The stock market closed higher on Thursday as investors came back in buying tech stocks, despite hawkish comments from the Federal Reserve.
On Wednesday, the central bank’s Chair Jerome Powell said more rate hikes are likely to come this year to mitigate the impact of inflation. Officials think that there could be two more quarter-percentage point increases this year. It should be noted that the Fed kept rates steady at last week’s policy meeting after 10 consecutive hikes.
Overall, S&P 500 rose 0.4% to 4,382, while NASDAQ grew 1.0% to 13,631.
Tweet of the Day
Bullish signal: Breadth is finally starting to confirm what the headline indices have been doing. The percentage of stocks above their 50-day moving average is now at a respectable 71%. pic.twitter.com/SXHanTLfl6
— Jurrien Timmer (@TimmerFidelity) June 21, 2023
Chart of the Day
Here is the one-year chart of Datadog (DDOG) as of June 7, 2023, when the stock was at $94.
Datadog seems to be the best company in data monitoring and analysis. It helps organization monitor their websites and application. Its dashboards allow users to customize their views and see data by different hosts or devices. Datadog is also approved on the FedRamp marketplace, to do work for U.S. government departments and agencies.
Datadog looks to be finally trending upwards as it attained stock price levels it had over a year ago. This trend coincides with the company’s acquisition of Codiga, a real-time error-detecting tool for programmers, and the launching of two new products: Data Streams Monitoring and Application Vulnerability Management.
The company continued to turn in a reasonable profit, which grew 17% last quarter (year-over-year) while revenue rose 33%. However, that was slowing growth from 2QtrsAgo when profits increased 30% as sales rose 44%. Furthermore, 3QtrsAgo profit growth was 77% as revenue jumped 61%. On the bright side, management said customer usage improved from the prior quarter.
DDOG is on the radar for the Growth Portfolio and Aggressive Growth Portfolio.
