The stock market rose on Wednesday as investors looked ahead of the key inflation report that is projected to show inflation further easing. This may signal that Fed’s previous interest rate hikes have already had their intended effects.
Overall, S&P 500 was up 1.3% to 3,970, while NASDAQ increased 1.8% to 10,932.
Tweet of the Day
"I think it's going to be a massive bounce back," says @DivesTech on #tech this year. "We've talked about tech stocks overall [going] up 20% and big tech up above that…Overall tech I believe right now is as under owned as I've seen…going back to 2009 and maybe 2002." pic.twitter.com/KpH6hjcaDR
— CNBCOvertime (@CNBCOvertime) January 10, 2023
Chart of the Day
Our chart of the day is the ten-year chart of Home Depot (HD) as of December 21, 2022, when the stock was at $319.
Home Depot is the world’s largest home improvement retailer, which offers building materials, home improvement products, lawn and garden items, and home improvement installation services.
The company is like a machine in growing its brand without increasing locations. Note that during the past decade, annual profit growth and stock growth were both 18%.
Looking ahead, homebuilder stocks have been breaking out this month as inflation declines. That should lead to lower mortgage rates, more home sales, and more project demand.
HD is part of the Conservative Growth Portfolio.
