On today’s episode of Free Lunch, Ryan McQueeney discusses new macroeconomic data and explains why Wall Street was disappointed with Spotify’s and Wayfair’s earnings reports. Later, he chats with Dave Bartosiak about Apple’s upcoming report and tomorrow’s fresh read on unemployment and wages.
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Free Lunch is presented by Zacks Investment Research. It is streamed live, four times per week, and features breaking news and analysis from Zacks strategists. Free Lunch is available on YouTube, Facebook Live, Twitter, Ustream, and more.
Stocks were on pace to record their third consecutive day of gains on Thursday, thanks in large part to strong macroeconomic data and earnings results. Initial Jobless Claims last week were down to 214k, well within the historically robust range we have seen recently, while Labor Costs data showed that wages were ticking higher amid tight employment conditions.
However, at least a few trendy stocks were down in morning trading after disappointing earnings announcements. Notably, Spotify (
SPOT - Free Report) posted modest subscriber growth and narrowed its expectations for full-year monthly listeners slightly, sending its shares sharply lower. On a similar note, online furniture seller Wayfair ( W - Free Report) reported wider-than-expected quarterly losses and saw its stock gap down in morning trading.
On the first half of today’s show, Ryan recaps these macroeconomic and earnings headlines. Make sure to check it out for all the key facts!
Later, the host checks in with Zacks Strategist Dave Bartosiak to discuss Apple (
AAPL - Free Report) , jobs, and buying the dip.
Dave predicts that Apple will post impressive earnings results tonight, although he said that Wall Street’s reaction will be almost entirely dependent on the iPhone maker’s guidance. Dave has confidence that a strong economy will inspire a great holiday quarter for Apple, but he did suggest that investors using Apple as a lynchpin for the broader market does present some risk here.
Dave also explains why investors should keep a close eye on the upcoming jobs report. The risk with these numbers, according to Dave, is that wage-based inflation will force the Fed to grow even more hawkish. This would create more short-term volatility for stocks, as we saw this month. However, as Dave explains, higher wages should be a long-term buoy for stocks.
Finally, Dave concludes by giving investors a strategy for navigating a market rebound. Focus on companies you know, he said. Are you still playing Fortnite or Red Dead Redemption? Well check out Turtle Beach (
HEAR - Free Report) and Nvidia ( NVDA - Free Report) , two former momentum stocks that have been beaten down recently.
Make sure to watch today’s episode to hear more!
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