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Stock Market Today: Dow Jones, S&P 500 Tumbles; Intel To Invest $20 Billion In New Factories; Netflix Plunges On Slowing Subscriber Growth

The stock market slides as Netflix sees subscription growth slowdown.
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Stock Market Today Mid-Morning Updates

On Friday, the Dow Jones Industrial Average is down by 150 points. The Nasdaq fell for a third straight session, ending Thursday nearly 12% below its latest record close in November. Investors are also swapping out their growth and technology stocks that thrived in the early days of the pandemic. This along with investors jitters on the Fed’s plans to increase interest rates to combat raging inflation. However, IMF head Kristalina Georgieva says that the interest rate hikes by the Federal Reserve could throw cold water on the already weak economic recoveries in certain countries.

She says that an increase in U.S. rates could have significant implications for countries with higher levels of dollar-denominated debt. She also says that it was therefore hugely important for the Feds to communicate its policy plans to prevent surprises. In other news, Under Armour (NYSE: UAA) is up after Citi (NYSE: C) upgraded the stock to a Buy rating, saying that the company is emerging from the pandemic in a strong position in North America.

Among the Dow Jones leaders, shares of Apple (NASDAQ: AAPL) are down 0.33% today while Microsoft (NASDAQ: MSFT) is also down by 0.62%. Home Depot (NYSE: HD) and Nike (NYSE: NKE) however, ticked higher on Friday. Among the Dow financial leaders, Visa (NYSE: V) and Goldman Sachs (NYSE: GS) are trading lower at 0.30% and 0.78% respectively.

Shares of electric vehicle (EV) leader Tesla (NASDAQ: TSLA) are down by 2.06% on Friday. Rival EV companies like Rivian (NASDAQ: RIVN) and Lucid Group (NASDAQ: LCID) are also down by 1.58% and 1.98% today. Chinese EV leaders like Li Auto (NASDAQ: LI) and Xpeng Motors (NYSE: XPEV) are trading lower at 3.43% and 4.80% respectively.

Dow Jones Today: Treasury Yields And Jobless Claims Unnerving Investors?

Following the stock market opening on Friday, the S&P 500, Dow Jones, and Nasdaq are trading 0.72%, 0.52%, and 1.06% lower. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is down by 1.33% on Friday, while the SPDR S&P 500 ETF (NYSEARCA: SPY) is up by 0.77%.

Today, the yield on the benchmark 10-year Treasury ticked below 1.8% on Friday morning. This comes after hitting 1.9% on Wednesday, with investors trailing on the Federal Reserve’s timeline for raising interest rates and broadly tightening monetary policy. Also, a pullback in central bank economic support measures along with rising inflation has pushed investors to sell out throughout the week.

Bitcoin And Cryptocurrencies Tumble

Bitcoin prices fell sharply yesterday, dropping to below $40,000 while Etherium prices also dived, wiping out nearly $150 billion from the crypto market. The declines in cryptocurrencies seem to follow Wall Street losses on Thursday. This goes against the investment case for Bitcoin serving as a hedge against rising inflation as a result of government stimulus. Analysts point out that the risk is that a more hawkish Federal Reserve may damper the prospects of investing in cryptocurrency.

[Read More] Best Lithium Battery Stocks To Buy Now? 4 To Know

Intel Reveals $20 Billion Plan To Expand Manufacturing Capabilities In Ohio

Intel (NASDAQ: INTC) could be worth keeping an eye on in the stock market today. This could be the case given the chipmaking goliath’s latest announcement. Notably, Intel is now looking to invest $20 billion in efforts to expand its chip manufacturing capabilities. In detail, this will take place via the construction of at least two semiconductor fabrication plants (fabs). Also, these fabs will be built on a 1,000-acre site nearby Columbus, Ohio. On top of that, Intel also currently has the option to expand on the current construction operation. This could ideally see the firm grow its construction project to up to 2,000 acres and eight fabs.

For the current plans, Intel is planning to begin construction of the first plant this year. Should things go smoothly, the firm sees the new facility beginning work by 2025. In an interview with Time magazine, CEO Pat Gelsinger also revealed Intel’s plans with the space. He starts by saying that Intel is aiming for it to be the largest fab globally. Additionally, he comments, “We helped to establish the Silicon Valley. Now we’re going to do the Silicon Heartland.

