🏃‍♂️ Follow the (Boomer) Money

The only generation to increase spending in 2023. 

Happy Wednesday afternoon to everyone on The Street. Here's a snapshot of where markets ended the trading session, plus tomorrow's trade idea delivered to you today.

  • 🟩 | US stocks rose on Wednesday. Tech companies rallied after back-to-back losing sessions on Wall Street, contributing to a roughly 1% rise in the S&P 500 and Nasdaq Composite.

  • 📈 | One Notable Gainer: Shares of Palantir shot up 10% after the company won a $178 million US Army contract focused on artificial intelligence.

  • 📉 | One Notable Decliner: New York Community Bancorp shares took a 42% dive after reports surfaced that the bank was looking for cash from outside investors to shore up its balance sheet. Then things took a twist: the bank announced a $1 billion raise that caused shares to rebound to +7%, and trading was halted.

  • 🏃‍♂️ | Tomorrow's Trade: Follow the (Boomer) Money. Scroll down for more.

S&P 500 Heatmap. Credit: Finviz

All stocks on US exchanges. Credit: Finviz

Global ADR snapshot. Credit: Finviz

MARKET MOVERS

CRWD (+11%) Crowdstrike saw a massive surge after the cybersecurity company released Q4 results that beat revenue and profit expectations (YF)

JWN (-16%) Nordstrom shares fell sharply due to a disappointing fiscal 2024 outlook that predicted a 3% sales decline in its banner stores (Investopedia)

AAPL (-1%) Apple stock is down for the 6th straight day as China iPhone sales drop and Huawei sales jump by 64% (BBC)

NVDA (+3%) Nividia capitalized on today’s market rebound after showing resilience to yesterday’s tech sector selloff (Barron’s)

FL (-29%) Foot Locker shares plunged after reporting a holiday-quarter loss and delaying its profitability goal by two years (CNBC)

POWERED BY FINANCE BUZZ

Feeling lazy but still want to earn some extra cash? We've done our research and found some unusual (but legit) ways that people can stack their bank accounts without having to leave their house. Some will help you save. Others will help you pad your wallet right away.

If your bank account could use a boost but you don't want to start a second job, then these could be right for you.

OVERHEARD ON THE STREET

CNBC: In prepared remarks for his appearance on Capitol Hill, Jerome Powell reinforced his position that the Fed is not ready to start cutting interest rates.

Reuters: The SEC approved new climate disclosure rules that will require public companies to disclose climate-related risks to their physical assets.

Barron’s: OpenAI refutes Elon Musk’s lawsuit and accusations of betraying its original mission, stating it would push to have them dismissed in court.

WSJ: A report from Fitch Ratings shows that US home prices were 11.1% overvalued in the third quarter of 2023 on a population-weighted average basis.

YF: The Biden administration set an ambitious goal for the US to produce 20% of the world’s most advanced semiconductor chips by the end of the decade.

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TOMORROW’S TRADE IDEA, TODAY

Homer Simpson Lol GIF by Demic

An Aging Society

Boomers are getting older.

According to David Neuhauser of Livermore Partners, we are living in a “boomer renaissance.” This era could mean significant gains in certain market sectors where Boomers spend their cash. 

The generation accounts for around 40% of all domestic consumption, more than any other demographic, according to a Bank of America study.

Health and Travel

Tourism, healthcare, and biotech are sectors that might experience the benefits of this renaissance. 

Neuhauser keys in on weight-loss drugs and travel companies. He expects healthcare stock Eli Lilly (LLY) and cruise line Carnival (CCL) to benefit.

Boomers’ tendency to spend on healthcare extends beyond big pharma to consumer products manufacturers like Procter & Gamble (PG).

Money to Spend

According to Neuhauser, Boomers are the only age group that owns both significant assets and low fixed-rate mortgages. Their disposable income is evidenced by the fact that they were the only generation to increase spending in 2023. 

Darden Restaurants (DRI), the parent company of restaurants like Olive Garden and LongHorn Steakhouse, could benefit from Boomer’s preference for sit-down restaurants. 

Boomers still have a lot of spending to do before the Great Wealth Transfer happens. If Neuhauser is correct, investors could benefit from their spending with these stocks.

Which stock do you think will benefit the most from Boomer’s spending?

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POWERED BY FINANCE BUZZ

Feeling lazy but still want to earn some extra cash? We've done our research and found some unusual (but legit) ways that people can stack their bank accounts without having to leave their house. Some will help you save. Others will help you pad your wallet right away.

If your bank account could use a boost but you don't want to start a second job, then these could be right for you.

ON OUR RADAR

CNBC: The national debt is rising by $1 trillion about every 100 days and currently sits at nearly $34.4 trillion.

Bloomberg: The Trump Organization is teaming up with a Saudi developer on Trump Villas, a $200 million luxury housing development in Oman’s capital.

WSJ: The New York AG is suing JBS USA, the world’s largest beef producer, for alleged misrepresentation of carbon emissions.

Bloomberg: On Tuesday, Elon Musk sent an email to Tesla employees urging them to vote for a new district attorney in Austin who will “actually prosecute crimes.”

Barron’s: After another great week for stocks, Bank of America is getting more bullish, lifting its year-end target for the S&P 500 from $5,000 to $5,400.

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