The stock market closed slightly lower on Wednesday as the central bank warns investors against getting confident about the timing of interest rate cuts this year.
Furthermore, retail sales for December posted stronger-than-expected results as it was up 0.6%. Such supported that rate cuts may not be aggressive as data showed resilient consumer.
Overall, S&P 500 and NASDAQ both declined 0.6% to 4,739 and 14,856, respectively.
Tweet of the Day
APOLLO: “.. The record-high $6trn in money market accounts is likely a tailwind to equities, credit, and rates, and ultimately the economy, in particular hiring, housing, and inflation.” [Slok] pic.twitter.com/zrgSWczFJt
— Carl Quintanilla (@carlquintanilla) January 14, 2024
Chart of the Day
Here is the one-year chart of The Trade Desk (TTD) as of December 20, 2023, when the stock was at $75.
The Trade Desk continues to reap rewards from the shift of viewers from cable TV to streaming services (i.e. Connected TVs). The COVID-19 pandemic accelerated the shift to Connected TV, with more people now watching streaming services than traditional TV. In addition, content companies spearheaded the move, with Disney, Paramount, Peacock and Netflix introducing ad supported channels with programmatic advertising. The Trade Desk is growing at twice the rate of the digital ad space, and 4x the US advertising industry. The US ad industry is growing 5% in 2023, with digital ads growing 10%. The Trade Desk is growing revenue faster than 20%.
TTD is a core holding in the Growth Portfolio. David Sharek, Founder of School of Hard Stocks, thinks this company has a bright future as targeted ads become more popular in video.