Overall, the current move would be in line with the U.S.’s plans to increase domestic chip production figures. With the semiconductor shortages significantly impacting key markets like the automotive industry, this is understandable. As such, I could see investors eyeing INTC stock when considering possible long-term growth names in the market today. Now, INTC stock is currently gaining by 0.82%.

INTC stock chart
Source: TD Ameritrade TOS

[Read More] Best Monthly Dividend Stocks To Buy Now? 5 For Your List

Netflix Slumps Over 20% On Disappointing Subscriber Growth Outlook 

In other news, Netflix (NASDAQ: NFLX) is making waves in the stock market now after its latest quarterly earnings report. To begin with, the company’s top-line results are worth noting. Namely, Netflix posted earnings of $1.33 on revenue of $7.71 billion for the quarter. For earnings per share, the company smashed consensus projections of $0.82. Regarding quarterly revenue, it was mostly in line with Street estimates. However, the real metric investors seem to be focusing on now is the company’s latest subscriber growth figures.

In its latest quarter, Netflix added a total of 8.28 million subscribers, topping analyst forecasts of 8.19 million. This would mark a notable decrease from the 3.98 million subscribers it added back in Q1 2021. Moreover, the company also provided a less-than-ideal outlook for subscriber growth in the current quarter as well. According to Netflix, it will likely add 2.5 million new paying subscribers to its current base. This translates to less than half of forecasts of 6.93 million. Because of all this, NFLX stock is currently sliding by 23.23% as of today’s opening bell. 

All in all, Netflix cites growing competition in the streaming space for this ‘safe’ guidance. Nevertheless, it is also important to note these results are in comparison to pandemic era peaks. As such, the sell-off in NFLX stock could make for a good entry point now.  

NFLX stock
Source: TD Ameritrade TOS

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The post Stock Market Today: Dow Jones, S&P 500 Tumbles; Intel To Invest $20 Billion In New Factories; Netflix Plunges On Slowing Subscriber Growth appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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5 Top Consumer Stocks To Watch Right Now

Are these consumer stocks a buy amid the earnings season?
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5 Trending Consumer Stocks To Watch In The Stock Market Now         

As we tread through the earnings season, consumer stocks could be worth watching in the stock market this week. This would be the case since a number of big consumer names such as Costco (NASDAQ: COST) and Macy’s (NYSE: M) will be posting their financials for the quarter. As such, investors will be keeping an eye on these reports for clues on the strength of consumer spending amid this period of high inflation.

However, despite the soaring prices across the economy, it seems that consumers are surprisingly showing resilience. According to the Commerce Department, retail sales in April outpaced inflation for a fourth straight month. This could suggest that consumers as a whole were not only sustaining their spending, but spending more even after adjusting for inflation. Ultimately, it could be a reassuring sign that consumers are still supporting the economy and helping to diminish the narrative of an incoming recession. With that being said, here are five consumer stocks to check out in the stock market today.

Consumer Stocks To Buy [Or Sell] Right Now

Nordstrom

retail stocks (JWN stock)

Starting off our list of consumer stocks today is Nordstrom. For the most part, it is a fashion retailer of full-line luxury apparel, footwear, accessories, and cosmetics among others. The company operates through multiple retail channels, boutiques, and online as well. As it stands, Nordstrom operates around 100 stores in 32 states in the U.S. and three Canadian provinces.

Yesterday, the company reported its financials for the first quarter of 2022. Starting with revenue, Nordstrom pulled in net sales worth $3.47 million for the quarter. This marks an increase of 18.7% from the same quarter last year. Its Nordstrom banner saw net sales rise by 23.5% year-over-year, exceeding pre-pandemic levels. Next to that, its Nordstrom Rack banner saw a 10.3% increase in net sales from last year. Besides, net earnings were $20 million, with earnings per share of $0.13 for the quarter. Considering Nordstrom’s solid quarter, should you invest in JWN stock?

