Andres
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Core PCE Price Index for April Friday(0:14) Highlights from Salesforce, Best Buy, and Chewy Revenue(0:55) GameStop Convert to cash On the resurgence of memes (3:02)
This holiday-shortened week will likely feature a familiar theme: inflation. Yield-stabilizing and non-stabilizing (or even stabilizing) camps will be keeping a close eye on the Fed’s preferred inflation metric.
The personal consumption expenditures deflator that excludes food and energy, the so-called core PCE index, for April is due to be released on Friday along with the consumption and income figures. Economists expect it to have risen 0.2% last month.
“We expect consumption to continue to slow due to rising interest rates, tighter lending standards and a cooling labor market, leading to PCE growth below its pre-COVID trend of 2.5%,” Citi economists said in the report.
A second measure of first-quarter GDP, along with income and spending, will be released on Thursday, while the Fed’s Beige Book will be released on Wednesday.
Pay attention to Revenue this week
Tuesday Box (box), CAVA Group (Kava) and Bank of Nova Scotia (BNSF) report.
Salesforce (Customer Relationship Management), Dick’s Sporting Goods (DK-S), Agilent (a), Chewie (Chiwi), HP (HPQ), Pure Storage (Prestige), Capri Holdings (India), Octa (Octa), C3.ai (aI) and Abercrombie & Fitch (aWe report the results of the NF.
On Thursday, Best BuyBBY), Birkenstock (Birk), Royal Bank of Canada (the law of nature), Dollar General (President), Foot Locker (Florida), Costco (Fee),gap(GPS), Marvel (MRVR), Dell (Dell), NetApp (NTaP) and Nordstrom (J.W.N.) on the calendar.
Genesco (Global CO) and Frontline (Forward) I’ll get it all done on Friday.
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This weekend’s news
Glass Lewis, a leading proxy advisory firm, has filed a lawsuit against Tesla (TSLa) Shareholders Reject The proposed $56 billion compensation package for CEO Elon Musk was invalidated by a US court earlier this year.
The EV giant is set to hold its annual shareholders meeting on June 13, where attendees will have the opportunity to vote on the compensation package, which will include stock option awards.
Glass Lewis made the proposal in a report published Saturday and seen by Seeking Alpha, with the advisory firm calling out the “excessive” dilutive effect of the package.
Musk’s compensation package was invalidated by Delaware District Judge Kathleen McCormick in late January after a shareholder lawsuit claimed the package was improperly approved.
And GameStop (global)teeth, Raised $933.4 million Through its IPO, it profited from the massive short selling pressure last week.
The video game retailer said it sold 45 million shares of its common stock through its ATM program, marking the largest number of shares ever registered for an ATM program.
The company said last week it had signed an open market purchase agreement with Jefferies for up to 45 million shares.
GameStop now expects first-quarter net sales in the range of $872 million to $892 million, above the consensus estimate of $1.05 billion (based on only three forecasts). This would be down from $1.237 billion a year ago.
GameStop (globalThe surge in stocks early last week has brought memories of 2021 back into the spotlight, sparked by none other than one of the key players in the turmoil three years ago: Keith Gill, a retail investor known online as “Roaring Kitty.”
And in the Wall Street Research Corner,
Active fund manager Cathie Wood said stock markets were top-heavy, encouraging investors to seek safe havens, much like they did during the worst of the U.S. economic crisis.
“In our view, the search for cash and safety in the stock market today is The Great Depression “That’s what happened in the early 1930s,” Wood says. “Once the fear disappeared, the markets opened up and risk-taking became rewarding again.”
Her comments came above a video in which she discusses a “striking” chart from Goldman Sachs that shows a period over the past century when the stock market was driven by just a few stocks. Currently, the concentration of market capitalization in the largest U.S. stocks is 33%, the highest it has been in decades.
“At the peak in 1932, there was a really big scare and people flocked to the same stocks just because they looked safe,” she said. Then, from 1939 to 1946, the largest-cap stocks underperformed relative to the overall market rally.
