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- Weekly Wrap-Up - April 13th, 2024
Weekly Wrap-Up - April 13th, 2024
Inflation concerns weigh on the market
CMG Venture & Mark Roussin
April 13, 2024
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Good morning investors!
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Market Talk
The market struggled this week as inflation ticked higher for the third month in a row and a poor outlook among major banks put pressure on equities. These are all things that we have been warning readers about for the past few weeks.
👉 EDGE TAKEAWAY: Between increased inflationary concerns, the economic forecast from major banks and the number of geopolitical risks around us, we believe…upgrade to Edge+ to read the Full Edge Takeaway. We are now offering a FREE 7 day trial if you want to test the waters.
3 Stories Moving the Market
These are some of the biggest stories from the second half of the week that had an influence on market action.
Banks officially kick off earnings season
JPMorgan, Wells Fargo, Citigroup, and BlackRock kicked off bank earnings on Friday morning and the results were mixed. Here’s how the banks performed:
JPMorgan shares were lower after its net income from interest payments were lower than anticipated.
Citigroup shares fell despite beating on the top and bottom lines, due to the bank’s first-quarter profit falling.
Wells Fargo shares were lower after its net income from interest payments fell much more than anticipated
BlackRock shares sank despite beating expectations and reporting record assets under management.
*Note - our full breakdown of the reports from JPMorgan, BlackRock and Delta Airlines were sent out in this morning’s Earnings Recap.
Amazon CEO Andy Jassy releases annual shareholder letter
Amazon CEO Andy Jassy outlined his vision for the company's future in his annual shareholder letter. He emphasized the importance of continuing to improve customer experiences while controlling costs, particularly as Amazon expands into new growth areas like artificial intelligence.
Jassy highlighted the company's shift towards a leaner operation and ongoing efforts to reduce costs. Despite recent layoffs, he remains focused on identifying new opportunities for growth, emphasizing the importance of building foundational services to drive innovation. Jassy sees AI as the next major area of focus for Amazon, with Amazon Web Services (AWS) poised to play a crucial role in supporting AI development.
The company recently appointed renowned AI pioneer Andrew Ng to its board and has made significant investments in AI technology. Jassy is committed to integrating AI across all of Amazon's businesses to drive future success.
Amazon is up +22.5% this year and +10.2% since the announcement that it would be replacing Walgreens in the Dow Jones.
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Consumer sentiment slips as inflation expectations increase
Consumer sentiment decreased in April, with households anticipating higher inflation over the next year, potentially influencing the Federal Reserve to delay interest rate cuts until September.
The University of Michigan's preliminary reading on consumer sentiment was 77.9, down from 79.4 in March, remaining within a narrow range since January. Economists expected a reading of 79.0.
Meanwhile, one-year inflation expectations rose to 3.1% from 2.9% in March, while the five-year outlook increased to 3.0%, the highest in five months.
This follows data showing increased consumer prices for the third consecutive month in March. Despite the CPI showing increased inflation, producer prices only showed moderate increases in March.
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IE+ Posts of the Week
We continue to push out more and more content every week to give investors that edge. Here are the posts Investor’s Edge+ subscribers received this week.
Edge Report
Mondays are for the investors. Every Monday morning we share exactly what we’re watching in the week ahead, how we’re positioning, and even share a sneak peek into our systems and models. This week we discussed the upcoming inflation reports as well as banks kicking off earnings season. See the full report here:
Portfolio Update - March
Every month we share a full access look into our portfolios, including holdings, performance, activity and our watchlists for the upcoming month. You can see both of our portfolios here:
Stock Deep Dive - Taiwan Semiconductor
Our Deep Dive focused on Taiwan Semi this week. We not only broke down the financials of the second largest chipmaker in the world but we also shared our valuation models and price targets for 2024. You can see the full analysis here:
Earnings Recap
Every week during earnings season we share a recap of the quarterly reports from stocks that we cover. You can see this week’s earnings recaps here:
The Week Ahead
Fed speeches will be the main catalyst for market action next week, followed closely by earnings reports from several major companies.
Earnings Reports
Earnings season is officially underway. There are several major names we will be watching here at The Investor’s Edge, including Taiwan Semiconductor, UnitedHealth, Procter & Gamble, Johnson & Johnson, Bank of America, Netflix, Abbott Labs, Morgan Stanley, Charles Schwab, Goldman Sachs, and Prologis:
Here is the full calendar of scheduled earnings releases:
Source: Earnings Whispers
Economic Reports
Retail sales, housing data and manufacturing reports from New York and Philadelphia top the tape next week, but investors will be paying close attention to the comments from the numerous Fed speeches. Interest rates are all the market cares about right now.
Here is the full calendar of events we will be watching:
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Thank you for reading this edition of the Weekly Wrap-Up. Have a great weekend!
Until next time investors!
Mark & Chris
The Investor’s Edge
Disclosure
This is not investing advice. It is very important that you do your own research and make investments based on your own personal circumstances, preferences, goals and risk tolerance.
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