[Read More] Best Stocks To Invest In Right Now? 5 Value Stocks To Watch This Week

The Wendy’s Company

best consumer stocks (WEN stock)

Next up, we have The Wendy’s Company. For the most part, it is the holding company for the major fast-food chain, Wendy’s. Being one of the world’s largest hamburger fast-food chains, the company boasts over 6,500 restaurants in the U.S. and 29 other countries. The chain is known for its square hamburgers, sea salt fries, and the Frosty, a form of soft-serve ice cream mixed with starches. WEN stock is rising by over 8% on today’s opening bell.

According to an SEC filing, Wendy’s largest shareholder, Trian Partners, is looking into making a potential deal with the company. Trian said that it is considering a deal to “enhance shareholder value.” Also, the firm adds that this could lead to an acquisition or business combination. In response, Wendy’s stated that it is constantly reviewing strategic priorities and opportunities. It added that the company’s board will carefully review any proposal from Trian. Given this piece of news, will you be watching WEN stock?

[Read More] 4 Semiconductor Stocks To Watch In The Stock Market Today

Foot Locker

FL stock

Another stock investors could be watching is the shoes and apparel company, Foot Locker. In brief, the company uses its omnichannel capabilities to bridge the digital world and physical stores. As such, it provides buy online and pickup-in-store services, order-in-store, as well as the growing trend of e-commerce. Some of its most notable brands include Eastbay, Footaction, Foot Locker, Champs Sports, and Sidestep. Last week, the company reported its results for the first quarter of the year.

For starters, total sales came in at $2.175 billion, a slight uptick compared to sales of $2.153 billion in the year prior. Next to that, Foot Locker reported a net income of $133 million. Accordingly, adjusted earnings per share came in at $1.60, beating Wall Street’s expectations of $1.54. CEO Richard Johnson added, “Our progress in broadening and enriching our assortment continues to meet our customers’ demand for choice. These efforts helped drive our strong results in the first quarter, which will allow us to more fully participate in the robust growth of our category going forward.”  As such, is FL stock one to add to your watchlist? 

Tyson Foods 

TSN stock

Tyson Foods is a company that built its name on providing families with wholesome and great-tasting protein products. Its segments include Beef, Pork, Chicken, and Prepared Foods. With some of the fastest-growing portfolio of protein-centric brands, it should not be surprising that TSN stock often comes to mind when investors are looking for the best consumer stocks to buy. 

Earlier this month, Tyson Foods provided its fiscal second-quarter financial update. The company’s total sales for the quarter were $13.1 billion, representing an increase of 15.9% compared to the prior year’s quarter. Meanwhile, its GAAP earnings per share climbed to $2.28, up 75% year-over-year. According to Tyson, these financial figures are a reflection of the increasing consumer demand for its brands and products. To top it off, the company was also able to reduce its total debt by approximately $1 billion. Thus, does TSN stock have a spot on your watchlist?

[Read More] Stock Market Today: Dow Jones, S&P 500 Rise, Wendy’s Stock Gains On Potential Deal

DoorDash

food delivery stocks (DASH Stock)

DoorDash is a consumer company that operates an online food ordering and delivery platform. In fact, it is one of the largest delivery companies in the U.S. and enjoys a huge market share. The company connects hundreds of thousands of merchants to over 25 million consumers in the U.S., Canada, Australia, and Japan through its local logistics platform. Accordingly, its platform allows local businesses to thrive in today’s “convenience economy,” as the company puts it.

On May 5, the company reported its first-quarter financials for 2022. Diving in, it posted a revenue of $1.5 billion, growing by 35% year-over-year. This was driven by total orders that grew by 23% year-over-year to $404 million. Along with that, it reported a GAAP gross profit of $662 million, an increase of 34% year-over-year. The company said that it added more consumers than any quarter since Q1 2021, due in part to the growth of its DashPass members. The growth in Monthly Active Users and average order frequency has helped it gain share in the U.S. Food Delivery category this quarter as well. Given DoorDash’s performance for the quarter, should you watch DASH stock?

If you enjoyed this article and you’re interested in learning how to trade so you can have the best chance to profit consistently then you need to checkout this YouTube channel. CLICK HERE RIGHT NOW!!

