Lockstep's Market Recap - 6 May 2024
Lockstep Investing
Invest smarter with my free newsletter, stock screener, and exclusive portfolio.
Drivers of Performance
Economic News
The market ended higher for the 3rd consecutive day, supposedly due to optimism that the Federal Reserve will cut interest rates; however, according to the CME Group’s Fedwatch, expectations for a rate cut haven’t significantly changed, with the first cut still priced in for September. Perhaps it was Federal Reserve Chair Jerome Powell’s comment suggesting that rate increases are unlikely that buoyed sentiment.
Other members of the Fed Committee echoed Powell's sentiment yesterday, with Richmond Fed Reserve President Thomas Barkin and New York Fed President John Williams suggesting that current monetary policy is appropriate to bring inflation down and that a rate cut is likely the next step.
Company Specific News
Micron Technology (MU) had a decent day yesterday, appreciating +4.7% after Baird upgraded the stock, citing stronger-than-expected DRAM pricing, thus raising the target price from $115 to $150.
Paramount Global (PARA) ?increased +3.1% after reports that it would enter negotiations with Apollo and Sony following the lapse of the Skydance deal.
On the downside, Tyson Foods (TSN) was the biggest loser in the S&P 500 after reporting mixed Q2 2024 results and warning of inflationary pressures impacting consumers, potentially leading to a weaker Q3 2024 performance for its pork and prepared food divisions.
Interestingly, more corporations are now acknowledging the impact of inflation on their customers, resulting in weaker guidance, a trend likely noted by the Federal Reserve.
领英推荐
Stay Informed
For a deeper dive into market drivers and lessons in investing, don’t forget to check out Lockstep’s Weekly Investing Insights.
Last week we covered the following:
? The Challenges of Institutional Investors: Investing is one of the few professions where individual investors have an advantage over professionals. We explore institutional investors’ shortcomings.
? Taking advantage as an Individual Investor: It is all very well knowing the limitations of professional money managers. Joel Greenblatt teaches us how we can take advantage!
Missed this week’s issue?
Don't worry, you can read it here...