The stock market was down on Wednesday as investors looked ahead of a pivotal inflation report that may indicate the movement of the interest rate cuts this year.
Overall, S&P 500 declined 0.2% to 5,070, while NASDAQ fell 0.6% to 15,948.
Tweet of the Day
Hedge funds are dumping tech as retail buys it up 👀
Chart: Goldman Sachs pic.twitter.com/C6GnZEn9HY
— Markets & Mayhem (@Mayhem4Markets) February 26, 2024
Chart of the Day
Here is the ten-year chart of Tractor Supply (TSCO) as of February 13, 2024, when the stock was at $233.
Last quarter, Tractor Supply delivered weak profit growth at -6%. It blamed unfavorable weather conditions, rising interest rates, and inflation which made consumers more discerning with expenses. Sales growth was -9% as same-store sales were -4%, the average ticket was -2%, and average transaction count was -3%.
Now, analysts expect TSCO’s profit growth at 4%, 2%, -4% and 4% in the succeeding quarters. That’s not very good. David Sharek, Founder of School of Hard Stocks, blames the profit slowdown on recent inflation in the past few years that helped boost pet food prices, as well as TSCO’s profits. Now, prices have simmered down while the consumer is being tight with their spending.
TCSO used to be part of the Conservative Growth Portfolio. David Sharek recently sold the shares as profit growth is weak and he expects the stock to stick around its price for the next year or so.