The post 5 Top Consumer Stocks To Watch Right Now appeared first on Stock Market News, Quotes, Charts and Financial Information | StockMarket.com.

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Finding Shelter in an Inverse ETF

As the old saying goes, “What goes up must come down.” Indeed, up until the recent selling wave caused by Russia’s war against Ukraine and the continued…

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As the old saying goes, “What goes up must come down.”

Indeed, up until the recent selling wave caused by Russia’s war against Ukraine and the continued effects of supply chain disruptions amid the COVID-19 pandemic, tech stocks, including semiconductors, were the darlings of the investment world. That is, it seemed as if the sky-high valuations of some tech stocks were sustainable in an atmosphere of seemingly perpetual growth.

That, of course, was not the case, and the too-good-to-be-true valuations were quickly brought down to earth by the forces of inflation and tight monetary policy. As a result, the tech-heavy Nasdaq entered a free-fall that has not yet found a bottom.

At the same time, that does not mean that we should abandon the sector as a lost cause. One such way to play the sector during its downhill slide is the exchange-traded fund (ETF) Direxion Daily Semiconductor Bear 3X Shares (NYSEARCA: SOXS).

As its title suggests, this is an inverse ETF, meaning that it is built to go up in value when its parent index goes down. Specifically, SOXS provides three times leveraged inverse exposure to a modified market-cap-weighted index of semiconductor companies that trade in American markets by using swap agreements, futures contracts and short positions.

While the index’s holdings are weighted by market capitalization, the fund’s managers cap the weights of the top five securities in the portfolio at 8% each. The weight of the remaining securities is capped at 4% each.

As of May 24, SOXS has been up 0.37% over the past month and up 24.73% for the past three months. It is currently up 60.47% year to date.

Chart courtesy of www.stockcharts.com

The fund has amassed $258.15 million in assets under management and has an expense ratio of 1.01%.

In short, while SOXS does provide an investor with a way to invest in an inverse ETF, this kind of ETF may not be appropriate for all portfolios. Thus, interested investors always should conduct their due diligence and decide whether the fund is suitable for their investing goals.

As always, I am happy to answer any of your questions about ETFs, so do not hesitate to send me an email. You just may see your question answered in a future ETF Talk.

The post Finding Shelter in an Inverse ETF appeared first on Stock Investor.

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Will Albertsons outperform due to its high return on equity for low beta?

Albertsons Companies Inc. (NYSE:ACI) is trading at $29. The stock has risen 81.25% from the IPO in the last quarter of 2020. In the two years since going…

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Albertsons Companies Inc. (NYSE:ACI) is trading at $29. The stock has risen 81.25% from the IPO in the last quarter of 2020. In the two years since going public, Albertsons Companies paid dividends each quarter. The annual dividend currently stands at $0.48, with a yield of 1.64%.

Albertsons is rated high on both value and growth. The company’s heritage has been built over the years since its founding in 1939. Today, the company is the second-largest traditional grocer in the US.

The company went public during a pandemic to fund new growth opportunities. However, it faces the headwinds of inflation and bear markets. Despite pressures, Albertsons will be among the few stocks that will outperform the market.

The ROE stands at 74.48%. This is a fundamental strength that should make investors troop to Albertsons. The EPS is at $2.8 and growing at more than 6.13%. At the valuation of $29, the PE is just about 10. All this for a beta of only 0.3, indicating a low risk.

Albertsons has support at $26.80 and resistance at $36.75

Source – TradingView

Albertsons has support at $26.80. This week, the stock has been bullish, having gained 7.82%. It is among a handful of stocks that have been braving the bear markets. This analysis projects that the stock will face some resistance at $36.75. However, it would break out at the next earnings release on July 28. If an investor were to take a position today, there is the likelihood of enjoying significant gains by the next earnings call.

Summary

Albertsons is an attractive value and growth stock. The share is trading at $29 with a price target of $36 by the end of July. Albertsons is also emerging as an attractive dividend stock.

The post Will Albertsons outperform due to its high return on equity for low beta? appeared first on Invezz.

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