Target Hits the Bullseye!
By Thu, May 23, 2019
Happy Thirsty Thursday! The bulls are grabbing a cold one in a collective toast to the most recent FOMC meeting minutes release. Turns out the Fed members felt that a slow and steady approach to adjusting the federal funds interest rate was the best game plan…for now. How long do you think the fed will keep the rate at 2.25-2.5%? Maybe stretching it out until the 2020 elections? Food for thought!
Whip Saw Wednesday. Stocks were all about that chop chop on Wednesday as the buzz began hitting the streets that Washington could impose restrictions on another Chinese technology company. The back and forth between the worlds largest economies has the bulls slightly spooked that the trade war is just heating up rather than cooling down. Can we just tax China at 100% of everything and put China in checkmate already?? We for one are waiting for the SP500 to regain ground above its 50 Daily Moving Average before adding to any new longs.The Bears are looking mighty eager to take that drink…but it may be premature yet.
Target Hits the Bullseye! Target (TGT) earnings surprised the market coming in at $1.53 per share, which beat the streets estimate of $1.43. Earnings are up 15.9 percent from the same period last year. Target’s beat was fueled by an impressive 42% digital sales increase. Does Amazon (AMZN) have any competition in this space? Or is there plenty of online sales to go around?
MARKETS
- Crypo: Bitcoin failed to hold above $8,000 today. With a quiet headline day for crypto across the board, the most popular digital currency saw less than its usual “to the moon” volume for the second day in a row.
- Pot Stocks: Sorry Facebook marketers and instagram guru’s…You still can’t sell, or promote Cannabis on either platform (CBD products are ok though!). Facebook policy makers got together this week and made the call that it will continue its stance against marijuana advertising on its social media platforms. It’s just a hunch, but we bet they don’t want the Feds breaking down their doors as the US has yet to follow in the footsteps of our Canadian neighbors in the north on decriminalization at the national level.
ON THE LOOKOUT
Jobless Claims at 8:30
The Trump administration has been extremely vocal on the record low jobless claims that the country is currently enjoying. Last weeks numbers were impressively low. Will the trend continue today? The bulls could use a little extra push right now.
New Homes Sales at 10:00
New Homes Sales have been on the rise, hitting 5-year highs as of last month. Buyers may be scrambling to take advantage of low-interest rates now. Moving into their new homes before the tightening of credit rears its ugly head.
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EARNINGS
Target (TGT) may be in the books,but there is more retail key retailers reporting today. Ross Stores, Inc. (ROST) reports tomorrow along with Best Buy Co Inc (BBY). These will be interesting earnings calls to eavesdrop in on. What will CEOs have to say about trade issues affecting their bottom line? Do you think consumers are still going out shopping till they drop? Investors will be watching and listening for potential headwinds as Q1 earnings keep rolling on.
ECONOMY
Crude oil inventories rose by 4.7 million barrels last week, versus expectations for a decline of nearly 600,000 barrels, this gushing surprise caused oil futures traders to drop the price of crude down below the 50 DMA to close the day negative -2.87. Mind you, the price of crude (CL_F) has been running in sync with major US Indexes. Could the price of oil be the canary in the coal mine signaling markets might slip?
WATER COOLER
Trump on met with Democratic lawmakers on Wednesday morning to discuss infrastructure. Unfortunately, it was a closed press meeting so we didn’t get to see the drama unfold. The President abruptly ended a meeting which was supposed to be focused on infrastructure spending.
We can only imagine being a fly on the wall, but what we know is that at some point the talks with south, ending with Trump blasting them over the continuing investigations by lawmakers and U.S. House Speaker Nancy Pelosi’s finger pointing that he is engaged in a cover-up. How important do you think an infrastructure bill is? I know my car maintenance bill would be slimmer if they got their rears in gear and pass a bill already!
About the Author
The authors of this Scoop are the editorial team at Stock Card, led by Hoda Mehr. Hoda Mehr is CEO and Co-founder of Stock Card and the host of Renegade Investors podcast. She runs a community of 40,000 stock market investors and manages Stock Card's successful flagship portfolio, Roll with Our CEO, on Stock Card Portfolio Store. Hoda is an Economist with an MBA from Concordia, John Molson School of Business. She applies behavioral economics, data journalism, and storytelling to all aspects of her work. Before starting Stock Card, Hoda worked as a strategy and insights lead at technology companies including Symantec, Aimia and Sony. Create a free account to do your stock market research easily and mistake-free: Stock Card Stock Card
