Q: How did this week’s disinflationary Consumer Price Index (CPI) and Producer Price Index (PPI) reports correspond to movements in leading technology stocks?
A: This past Thursday, Microsoft, Nvidia, and Apple made new all-time highs along with the Nasdaq Index. Potential in long term Interest Rate reductions increase the value of future earnings and growth using a model of future discounted cash flows. Correspondingly, high Inflation and Federal Reserve interest rate increases during 2022 appeared to exacerbate the decline in tech stocks.
Headline Round Up
*May: Consumer Price Index Inflation Zero for the Month & Producer Price Index Inflation at -0.2% signaling possible Deflation?
*Skyrocketing Auto and Home Insurance Rates! Key factors according to the Editorial Board of the Wall Street Journal (WSJ)!
*Michael Dell Cashing in Record $2.9 Billion of Dell Technologies Sales This Year.
*General Motors (GM) Buying Back More Stock! Total $16 Billion announced so far.
*25% of Executives along with 20% of HR Professionals Hoped Return to Office Mandates Would Make Some Workers Quit.
*Activist Elliot Management Takes 1.9 Billion Stake in Southwest Airlines After Taking Similar Stake in Texas Instruments. Plans a push for leadership changes?
*Apple Intelligence: A Guide to Apple’s “AI-In-Everything” Strategy.
*Canadian Solar Expanding Again in Mesquite! On Track to Be Second Largest Private Employer in Mesquite.
*World Bank Raises Global Growth Forecast on Strong U.S. Growth Expansion.
*International Energy Agency (IEA) Projects Oil Oversupply by 2030?
*German Voters Appear to Sour on Net-Zero Climate Policies in Elections as German Green Party Emerges as Biggest Loser?
*WSJ’s Reporter Andy Kessler: Your Government at Work or “Why politicians and industrial policy will always find ways to execute poorly”.
*Broadcom Soars After Q2 Earnings Beat Estimates and the Annual Sales Forecast Was Increased! Also announced a 10 – 1 stock split for July!
*NextEra Energy, Inc: Artificial Intelligence (AI) Boom Spurs Need for Big City-Scale Data Centers.
*Andrew Left, Owner of Citron Research, Closes Bold GameStop Short as Company Announced $2.1 Billion Stock Sale. What will GameStop do with $4 Billion in cash?
*U.S. Copper Giant, Freeport-McMoRan, Inc., Says it Can Unlock the Equivalent of a Large New Mine’s Worth of Production From Its Existing Assets by Applying New Processing Technology.
*PIMCO Warns of More U.S. Regional Bank Failures Due to a “Very High” Concentration of Troubled Commercial Real Estate Loans on Their Books.
Mergers and Acquisitions
*Dallas Based Matador Resources Co. to Buy $1.9 Billion in Permian Assets from EnCap Investments, LP.
*Shell Said to be Frontrunner in Bidding for Assets of Trading Firm Pavilion Energy Pte. Owner of Pavilion, Temasek Holdings Pte, seeking at least a $2 Billion valuation!
Dow Jones Industrial Average Index (12/29/2023 – 06/14/2024)
– Courtesy of Bloomberg LP
U.S. Consumer Price Index – Urban Consumers Month over Month, Seasonally Adjusted (06/14/2021 – 05/31/2024)
– Courtesy of Bloomberg LP
U.S. Producer Price Index – Finished Goods Seasonally Adjusted, Month over Month (06/14/2021 – 05/31/2024)
– Courtesy of Bloomberg LP
Invesco QQQ Trust Series 1 & SPDR S&P 500 Exchange Traded Fund (ETF) Trust (12/29/2023 – 06/14/2024)
– Courtesy of Bloomberg LP
C.B.O.E. 30 Year Treasury Bond Yield Index, 10 Year Treasury Note Yield Index & Short-Term Interest Rate Index (06/16/2019 – 06/14/2024)
– Courtesy of Bloomberg LP
Broadcom, Inc. (12/29/2023 – 06/14/2024)
– Courtesy of Bloomberg LP
GameStop Corp. (12/26/2023 – 06/14/2024)
– Courtesy of Bloomberg LP
