Stocks Mixed as Investors Assessed Inflation Data

The stock market closed mixed on Thursday as latest inflation data was lower than expected. Regional banking concerns, however, continued to affect the markets.

Overall, S&P 500 declined 0.2% to 4,131, while NASDAQ increased 0.2% to 12,329.

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Chart of the Day

Our chart of the day is the ten-year chart of Tractor Supply (TSCO) as of May 3, 2023, when the stock was at $243.

Founded in 1938, Tractor Supply is the largest rural retail store chain in America. The company sells livestock feed, farm equipment, seasonal outdoor products and work clothing.

Tractor Supply delivered a poor quarter with flat year-over-year profit growth due to a late spring selling season. The weather was cold much later in the year during 2023. Seasonal, Gift & Toy items made up 21% of sales in 2022. But now that Spring has arrived, management is seeing improved sales trends. Last quarter, sales growth was a decent 9% due to the acquisition of Orscheln Farm & Home, as well as strong sales in edible products like dog food and poultry feeds.

Despite that, Tractor Supply continues to execute well. David Sharek considers this a 10% to 12% grower long-term. With around half of sales being food and related items, there is good certainty in this stock.

TSCO is part of the Conservative Growth Portfolio.

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