The stock market jumped on Wednesday as the Federal Reserve kept interest rates steady in the 5.25% to 5.5% range. In addition, the central bank also forecasts three rate cuts in 2024.
Overall, S&P 500 and NASDAQ accelerated 1.4% to 4,707 and 14,734, respectively.
Tweet of the Day
NOVEMBER: Lennar was offering a "fixed [mortgage] rate of 5.75%" in Colorado
DECEMBER: Lennar presently offers a "fixed [mortgage] rate of 4.75%" in Colorado
Lennar is a homebuilder ranked No. 119 on the Fortune 500 pic.twitter.com/F04EiyIdHT
— Lance Lambert (@NewsLambert) December 12, 2023
Chart of the Day
Here is the ten-year chart of Starbucks (SBUX) as of November 29, 2023, when the stock was at $100.
Starbucks seems to already be on every corner. Well, at least in every neighborhood, and yet management still sees profit growth of 15% to 20% this year. David Sharek, Founder of School of Hard Stocks, thinks that’s remarkable as the market seem saturated. How are they doing it? By getting more out of each store.
North American same-store sales increased 8% last quarter. In addition, Starbucks opened another 816 stores during the quarter. The company was also more efficient with Operating Margin up to 18.2% from 15.1% a year-ago. All-in-all, Starbucks delivered 31% profit growth on 11% revenue growth last quarter.
SBUX is part of the Conservative Growth Portfolio. The stock is poised to go on a nice run higher.
