on Wednesday. This update, coming right before the Fed’s policy announcement, will shed light on the Treasury’s strategy for issuing short and long-term Treasury bonds, a vital piece of the puzzle for the market’s future trajectory. |
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Dow futures little changed as indices rebound |
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US stock futures were trading slightly lower during Monday’s evening deals, after major benchmark averages rebounded ahead of the Fed’s key interest rate decision and Apple’s (NASDAQ:AAPL) earnings result due later in the week. By 6:40 pm ET (10:40 pm GMT) Dow Jones Futures were flat while S&P 500 Futures and Nasdaq 100 Futures slipped 0.1%. In extended deals, Pinterest (NYSE:PINS) popped 12% after reporting Q3 EPS of $0.28 versus $0.21 expected, while revenues came in at $763 million versus $743.94 million expected. Lattice (OTC:LTTC) Semiconductor (LSCC) shed 16% after reporting Q3 EPS of $0.53 versus $0.52 expected. Revenue was reported at $192.17 million versus $192.08 million expected. Wolfspeed (NYSE:WOLF) lifted 10% as the company reported Q1 losses of $0.53 per share versus expected losses of $0.67 per share. Revenue came in at $197.4 million versus $196.21 million expected. Chegg (NYSE:CHGG) lost 5%, reporting Q3 EPS of $0.18 versus $0.17 expected on revenues of $157.9 million versus $152.18 million expected. Ahead in Tuesday’s trade, market participants will be monitoring CB consumer confidence, housing price indexes and the Chicago PMI. During Monday’s regular session, the Dow Jones Industrial Average added 511.4 points or 1.6% to 32,929, the S&P 500 gained 49.5 points or 1.2% to 4,166.8 and the NASDAQ Composite lifted 146.5 points or 1.2% to 12,789.5. On the bond markets, United States 10-Year rates were at 4.888%.
Source: Investing.com |
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Wolfspeed’s Rollercoaster Ride: Earnings Report Sparks Mixed Reactions Among Investors Ah, the stock market, always serving up drama like a binge-worthy TV series! Wolfspeed Inc., the tech-savvy star of the show, kicked off an after-hours spectacle on Monday after unleashing its first-quarter earnings report. The resulting numbers acted like a mixed bag of surprises, inciting a whirlwind of reactions from investors keenly observing the high-flying performance of this tech darling. Earnings Rollercoaster Cue the suspenseful music as the earnings per share (EPS) figures revealed a loss of 53 cents, surprising the analysts who had placed their bets on a 67 cents per share loss. A 4% increase in losses year-over-year — not exactly the gold at the end of the rainbow, but hey, it’s an improvement from what everyone thought! Some investors might have raised an eyebrow at the loss, while the eternal optimists are toasting to the positive trajectory despite Wolfspeed still being in the red. The revenue front, however, played its own unexpected twist. Wolfspeed cashed in $197.4 million, falling short of the estimated $207.64 million. A classic case of missing the mark! This revenue slip might have whispered caution to investors, sparking a ruckus in the market. |
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Investing is a bit like planting a garden: you carefully select the seeds, nurture them with attention and care, and hope that with time, patience, and a bit of luck, you’ll reap a bountiful harvest. But unlike a garden, in the world of investments, you don’t have to worry about weeding – just the occasional pruning of a risky stock or two! |