Mixed Inflation Readings Highlight Rocky Week

The Dow continued its second-quarter slump

Deputy Editor
Apr 12, 2024 at 2:12 PM
facebook X logo linkedin


It was a rocky week for the Dow Jones Industrial Average (DJI), which was on track for its fifth-straight loss on Friday, and its longest losing streak since June. The blue-chip benchmark was also trading at its lowest level since a mid-February rally that preceded record highs. The S&P 500 Index (SPX) and Nasdaq Composite (IXIC) fared somewhat better this week, the latter getting a boost from Thursday's tech rally, but were also on track for weekly losses.

A hotter-than-expected consumer price index (CPI) reading for last month was to blame for much of this pessimism, and the Federal Reserve's March meeting minutes didn't help, as they reflected officials' unease over stubbornly high inflation. Overall, Wall Street questioned whether the Fed will cut rates any time soon. However, the producer price index (PPI), which came in lower than analysts anticipated, provided some relief later in the week. 

Bull Notes This Week

There was plenty to cover on the analyst front this week, with many stocks sporting attractive entry points after recent dips. Analysts saw upside for Ulta Beauty (ULTA) after its recent selloff, Take-Two Interactive (TTWO) ahead of the release of Grand Theft Auto VI, and Ally Financial (ALLY) before earnings. American Eagle Outfitters (AEO) and Molson Coors Beverage (TAP) scored upgrades as well, alongside chip giant Nvidia (NVIDIA)GoodRx (GDRX), Nike (NKE), and GitLab (GTLB)

Newsy Stock Movers

Boeing (BA) suffered yet another in-flight issue this week. Elsewhere, semiconductor stocks faced China headwinds, while the crypto sector got a boost from Bitcoin (BTC). Pfizer (PFE) reported positive trial data for its respiratory syncytial virus (RSV) vaccine, while news that Vertex Pharmaceuticals (VRTX) will acquire Alpine Immune Sciences (ALPN) in a billion-dollar merger sent both ALPN and Vera Therapeutics (VERA) higher. 

More Fed Comments Next Week

The week ahead will bring a host of economic data, as well as the Fed's Beige Book report, and speeches from several Fed officials. Several big banks will report earnings next week as well. 

Since bottoming in late October last year, the S&P 500 Index (SPX) has gained over 25%. Here's a summary of the best and worst-performing sectors during this period, per Schaeffer's Senior Quantitative Analyst Rocky White. Looking ahead, Schaeffer's Senior V.P. of Research Todd Salamone points out two indicators of potential market volatility

 

Target Effortless Triple-Digit Gains Every Sunday Evening For Life!

This is your chance to triple your profit potential on Sunday evenings, without spending all your free time watching the market.

On Sundays, as a Weekend Plus subscriber, you’ll get up to 6 trades every Sunday, each targeting gains of 200% or more.

Start targeting gains like the ones our subscribers have seen recently, including:

213.3% GAIN on AutoNation calls
100.0% GAIN on Monster Beverage calls
100.4% GAIN on Walgreens Boots Alliance puts
100.4% GAIN on ON Semiconductor calls
257.7% GAIN on Dell calls

101.0% GAIN on Apollo Global Management calls
103.6% GAIN on JP Morgan  Chase calls
105.3% GAIN on DraftKings calls
101.3% GAIN on Airbnb calls
203.0% GAIN on Shopify calls
102.0% GAIN on Cboe Global Markets calls
100.9% GAIN on Boeing calls
102.1% GAIN on Microsoft puts
102.3% GAIN on First Solar calls
101.5% GAIN on PulteGroup calls
101.0% GAIN on Apple calls
209.4% GAIN on NXP Semiconductors calls
100.8% GAIN on Uber Technologies calls
100.4% GAIN on Academy Sports and Outdoors puts
102.2% GAIN on Trade Desk calls
100.8% GAIN on DoorDash calls
100.0% GAIN on Camping World Holdings puts
100.0% GAIN on Cboe Global Markets calls
100.2% GAIN on C3.ai calls
238.5% GAIN on Oracle calls

 
 
 


 
 

Rainmaker Ads CGI