Inflation data = just what Wall St wanted to order

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Yesterday’s CPI data delivered the news that Wall Street wanted, sending the S&P 500 to hit a new all-time high for the 23rd time in 2024. The core CPI rose 0.3% from March which finally ended the streak of three straight readings that came in above the expectations. The year-over-year measure cooled at the slowest pace in three years. What’s more, retail sales data came in flat. This indicated that the economy may be slowing down. Both made it more likely for the Federal Reserve to cut interest rates this September — as long as inflation keeps coming down. - “The market likes it,” said Gary Pzegeo at CIBC Private Wealth US. - “The news on core inflation was better than expected. Retail sales also showed some deceleration from the previously hot consumer sector. Taken together, this supports a Fed rate-cut in the fall.” Gary Pzegeo at CIBC Private Wealth US (Photo: CIBC) The current thesis on Wall Street is that we’re headed for a soft landing — moderate growth with cooling inflation. However, the central bank will not act on a single reading. The next few readings will need to show inflation coming down for Fed officials to feel comfortable with cutting rates. The next reading will be out on June 12. Jose Torres at Interactive Brokers warned that investors may be focusing too much on the potential rate cut. Recent economic data signaled some slowdown, so there is a risk of a downturn. He even threw out a possibility of a July cut. - “Investors cheer rate cuts, neglect potential downturn,” said Jose Torres at Interactive Brokers. - “The stagflationary combination points to the first rate cut happening in September — but odds of a July cut are rising as economic activity continues to surprise to the downside.” Until the next inflation data, Wall Street will wait for the next batch of economic data to try and gauge whether the economy can pull off a soft landing, avoiding a downturn. Dominant Brand In A Lucrative Industry Offers A Top Buying Opportunity Today’s Stock Pick: Trex Company, Inc (TREX) Trex offers perhaps the most exciting trend in the home improvement industry. Listen, we’re trying to go green in everything. And wood decks would require a lot of trees, which bucks the trend of sustainability. What’s more, wood decks are painful to maintain. Wood will rot, warp, and splinter. And you’ll need to paint or stain wood seasonally. And eventually, it will fade due to termites and age. Anybody who owns a wood deck will remember these splinters that can pierce your fingers or feet. Trex is leading the revolution of using materials that are 95% recycled and reclaimed, like plastic bags, to create high-quality, attractive decks. In fact, they often look better than wood. And best of all, it requires virtually zero maintenance (except for regular cleaning) and lasts for 25+ years. As a result, consumers are switching to composite decks more than ever. Composite has about 24% of the market share in decking, as of the most recent quarter. And composite continues to take about 2% share from wood every year. Trex CEO Bryan Fairbanks believes that composite would eventually hold about 45-50% of the market share: - “...we estimate composites account for approximately 25% of the total decking market but expect it will reach 45% to 50% in the future.” Each 1% market share would add ~$80 million to annual composite sales. Using the average of 2% growth, the composite market could grow by $160 million each year from taking the market share from wood alone. (Source: Trex) Cost comparison: Wood is cheaper upfront versus composite deck. The cheapest version by Trex costs about two times higher than wood. More premium versions would cost 3x or 4x more. However, the return on investment will break even within three years and the long-term comparison is simply a no-brainer in favor of composite deck. It lasts longer and requires far less maintenance. Lifetime economics of Trex’s middle-tier version would save consumers two times more money than wood deck: (Source: Trex) Best of all, Trex thoroughly dominates this niche in composite decks. The company commands more than 60% of category web traffic through its sites – [trex.com]( and [decks.com](. And it won multiple prestigious awards for top products, brand awareness, sustainability, fastest-growing business, and best mid-size companies. For example, Forbes named Trex as 12th best mid-size company in 2022: And the company is growing two times faster than the remodeling market: (Source: Trex) Sales growth: By now, you have an intuition that Trex’s sales growth is phenomenal, right? Indeed, it is. Sales grew by 12% CAGR from 2019 to 2023: (Source: Trex) Bottom line: The decking industry is going through a massive change, and Trex is at the forefront of this industry. It is known as the “Apple of the composite deck,” where its products are generally accepted as the highest-quality ones in the market. So, grab the high-quality stock for your portfolio. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](