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- 🪦 Tax Season Is Here. These Companies Could Benefit
🪦 Tax Season Is Here. These Companies Could Benefit
Plus, it was the second-highest number of layoffs for the month of January since 2009.
Happy Thursday 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 moved higher Thursday. Wall Street was trying to claw back some ground after the Fed sell-off. The Dow specifically jumped 360 points.
📈 | One Notable Gainer: Corteva’s shares popped over 18% after the company reported its fourth-quarter financial results and announced a $1 billion repurchase plan.
📉 | One Notable Decliner: Peloton's shares dropped over 24% after a dim forecast for current quarter and full-year sales. The company is now projecting revenue between $700 million and $725 million, below the $754 million analysts anticipated.
🪦 | Tomorrow's Trade: Tax Season Is Here. These Companies Could Benefit. Scroll down for more.
YESTERDAY’S POLL RESULTS
🟩🟩🟩🟩🟩🟩 🐂 Bullish
🟨🟨⬜️⬜️⬜️⬜️ 🐻 Bearish
S&P 500 Heatmap. Credit: Finviz
All stocks on US exchanges. Credit: Finviz
Global ADR snapshot. Credit: Finviz
MARKET MOVERS
NYCB: New York Community Bank's shares dropped 11% (after a 37% fall yesterday) due to a Q4 loss and a dividend cut.
NSC: Norfolk Southern's stock rose 9% following The Wall Street Journal's revelation that an investor consortium spearheaded by Ancora is aiming to initiate changes within the railroad's leadership.
WOLF: Wolfspeed's stock fell 13.6% due to weak third-quarter guidance, forecasting revenue between $185 million and $215 million, below the $224 million analysts' consensus.
MRK: Merck's shares rose 4.6% after the company's fourth-quarter revenue and adjusted earnings surpassed estimates, driven by robust demand for its cancer drug Keytruda and HPV vaccine Gardasil.
MXL: MaxLinear's shares dropped 11% following soft guidance from the computer hardware provider, with expected Q1 revenue between $85 million and $105 million, below analysts' expectations of $121.8 million.
TOGETHER WITH VANTAGEPOINT
As February overflows with interest rate headlines, here’s a fresh perspective for you: Learn to trade like interest rates don’t matter.
Artificial Intelligence is the key. Imagine a strategy that empowers you to navigate the markets with precision, regardless of interest rate fluctuations.
If you’ve never decoded market trends with A.I., this is your chance.
You’ll learn how to spot opportunities, and make informed decisions, detaching from the interest rate speculation frenzy.
It’s not just a tool; it’s your guiding light through the murky waters of market trends, refining your trading skills.
Best of all, anybody can learn how to do it.
It doesn’t matter if you’re retired… or planning to retire...
It doesn’t matter if you don’t have millions of dollars to invest…
OVERHEARD ON THE STREET
CNBC: Meta announced its first-ever dividend payout today.
Bloomberg: Assets held by money-market funds surpassed $6 trillion for the first time.
Fox Business: January job cuts jumped 136% from the previous month. It was the second-highest number of layoffs for the month of January since 2009.
Bloomberg: This was the busiest January for municipal bond sales in almost a decade. Issuers sold $31.8 billion in municipal bonds, the largest amount since January of 2017.
Axios: Elon Musk polled nearly 171 million followers about moving Tesla's incorporation to Texas. It saw an 87.1% majority of over 1.1 million voters favoring the move.
YF: Ferrari's stock surged due to an optimistic 2024 profit forecast amid strong luxury demand. Adding to the buzz, reports indicate F1 star Lewis Hamilton may make a surprising move to Ferrari from Mercedes.
Reuters: US traders are expecting the first rate cut in May, with a total of 144 basis points of easing anticipated by the end of the year.
TOMORROW’S TRADE IDEA, TODAY
Tax Season Is Here
Tax season is here — ugh. In case you missed it, Monday was the first day the IRS started accepting tax returns for 2023. It’s not all bad, though.
Last year, the IRS received nearly 137 million tax returns. In return, Uncle Sam shelled out roughly $237 billion to Americans.
Historically, some companies have benefited from the spending frenzy after Americans receive their tax-season boost.
Good News for Lower-Income Filers
According to Wolfe Research, this year's tax returns should be slightly higher than in recent years. The IRS raised income limits within its tax brackets for 2023. It also increased the standard deduction by almost 7% to keep pace with inflation.
Congress also has a bill in the works to expand the Child Tax Credit, potentially increasing low-income Americans’ refunds.
Low-income investors are also less likely to have large capital gains. Ipso-facto, they won’t have to pay capital-gains taxes.
This is all to say, that on a relative basis within income brackets, some people could have more money to spend, and a few outlets could stand to benefit.
Tax Return Spending
According to Wolfe Research, several stocks could benefit from increased spending power in the hands of lower-income Americans.
The winners include Walmart (WMT), Dollar General (DG), Advance Auto Parts (AAP), and Cracker Barrel (CBRL).
Lower 2022 tax refunds and March’s SNAP reductions made for a rough 2023 for these retailers. Executives are hopeful that tax season could give them a boost this year.
Which stock will benefit the most from tax refund season? |
TOGETHER WITH VANTAGEPOINT
As February overflows with interest rate headlines, here’s a fresh perspective for you: Learn to trade like interest rates don’t matter.
Artificial Intelligence is the key. Imagine a strategy that empowers you to navigate the markets with precision, regardless of interest rate fluctuations.
If you’ve never decoded market trends with A.I., this is your chance.
You’ll learn how to spot opportunities, and make informed decisions, detaching from the interest rate speculation frenzy.
It’s not just a tool; it’s your guiding light through the murky waters of market trends, refining your trading skills.
Best of all, anybody can learn how to do it.
It doesn’t matter if you’re retired… or planning to retire...
It doesn’t matter if you don’t have millions of dollars to invest…
ON OUR RADAR
FOX Business: Freddie Mac's recent survey revealed a decrease in the average 30-year fixed mortgage rate to 6.63% this week, down from 6.69% last week, yet significantly higher than last year's 6.09%.
CRB: Construction spending increased 0.9% in December.
Bloomberg: OPEC+ will review extending current oil output cuts, including a 900,000-barrel daily curb by seven members plus Saudi Arabia's 1 million-barrel reduction, in early March.
ZH: In the last week of January, institutional investors withdrew from US stocks at an unprecedented rate, indicating a potential peak in the market for the near term.
NYT: In December, at-home food prices rose by just over 1%, per the Labor Department
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