Futures are slightly down this morning after markets closed higher yesterday after a tumultuous trading session fueled by Fed Chair Powell. Powell acknowledges that disinflation has begun in the goods sector, meaning that prices are slowly going down. But, a record-low unemployment rate might push the Fed to raise interest rates higher, we are definitely not out of the hawkish territory.
Chipotle Mexican Grill (CMG) is down 5% after missing earnings, revenue, and same-store sales which is uncharacteristic for the stock. But, the earnings track if the consumer is actually watching their spending and going out less to eat.
Today's earnings include Disney (DIS) and also Robin Hood (HOOD). Disney had a recent hit with the new Avatar movie, raking in over $2 Billion dollars, a much-needed break for the company. Robin Hood is spending a lot of money and thought on how to gain customers and I am eager to find out if it is working.
Stocks to Watch
American Express (AXP) gets an upgrade to overweight from the equal weight from Morgan Stanley. If prices increase, it is realistic to assume that people spend more money on credit cards. Furthermore, if prices stabilize consumers will once again be spending more.
Goldman Sachs (GS) receives a price target hike from Wells Fargo. The stock is up 9% for the year, outperforming the S&P 500.
Happy Investing,
The Punkrock Capitalist
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