Stocks Gain to Start Week of Inflation Data

The stock market grew on Monday to start a week of key inflation data, which will determine the next move of the Federal Reserve on its rate hiking campaign.

Overall, S&P 500 was up 0.7% to 4,487, while NASDAQ rose 1.1% to 13,918.

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Here is the ten-year chart of Pool Corp (POOL) as of August 31, 2023, when the stock was at $366.

Pool Corp is the world’s largest wholesale distributor of swimming pools and related outdoor living products, with 420 sales centers in North America, Europe, and Australia as of December 31, 2022. The company is the only national wholesale pool product distributor in the U.S. It is also one of the leading distributors of irrigation and landscape products in the U.S

Pool Corp’s sales and profits declined last quarter as the company lapped record results in the year-ago period. Last quarter’s profits declined 23% as sales decreased by 10%. But that was the 3rd best profit quarter ever and 2nd highest revenue quarter.

COVID-19 was a boost for Pool Corp’s operating results as people stayed at home and made improvements to it. Now, the company is getting back to delivering more normal results. High interest rates are hurting lower-priced pool sales as these are more dependent on financing. Also, cooler weather caused homeowners to delay opening their pools, which in turn caused chemical sales to be impacted negatively as warmer weather. Headwinds include pool weather to start the pool season, high interest rates, and end of COVID comparisons.

POOL is part of the Conservative Growth Portfolio.

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