My Top 10 Items to Monitor: Friday, March 21
1. Wall Street appeared set for a weaker start, with the Nasdaq declining throughout the week. The S&P 500 was on the edge, while the Dow was on track for a positive week. Notably, Microsoft aims to sidestep its longest weekly loss since 2008.
2. President Donald Trump is urging the Federal Reserve to reduce interest rates. In response, the Fed is adopting a wait-and-see approach regarding Trump’s policies, having maintained interest rates in a recent meeting and projecting two potential cuts in 2025.
3. Nike exceeded quarterly expectations but offered disappointing guidance, compounded by excessive inventory. Similar to Tesla, the stock is attractive to portfolio managers, but it’s also pricey. New CEO Elliott Hill is still navigating his new role.
4. Elon Musk advised Tesla employees to retain their stock holdings amidst increasing backlash from Wall Street and electric vehicle buyers, which feels overwhelming. Incidents of vandalism at Tesla showrooms and charging stations have been reported due to Musk’s political views.
5. Shares of Accenture faced slight pressure on Friday morning following a drop exceeding 7% the previous day. The company attributed recent struggles to federal government spending cuts adversely affecting business operations.
6. Lennar‘s quarterly delivery numbers fell short of expectations, resulting in a 4% drop in the homebuilder’s stock. High mortgage rates continue to be a significant issue, which is also affecting Home Depot, as CEO Ed Decker highlighted elevated home prices during a conversation last night.
7. FedEx experienced a 9% decline in share value after reporting substantial impacts from industrial weakness during the quarter, despite strong consumer online trends. There remains uncertainty about the effects of tariffs moving forward.
8. Shares of Micron dropped over 3%. Although there was strong performance in high bandwidth, high NAND inventories remain a concern. The initial market reaction of a rise following quarterly results should have been more cautious.
9. Morgan Stanley responded positively to Darden‘s latest numbers, raising its price target for the owner of Olive Garden and LongHorn Steakhouse. Analysts held optimistic views, particularly regarding casual dining, which favorably impacts Texas Roadhouse.
10. Goldman Sachs upgraded Danaher to a buy-equivalent rating, stating that the investment has been de-risked. While I am not currently selling, the stock has underperformed after previously strong results.
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