Quilland Arrow Press - Promo

Must-Read News: Fed Meeting Recap, Apple Earnings, and Etsy's Fall




On Wednesday at 2 p.m., Fed Chair Jerome Powell said that the central bank is not likely to raise rates next. Unusually, the announcement lifted stock markets before selling accelerated minutes before trading closed.

The Fed’s decision to hold rates at 5.25% to 5.5% is bad news for REIT and dividend income investors. They could equally hold money market instruments to earn over 5% from interest income without risk. Fortunately, REITs like American Tower (AMT), Crown Castle (CCI), and Iron Mountain (IRM) did not drop. Even Realty Income (O) rose on the day. W.P. Carey (WPC) fell slightly.

In the technology sector, Apple (AAPL), one of the Magnificent Seven, will post quarterly results. Markets are bracing for a severe drop in revenue from China. The country promoted nationalistic sales of Huawei and Xiaomi phones.

Skyworks (SWKS), which posted a weak quarter, dropped by 15.28% on Wed. It depends heavily on selling chips to Apple at around 65%. It suggests that Apple will report weak iPhone sales tonight.

Retailer Etsy (ETSY) lost 13% in after-hours trade after posting weak Q1/2024 results. GAAP EPS of 48 cents sets an unfavorable valuation for ETSY stock. In Q2, the firm expects gross merchandise sales to fall. For 2024, however, Etsy expects an acceleration in GMS. Consider adding ETSY stock to the watch list, especially if shares fall below $55.



Source link

About The Author

Scroll to Top