Stocks Slide After Record Wednesday 👀 | $DJI Breaks 40k First Time Ever 🚀 | Our Top Market Movers Today 📈 | & More!
Thursday the market was not able to break record highs after a softer CPI report and the DJI touching 40,0000 for the first time ever. Let’s take a quick looka t how our indexes performed:
The Dow Jones Industrial finished down 0.1% after passing a new price milestone earlier in todays session
The Nasdaq Composite lost about 0.2%
The S&P closed just below 5300 after passing that level for the first time on Wednesday
Earlier today three Fed Officials came forward and warned of higher-for-longer interest rates while speaking at separate events, which seemed to turn the market sour as news came out.
Our trending tickers today saw some action and let their respective sectors lets take a look at the highlights below:
| Stock saw a 6% run after the retailer poster than expected earnings for their Q1 report. E-commerce division sales gained with company attracting higher income shoppers in the last quarter
| Came out swinging after posting an 86% profit drop last quarter, posted better than expected results this week sending the stock up 7%
| The big box retailer posted better than expected earnings sending shares up on the day and 23% YTD, e-commerce was their strongest division for the month of April.
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Marijuana Reclassification Leads To Green Rally 🎯
Cannabis stocks, including Tilray, Curaleaf, and the AdvisorShares Pure US Cannabis ETF, experienced a significant rally on Thursday. The surge followed the US Department of Justice’s announcement of a proposal to reclassify marijuana from a Schedule I drug to a Schedule III drug. This change would indicate that marijuana has a moderate to low potential for physical and psychological dependence.
The proposal, which cites the Food and Drug Administration’s (FDA) review, states that “no safety concerns were identified in the FDA’s review that would indicate that medical use of marijuana poses unacceptably high safety risks.”
Tilray Brands, Inc. (TLRY) saw a nearly 4% increase in intraday trading, though it still had a 7% decline year-to-date. Curaleaf shares rose nearly 0.4%, putting them up nearly 42% for the year. The AdvisorShares Pure US Cannabis ETF gained 1.8% and is up 40% for the year.
These gains occurred as the benchmark S&P 500 dropped 0.1%. However, several cannabis-related stocks remain significantly below their 5-year highs. Curaleaf is down nearly 66% from its February 2021 high, while Tilray is down nearly 97% from its high from the same month.
Reclassifying marijuana marks a significant step toward aligning state and federal cannabis laws, as the drug is legal in some form in nearly 40 states.
Jamie Dimon Warns Rate Hikes Are Closer Than You Think 🤔
Jamie Dimon, CEO of JPMorgan Chase & Co., has expressed concerns about inflation and its impact on the US economy. In an interview on Bloomberg Television, Dimon stated that significant price pressures, including costs related to the green economy, re-militarization, infrastructure spending, trade disputes, and large fiscal deficits, could mean that interest rates will be higher for longer than many investors anticipate.
Despite the S&P 500 and Nasdaq 100 closing at record highs, Dimon warned that markets may be underestimating the potential for inflation to persist. He also highlighted the risks of geopolitical tensions, particularly in Ukraine, the Middle East, North Korea, and the use of nuclear blackmail, which could impact oil and gas prices, trade, and alliances.
When it comes to China, Dimon emphasized the importance of fully and deeply engaging with the country, but acknowledged the higher risks involved in banking there. JPMorgan has approximately 1,500 multinational clients in China, and the bank remains committed to serving them despite the challenges.
