The stock market broke their five week-winning streak on Friday, as indexes ended lower after another hotter-than-expected inflation report. The Producer Price Index (PPI) for January rose 0.3% from the previous month, compared with the 0.1% expectation. Such raised fears that the Federal Reserve may cut interest rates only later this year.
Overall, S&p 500 declined 0.5% to 5,006, while NASDAQ was down 0.8% to 15,776.
Tweet of the Day
I do not think a major market top is being made here. To the contrary, the CPI data could cause a pullback in certain areas of the market, but our long-term models remain bullish with our January 13, 2023 buy signal still intact. Extended stocks are vulnerable, but odds are that… pic.twitter.com/7EYKZhQR8N
— Mark Minervini (@markminervini) February 13, 2024
Chart of the Day
Here is the one-year chart of Starbucks (SBUX) as of February 6, 2024, when the stock was at $96.
Starbucks missed profit and sales estimates last quarter due to weakness in China and boycotts from pro-Israel consumers. Profits grew by 20%, falling short of the estimated 28%, and revenue was 8%, below the predicted 11%.
The company encountered issues on political boycotts when Starbucks Workers Union posted “solidarity with Palestine” on Twitter (now called X). Also, China sales were below expectations but still up 20% year-over-year.
David Sharek, Founder of School of Hard Stocks, thought the quarter was fine. He is not gonna nit-pick it.
SBUX is part of the Conservative Growth Portfolio. The stock is a great value right now. The P/E of 24 is very good. This seems like a good time to buy.
