We see two big stories out this morning that have everything to do with Amazon’s major effects and broader than ever reach.
First we have the story that Walgreens (WBA) may be close to buying AmerisourceBergen (ABC), and then a Wall Street Journal story is out saying Amazon is pushing hard to become a hospital supply play, pushing down a bunch of the hospital supply names in the pre-market. There is no doubting Amazon’s prowess and the only thing that stands in the way of higher prices for the stock is eventual concerns that Washington sees the company as being too strong in their dominance — and if valuation concerns creep back into Wall Street’s analysis (a correction that deepens can bring this into play).
Catch up with all of today’s news already moving the markets, earnings from the likes of Under Armour (UUAA), Pepsico (PEP), analyst upgrades, downgrades, price target changes, and more in our news stream or in our proprietary and unmatched across the financial websphere News Ranker algorithm. Think of how valuable a filtered Bloomberg terminal would be where we extract all the noise and just deliver all the actionable news that really matters! We also have some of the best ratings that provide amazing results to those who have been following our calls — as of late December, 95% of our “A” rated stocks were up!
Notes from Monday’s Action
Ulta Beauty (ULTA) – news of potential product issues came out today and pushed shares lower. If you recall, we’ve tagged the shares recently for its underperformance.
REITs still unable to get their mojo going, even on a big up day across the day.
Wynn Resorts (WYNN) has not had the same feel since CEO Steve Wynn stepped down. The shares initially popped on news of his departure but have since retreated about $16 from those levels.
Nvidia (NVDA) wasn’t running at full speed on Friday following its blowout earnings. The stock was actually lower on news of A.I. chip competition heating up. Company will be at a Goldman tech conference Tuesday so bulls will be hoping to get some positive commentary to get the stock juiced up.
Infrastructure stocks rule the roost – yet another budget spending bill spike for this familiar group of names – Boeing (BA), Lockheed Martin [LMT]], Northrop Grumman (NOC), Raytheon (RTN), Caterpillar (CAT), Deere & Co. (DE), Vulcan Materials (VMC)
Higher beta stocks outperforming in today’s tape – Arista Networks (ANET), bluebird bio (BLUE), Hubspot (HUBS), SolarEdge Technologies (SEDG), Madrigal Pharmaceuticals (MDGL), GrubHub (GRUB). Shopify (SHOP), China Lodging Group (HTHT), IPG Photonics (IPGP), MercadoLibre (MELI), Visa (V), Adobe Systems (ADBE), Red Hat (RHT), Autohome (ATHM), Match Group (MTCH), Amazon.com (AMZN)
Laggard stocks staying weak – Expedia (EXPE), Chipotle (CMG), Alibaba (BABA) – although the stock finished with a small gain, it was more than $3 off the intraday highs, Home Depot (HD) – lost $3 off the intraday highs and closed slightly in the red,
Wait, What? – Ray Dalio Flip-Flops, Sees Trouble Ahead Now
Back on Jan. 25, Bloomberg headlines were all about cash is trash and billionaire hedge fund manager Ray Dalio was leading that market mindset parade. Fast forward two weeks and one market whoosh down and suddenly the call is reversed.
Now Mr. Dalio is looking for a recession ahead! I have no problem with changing your mind and doing it maybe a bit quickly, but a couple of the anecdotes Mr. Dalio added in his concerns aren’t exactly new — one was a big gap between the haves and the have-nots, which he cited as creating social and political sensitivities, and another worry was the ability of global central banks to be able to withstand an economic pullback.
In regards to these points, a) the gap between the haves and have nots has been there a long time, so not anything news or insightful really and b) we all know the governments will try and print their way out of any economic slowdown — remember rates went negative in some areas during the post-financial crisis. I’m not going to argue Mr. Dalio’s amazing track record but it’s a bit out of the ordinary to see such a quick flip from someone who has been revered as one of the best investment minds of our time.
We have a financial media that gives free passes all around and not much accountability is asked. It’s no shock the news media space has turned into a fake news-laden headline mess, but one thing is certain: when it comes to your investing/market news space you need a trusted source and no doubt this is what we are building with StockNews.com.
Automate, Invest, and Forget the Rest
Making things automatic is what most people are used to. Companies love the monthly bank debit sweeps for different bills and many push customers to accept that fast payment plan. Why is that? Simply that you don’t have to think twice about remembering to stay timely with your monthly expenses.
I think investors should adopt that same mentality when it comes to investing. Set up a system with an online broker to do the same when it comes to your contributions. Make a goal to start this each month and get this process underway if you haven’t done so already. Brokers are looking to accommodate anyone that is ready to put their investing dollars to work. Find out what a brokerage’s dividend payout policy is if you want to reinvest your dividends (usually recommended and done for little to no cost, depending on the brokerage).
My goal for StockNews.com is to open people’s eyes about what can happen even with a small sum of money when it comes to compound interest/dividends or buying great growth stocks!
We certainly aim to please, so if you have any suggestions for the service, don’t hesitate to reach out!