The stock market closed mixed on Monday, with NVIDIA (NVDA) dragging NASDAQ to start the final week of June. Meanwhile, May’s personal consumption expenditure data, the Federal Reserve’s preferred inflation data, is set to be released on Friday.
Overall, S&P 500 declined 0.3% to 5,448, while NASDAQ dropped 1.1% to 17,497.
Tweet of the Day
Elon Musk teaching in his school, Ad Astra.
— DogeDesigner (@cb_doge) June 23, 2024
Chart of the Day
Here is the ten-year chart of Grainger (GWW) as of May 21, 2024, when the stock was at $957.
Investors should get more accustomed to Grainger delivering slower profit growth than in previous years. The maintenance supply company had been rolling in the profits in the past three years, as earnings grew 25%, 25% and 24% from 2021 to 2023. That growth was exceptional for a Blue Chip stock that David Sharek, Founder of School of Hard Stocks, thought of as a 10% to 12% grower.
Last quater, the company delivered flat profit on just 4% revenue growth. Management said that demand environment is slow but steady. The performance was just as expected, as there were tough comparisons to the year-ago period when profits jumped 36%. Moving forward, David Sharek expects this company to deliver 12% to 15% profit growth.
GWW is part of our Conservative Growth Portfolio.
