The Fed Keeps Truckin’ Along

Get set for the week in just five minutes… Published By Money & Markets, LLC. June 17, 2024 Published By Money & Markets, LLC. June 17, 2024 [Turn Your Images On] Money & Markets Daily: The 5 It's impossible to keep up with everything going on in financial markets and the economy these days. That's where The 5, a new feature for Money & Markets Daily, comes in… Let's start your week off right by exploring the most significant trends and opportunities you need to know now. The Fed Keeps Truckin’ Along If you were in the “interest rate cuts are coming early in 2024” crowd, you’re sorely disappointed. Last week, the Federal Reserve continued its “higher for longer” stance by keeping its benchmark fed funds rate level — even though recent Consumer Price Index data showed inflation was cooling a bit. [Turn Your Images On] For reference, [Adam]( and [Matt]( have stated on the record to expect “higher for longer” interest rates (and the Fed agrees … sort of). Rather than focus on Fed Chair Jerome Powell’s riveting press conference after last week’s Federal Open Market Committee meeting, Wall Street looked at one thing: the “dot-plot.” This graph shows how the 19 members of the committee see Fed fund rates playing out over the long term: [Turn Your Images On] Source: [Federal Reserve.]( According to the latest projections, which look more like a game of “Connect Four,” seven committee members projected just one rate cut happening in 2024. The other four don’t see any occurring at all. The market was mixed after the release of the “dot plot” on Wednesday, with the S&P 500 (+0.9%) and the Nasdaq (+1.5%) closing up after the announcement. The Dow closed 0.1% lower. Investors slowed their roll to close out the week, with broader indexes closing slightly lower on Friday afternoon. The takeaway? In a normal world, last week's Fed announcement would have held the market flat, considering how much Wall Street bet on multiple rate cuts by the end of the year. But this world is far from the normal… Investors are looking for any silver lining to keep pushing the market higher. And hopes for lower rates soon are enough … for the time being. --------------------------------------------------------------- [Turn Your Images On]( From our Partners at Banyan Hill Publishing. [Is this proof that cryptos are working as intended?]( After a series of banking collapses hit mainstream media, the surge in bitcoin's (BTC) price has raised eyebrows. In fact, many are recognizing BTC as one solution with its 70% growth rate seen so far this year; yet another crypto could have much more potential and disrupt global finance within our lifetime! With investments already pouring in from PayPal and Square plus Mark Cuban and billionaires Elon Musk and Ray Dalio on board too ... there may be serious opportunities out there today if you know where to look — [learn how you can get started with only $20 here now before it's too late!]( --------------------------------------------------------------- The Era of the Stock Split There are two types of stock splits: a forward stock split and a reverse stock split. A forward stock split takes one share and breaks it into many equal parts … with the goal of making the stock more affordable. A reverse stock split takes one share and increases its value … with the intent of meeting listing standards for U.S. stock exchanges. Last week, Broadcom Inc. (Nasdaq: AVGO) announced a 10-for-1 forward stock split… essentially turning one share into 10. Before the split, the stock was priced at around $1,500 per share, so shares would be valued at $150. As a result of the announcement (and a strong quarterly report), shares of AVGO jumped nearly 14% on Thursday: [Turn Your Images On] Nine large-cap stock splits were announced in all of 2023, and we've already surpassed that number in 2024 (AVGO was the tenth)! Individual stock splits have little bearing on the overall performance of the broader market. However, they do suggest more confidence for forward-splitting companies in the months and years ahead. Earnings to Watch: Kroger Co. (NYSE: KR) Consumer sentiment in the U.S. fell to an unexpected seven-month low in early June, according to the latest report from the University of Michigan. Analysts expected the index to increase from 69.1 to 72, but it reversed course and dropped to 65.6. It's not cause for immediate concern, but it shows that American consumers are tightening their purse strings. If you're looking for more insights into the state of the economy, watch out for Kroger Co.'s (NYSE: KR) earnings, which are scheduled to drop on Thursday before the market opens. If anyone has a finger on the pulse of the everyday economy, it's a massive grocery chain like Kroger. And weak earnings could point to trouble ahead. KR stock currently rates "Strong Bullish" in our Green Zone Power Ratings system. We'll see if that changes after Thursday… [Turn Your Images On]( --------------------------------------------------------------- [Turn Your Images On]( [The Next Big Leap in AI: "IMPERIUM"]( Bill Gates, Jeff Bezos and Mark Zuckerberg are pouring millions into it. (Gates even tweeted it’s “one of the most powerful technologies of the 21st century!”) And you can invest in this new technology, which we call Imperium, right alongside them … starting with just $10. [Find out more.]( --------------------------------------------------------------- Get Paid for Getting It Wrong There’s an old joke that weather forecasting is the only job where you can get paid a good salary and still be wrong most of the time. We can add corporate CEO to that list. Tesla Inc. (Nasdaq: TSLA) shareholders approved a massive $56 billion pay package for CEO Elon Musk (despite a Delaware court ruling the package was unconstitutional). This comes amid issues with the accelerator pedal forcing a short delivery shutdown of Tesla’s new Cybertruck, a scaleback in the company’s workforce, and Tesla’s slipping grip on the global EV market share (as Matt pointed out in his [recent examination of TSLA](. See, you can get stuff wrong all the time and still make a ton of money doing it! AI's Biggest Need It's impossible to escape AI talk in 2024. But that's not necessarily a bad thing considering the tear some of these stocks have gone on. If you're looking for recommendations beyond NVDA and MSFT, Adam has you covered. There's one thing AI needs a ton of to continue innovating at an impressive clip. And Adam's recommendation within this space is already up more than 40% in just over a month. [Click here to see how you can access his analysis now.]( — Money & Markets Team Check Out More From Money & Markets Daily: - [ARE SPORTS BETTING STOCKS GETTING A POSTSEASON BUMP?]( - [AI STOCK UPDATE AS APPLE TAKES ITS SEAT AT THE TABLE]( - [THE HITS KEEP COMING FOR "BEARISH" TSLA STOCK]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe](