On Thursday the stock market saw gains across the board as investor digested good earnings from big tech stocks and and the Federal Reserve saying we aren’t in a recession (but we are).
This was the 2nd strong rally day in a row. It’s obvious Jerome Powell’s words on inflation and the economy yesterday have perked up investors.
That’s dispite the recession news. Today it was announced Gross Domestic Product fell 0.9% in the 2nd qr, which followed a 1.6% in the 1st qtr, and officially put the United States in a recession with two consecutive quarters of negative GDP growth.
Also helping boost stocks: Microsoft (MSFT) and Alphabet (GOOGL) reported earnings last night that were impressive. Today, MSFT was up 3% to $276 as Azur and other cloud services revenue was up 40% during the qtr. GOOGL was up 1% on the day to $114 as Google Search revenue (its biggest division) saw revenue climb a very solid 14%.
Chart of the Day
Our Chart of the day is this ten-year chart of American Express (AXP).
In my first research report on AXP stock in two years, it seems to be like this is a 10% grower long-term. If that’s good enough for you.
When you look at the ten-year chart (below) you can see the stock grew 11% the past decade, while profits grew 8% a year.
Tack on a 1% dividend yield and this is hypothetically a 10% grower.
AXP is a safe stock, but it does have its downturns. With us officially in a recession, this would be a quality name to pick up on a dip.
Tweet of the Day
Wild that Covid was a bigger volume shock for American Express than the GFC pic.twitter.com/mJpOifG3ft
— Marcelo P. Lima (@MarceloPLima) July 28, 2022
