The stock market jumped on Tuesday after data showed cooler-than-expected inflation figure for October. Overall inflation was unchanged from September, down from the 0.4% growth recorded last month.
Furthermore, the 10-year Treasury yield dropped 19 basis points to 4.44%.
Overall, S&P 500 was up 1.9% to 4,496, while NASDAQ increased 2.4% to 14,094.
Tweet of the Day
A key reason why $MSFT is winning market share vs $GOOGL and $AMZN in the cloud – it's just cheaper. For example, to rent a Nvidia A100 40GB server in the cloud: pic.twitter.com/9u8xPVk0EN
— Tech Fund (@extremetechfund) November 13, 2023
Chart of the Day
Here is the one-year chart of Tractor Supply (TSCO) as of November 1, 2023, when the stock was at $191.
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 expects continued unfavorable seasonal good sales and reduced consumer spending heading into the end of the year. The company was able to deliver 11% profit growth last quarter, which met analyst estimates. Sales, however, rose just 4% and missed analyst estimates of 7%. Now, analysts predict sales will decline 8% this quarter, while profit growth is estimated to be -7% versus a previous estimate of +2%.
In the earnings call, management blamed poor weather and customers continuing to be discerning with spending. Last quarter, there was extreme heat and drought in Texas with lots of rain in the Northeast. High inflation, higher credit card balances, and the resumption of student loan payments are also holding back sales.
TSCO is part of the Conservative Growth Portfolio.
