The stock market declined on Wednesday as trading resumed a holiday-shortened week. Investors assessed minutes from the Fed meeting on June 13-14, which showed that most officials indicated further interest rate hikes moving forward.
Overall, S&P 500 and NASDAQ both declined 0.2% to 4,447 and 13,792, respectively.
Tweet of the Day
Rents are dropping. 📉
Hardest-hit cities include Austin, Las Vegas, and Phoenix, where rental rates are down -6% over the last year.
Meanwhile – taxes, insurance, and interest costs are up significantly.
Cocktail that could mean forced selling in H2 2023. pic.twitter.com/nKiLmPRW0V
— Nick Gerli (@nickgerli1) July 4, 2023
Chart of the Day
Here is the one-year chart of Starbucks (SBUX) as of June 14, 2023, when the stock was at $101.
Starbucks sells handcrafted coffee, tea, and other beverages and food items through company-operated stores and licensed stores. Around half of its stores are company-operated, with the other half licensed. The company also sells packaged coffee, tea, and ready-to-drink beverages in grocery stores. In Fiscal 2022, Starbucks had around 36,000 stores in operation in 83 countries.
Starbucks delivered solid profit growth last quarter as North America sales lead the way. The company delivered 25% profit growth during the quarter as revenue increased 14%, with same store sales up a solid 11%. North America was the bright spot, with 17% revenue growth on 12% same store sales growth.
Starbucks’ performance is fueled by profitable innovation, which includes innovative beverages like the Pistachio Cream Cold Brew and Oleato. Oleato is Starbucks coffee infused with olive oil. Starbucks Oleato beverages have already reached an audience of 5 billion people, making it one of the top five product launches in terms of brand awareness and excitement in the past five years.
SBUX is part of the Conservative Growth Portfolio. The stock is on a dip, and David Sharek, Founder of School of Hard Stocks, thinks this is a good time to buy.
