Stocks ended higher as weak U.S. economic news increased expectations of a rate cut by the Federal Reserve (Fed). The S&P 500, Nasdaq, and Dow Jones indices all closed in positive territory. The positive market sentiment was driven by disappointing economic data, including a decline in retail sales and industrial production. Investors are now anticipating a potential interest rate cut by the Federal Reserve to stimulate the economy. FedEx's disappointing earnings report also contributed to the market's expectation of a rate cut. The S&P 500 E-Mini, Nasdaq 100 E-Mini, and Dow Futures E-Mini all slipped as investors awaited further U.S. economic data and the release of FedEx's results. Google's stock, GOOGL, saw unusual options activity. Three low-float undervalued stocks were identified as potential buys heading into 2024. General Motors' stock is speculated to reach $95 next year. Overall, weak economic news and disappointing earnings reports have bolstered expectations of a rate cut by the Federal Reserve, leading to a positive market close.
The U.S. dollar has experienced a decline as weak economic news in the United States has increased expectations of a rate cut by the Federal Reserve (Fed). This dovish pivot from the Fed aligns with market expectations and has been met with enthusiasm from investors, leading to risk-on flows. The decline in the U.S. dollar comes as investors await U.S. economic data and are disappointed by FedEx's results. The market is also seeing large unusual options activity in Google's stock. The November Retail Sales report showed a 4.1% year-on-year increase, indicating a healthy job market. Additionally, there are three low-float undervalued stocks that are recommended for purchase heading into 2024, and General Motors stock is predicted to reach $95 next year. It is important to note that trading foreign exchange carries a high level of risk and may not be suitable for all investors. The U.S. dollar's decline reflects the weak economic news and increased expectations of a rate cut by the Fed, which has led to a dovish pivot and risk-on flows in the market. The decline in the dollar comes as investors await U.S. economic data and are disappointed by FedEx's results. The market is also seeing large unusual options activity in Google's stock. Overall, weak economic news and disappointing earnings reports have bolstered expectations of a rate cut by the Federal Reserve, leading to a positive market close.
In other news, The Globe and Mail published an article discussing eight undervalued industrial stocks that could strengthen a portfolio. The S&P 500 retreated after comments from U.S. Federal Reserve chair Jerome Powell that more evidence would be needed to lower interest rates. However, several economic indicators point to a strong U.S. economy. The OECD forecasts that the Fed could begin cutting rates in Q2 2024. The article provides a list of U.S.-listed industrial stocks with strong forecast future growth rates, including Danaos Corp and Delta Air Lines Inc. Danaos Corp is one of the largest independent owners of modern containerships and is investing in new vessels to modernize its fleet. Delta Air Lines Inc operates more than 4,000 flights daily and prioritizes free cash flow and debt reduction. Investors are advised to do their own research before trading in any of the securities shown.
Additionally, Seeking Alpha reports that PostNL stock has faced challenges and has been downgraded from Sell to Hold. The company's Q1 results showed declining revenues and EBIT, with challenges in the mail segment. The Mail segment remains pressured with revenues declining 7.1% to €324 million and normalized EBIT dropped from a €8 million profit to a €5 million decline driven by a 12.5% reduction in mail volumes. The outlook for 2024 is not looking great, with stable Normalized EBIT, lower comprehensive income, and lower free cash flow. PostNL is seeing major challenges in its Mail segment which it aims to address by delivering mails within three days rather than the current mandatory one day. The stock price has some upside, but given the risks involved for a business the scale of PostNL and the persistent challenges faced, the stock is not attractive to buy.
Overall, weak economic news and disappointing earnings reports have increased expectations of a rate cut by the Federal Reserve, leading to a positive market close. In addition, there are several undervalued stocks, including Alibaba Group, UPS, and AstraZeneca, that are near their 52-week lows and are considered underrated buys.