Weekend Update - 3|17|24

WEEKEND UPDATE - 3|17|24

Economy Reports

On Tuesday, consumer-price index (CPI) rose 3.2% in February compared to last year, which was slightly higher than the 3.1% expected. Core inflation, excluding food and energy, also increased by 3.8%.  On a monthly basis, costs increased 0.4% vs. 0.3% expected.


The producer price index (PPI), which measures pipeline costs for raw, intermediate and finished goods, jumped 0.6% on February, and 1.6% YOY.  This was the biggest move since September 2023. Most of these rise came from higher food, gas and rent price. 


Retail sales at stores, online and in restaurants rose 0.6% in February from the prior month vs. 0.8% increase  expectedly the Economists. The jobless Claim came at 209,000 for last week vs. estimated 218,000.  All these data along with CPI data that we saw early this week makes FED in no rush to cut rates in the near term. 


This week the FOMC meeting to be held on 3/19 and 3/20. I do not think FED is going to do anything with the interest rate and they may say that inflation is ticking up, so they will be more vigilant. I do not see any rate cut before June/July.


Adobe (ADBE) came with its Q1 earnings last Thursday and beat the top and bottom line but 

  • Earnings per share: $4.48 adjusted vs. $4.38 expected
  • Revenue: $5.18 billion vs. $5.14 billion expected
  • Guidance: $4.35 to $4.40 with $5.25 billion to $5.30 billion in revenue vs. $5.31 billion in revenue estimated.
My View: The predicted earnings of $4.38 which is inline with estimates but sales of $5.28 billion, just shy of views for $5.31 billion for second quarter. The slight miss caused Adobe shares to plunge 14%. I guess it was an over reaction by the Wall Street. I feel it's a good longterm investment.


Two Biotech that we discussed in our last Investment Meet had a huge run in the after hour trading. 


Madrid Pharmaceutical (MDGL): The Food and Drug Administration (FDA) approved first ever product for the liver disease called NASH, or nonalcoholic steatohepatitis. This is a huge news for the patient as there were no drug available for its treatment. The stock was up 11%. I see it has a big future potential.


Geron (GERN): The FDA Oncologic Drugs Advisory Committee voted 12 to 2 in favor of the clinical benefit/risk profile of imetelstat for the Treatment of Transfusion-Dependent Anemia (blood cancer) in Patients. Now though it’s not 100% approved but it’s highly likely that it should be approved by FDA on or before June 16, 2024. The stock rocketed 92% on Friday. I do feel this company may good future potential for partnership or buy out in future.


MAJOR EVENTS THIS WEEK


On Monday, 3/18: NVIDIA (NVDA) CEO Jensen Huang is scheduled to deliver the keynote address at the GPU Technology Conference from 1 – 3 p.m. PDT. The event will be held live on-stage at the SAP Center in San Jose. This is extremely important to know about AI momentum. The may be a market driving event. Let's see how it goes..


FOMC Meeting: Federal Reserve will meet on Tuesday and Wednesday, 3/20.


SMCI Stock will be added to S&P 500 on Monday. We will see ow it goes. 


Stocks to watch next week: NVDA, SMCI, ADBE, AVGO, GERN, PANW, SNOW.


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