The S&P 500 Hits A New Record High

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Consumer confidence was high while inflation expectations were lower. In other words, consumers feel confident about the economy (potentially sustaining the demand) while they expect lower inflation (which can slow down price gains). So, it looks and feels like a soft landing. - “Much more good than bad news in the underlying economic data as we enter 2024, with inflation cooling,” said Art Hogan at B Riley Wealth. “We’re seeing a plausible path to inflation continuing to ease gradually, an end to Fed rate hikes, and a re-acceleration of economic growth in the back half of 2024.” As a result, the S&P 500 jumped 1.2% yesterday to hit a new all-time high. Historically, the index rose 13 out of 14 times when it hit new highs. Strategas’s Nicholas Bohnsack believes the momentum will lead stocks to go higher unless consumers tighten their wallets or the labor market weakens. - “The equity market’s path of least resistance seems to be higher until the consumer pulls back and/or the labor market buckles,” said Nicholas Bohnsack at Strategas. - “In the absence of a ‘soft patch’ we remain positive on the equity market having increased exposure to stocks into year-end but suspicious the same mix that led the market last year, i.e., the ‘Magnificent 7’ will continue to carry the day.” Nicholas Bohnsack at Strategas (Photo: Strategas) Where are investors pouring their money into? Tech stocks, of course. Hedge funds now hold the highest level of net-long Nasdaq 100 futures in almost 7 years, according to Societe Generale’s data. Now it is going to be on earnings reports to see if Big Tech can justify the rising multiples. - “Based on the recent price action, Nasdaq 100 traders don’t seem particularly concerned about the upcoming earnings reports,” said Matthew Weller at Forex.com and City Index. But “the only thing that could drag down the Nasdaq 100 may be poor earnings results.” Mohamed El-Erian, the former CEO of PIMCO and now-president of Queens’ College, thinks investors are overpricing the number of rate cuts because they don’t fully understand how stubborn inflation can be. - “I do think that we get to the pivot, but relative to what the market expects, it won’t be as fast or as deep,” said El-Erian, president of Queens’ College, Cambridge, and a Bloomberg Opinion columnist. Next key catalysts will be next week’s earnings reports and new inflation data to see whether corporations can maintain earnings growth while inflation keeps falling. Want To Jump Into The Megatrend of Data? Buy This Stock Immediately Today’s Stock Pick: Pure Storage ([PSTG]( Data is the modern linchpin of business transformation. Companies who know how to use data will gain an enormous competitive advantage over others who are asleep (or too lazy to catch up). But there’s a problem. Data needs a home. A huge one. If you have relatively small data, you can store it in the cloud. But what if you have a massive trove of data that could be mined for artificial intelligence technology? For example, car manufacturers are trying to crack self-driving. They would install radars on cars and gather all of these videos for data mining. These take up a lot of storage. Enter Pure Storage. It offers hardware data storage for corporations. It is much like personal data hardware you may use to back up your computer files. Below is some of Pure Storage’s hardware offerings: (Source: Pure Storage) Pure Storage’s memory chips are high-end and more expensive than traditional platter-based hard disk drives. But they’re smaller, faster, more power-efficient, and more durable. For example, its product called FlashBlade S allows companies to run massive file and object workloads – such as computational analytics and AI, image search and recognition, electronic design automation, media special effects, high-performance computing and data protection. More importantly, it can be continuously upgraded without disruption. - “One customer who installed Pure to replace a competitor's all-flash product reported a tenfold improvement in performance, while also significantly reducing their labor and energy expenses,” said CEO Charlie Giancarlo. Beyond its hardware business, it offers cloud and artificial intelligence services to help companies save storage space and properly configure their devices. The storage-as-a-service blends on-premise data storage (hardware) with cloud services for those who want to store data seamlessly between hardware and the cloud. (Source: Pure Storage) A massive number of customers: Pure Storage holds more than 12,000 global customers, including about 60% of Fortune 500 companies. Clearly, this validates Pure Storage as a must-have product for modern corporations. (Source: Pure Storage) It has been named a leader in storage for eight straight years by Gartner, saying that customers choose Pure Storage for its hybrid solutions of cloud and hardware approach, simplicity for installation, and pay-as-you-go pricing model. Gigantic market: Nearly every corporation will need to use data, right? It’s inevitable. Therefore, the market is massive for Pure Storage. For now, it puts the Total Addressable Market at $60 billion, which would represent only 4% of its current revenue. And its revenue growth could be hitting an inflection point. Pure Storage is putting more focus on enterprise clients, and the top 10 customers spend more than $100 million annually. The unstoppable trend of digital transformation drove huge annual revenue growth for Pure Storage in FY 2023: (Source: Pure Storage) Bottom line: Pure Storage operates in perhaps the most important megatrend in many sectors – data. Its hardware is consistently ranked as number one in the industry, enabling corporations to run large-scale data projects. While its focus is on data storage, the product line expansion is nearly endless [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](