Inflation persists through this summer as the second big economic report for the week was released on Thursday. With the economy running hot and COVID-19 cases on the rise, investors should stay away from breakout trades and focus on pullbacks… and I’ve picked out three of my favorites — and more in today’s stock market recap.
But first…
Stock Market Recap
In today’s stock market recap, global stocks are mixed this morning as investors digest this week’s key U.S. economic reports.
Wednesday’s rising Consumer Price Index data was followed by Thursday’s Producer Price Index (PPI) report, which showed producer prices also rose in July. The PPI rose at a 7.8% annual pace, and 1% month over month. Analyst consensus was 7.3% and 0.6%, respectively.
The Federal Reserve has admitted inflation is running hotter than expected but kept its stance that inflation has been high due to temporary factors. Some of these include raw materials, the used car market and other general supply chain issues. The Fed has mentioned a possible taper in its bond-purchasing program could come earlier than expected. Rising COVID-19 cases may alter the timeline, however. Analysts expect possible government restrictions would slow down the economy — increasing the need for continued stimulus.
Roger’s Radar: Top 3 Pullbacks for Thursday
Cognex Corp. (NASDAQ: CGNX) is the world’s leader in the machine vision industry. It designs and manufactures machine vision systems used to inspect surfaces of manufactured products. It has a five-year dividend growth of 1,927.27%! CGNX has pulled back to its 50-day moving average and will benefit from an expanding economy.
The other two picks on my radar are REITs. The first is involved in health care and provides senior housing and medical offices. The second offers single-family homes as rental properties.
In today’s video, you’ll discover how inflation is impacting U.S. stocks… which type of stocks to focus on right now… whether it’s best to stay with large or mid caps… and the top 3 pullbacks for Wednesday.
P.S. Join Me in My Live Trade Room!
Every Monday through Friday, I meet with members from our VIP Trade Room…
And Thursday at 2 p.m. EDT, I will open up the trade room for non-members to participate. Yes, that means anyone can join!
During the live trade room, I will:
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Explore whether COVID is going to put fear into the markets again and what that means for YOUR money.
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Look at current momentum levels while also digging into airline and cruise ship stocks.
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Hand you the best stocks to trade for the month of August.
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Answer any questions YOU have.
This is a rare opportunity to join me as we break down what’s going on in the stock market — and it’s 100% free!
Check back each morning for Roger’s Radar and the most important news and numbers in the WealthPress stock market recap.
