The stock market closed mixed on Monday as investors await the release of slew of corporate earnings release this week.
Overall, S&P 500 was up 0.1% to 4,137, while NASDAQ fell 0.3% to 12,037.
Tweet of the Day
Everyone is a bear these days. Leveraged funds are the most short 10-year Treasuries on record. CFTC data also show the biggest S&P 500 net short position in 12 years. pic.twitter.com/FMiguWE8Xw
— Dani Burger (@daniburgz) April 24, 2023
Chart of the Day
Our chart of the day is the one-year chart of Dollar General (DG) as of April 12, 2023, when the stock was at $216.
Dollar General is the largest discount retailer in the US with 19,104 neighborhood locations in 47 states, as of February 3, 2023. These offer food, snacks, beauty supplies, clothes, housewares, and seasonal items at everyday low prices. Around 20% of its products are priced at $1 or less. DG is evolving from a dollar store to a local Walmart mini-me.
Dollar General reported solid results last quarter, but management slashed profit estimates for the upcoming year, sending the shares lower. Analyst estimates for 2023 are $11.24 this quarter, versus $12.33 a quarter ago.
The reasons for the lower profit outlook of 4% to 6% growth for the year include 3% from higher interest expenses, 4% from lapping a year-ago period which included an extra selling week, theft in the stores, and damaged goods that need markdowns.
DG is a top holding in our Conservative Growth Portfolio.
