The stock market dropped on Thursday, as investors braced for a key February jobs report that could impact the direction of interest rates. In addition, banking fears rise as SVB Financial had experienced a collapse in it shares.
Overall, S&P 500 declined 1.9% to 3,918, while NASDAQ fell 2.1% to 11,338.
This market is showing signs of going back into the Bear mode.
January’s CPI of 0.5% was an unwelcome surprise. November was only 0.2% and December was 0.1%. Those were good numbers showing slowing inflation.
Given the high inflation data in January, the Fed is now expected to continue to raise interest rates, which will hurt the American consumer with higher credit card rates.
Tweet of the Day
Some takeaways from the Mongo earnings call.
TLDR – things are still getting worse, not better. Guiding to a sequential decline in Atlas revenue in Q1, and guiding to 16% growth for the full year (assuming no improvements to consumption headwinds)
More below $MDB
— Jamin Ball (@jaminball) March 9, 2023
Chart of the Day
Here is the ten-year chart of Paycom Software (PAYC) as of February 22, 2023, when the stock was at $299.
Paycom Software offers a complete cloud-based HR program for small and medium sizes businesses (50-10,000 employees) that human resource personnel can log into online to process payroll and benefits for employees.
PAYC is one of the best software stocks of our time. But many investors are unaware of Paycom’s greatness. The company continues to put out 30% revenue growth while profits grow at an even faster rate — 56% last quarter alone. In fact, the company has delivered four 30% or more revenue growth quarters in a row. 2022 revenue growth was also 30%. And we are currently in a recessionary period where software spending is being cut back.
This stock reminds me of Microsoft in the 1990s.
– David Sharek, Founder of The School of Hard Stocks
PAYC is part of the Growth Portfolio and Aggressive Growth Portfolio. This company has the ability to grow sales, profits, and perhaps its stock 25% a year.