Inflation Hotter Than Expected But Momo Gurus Have A New Narrative To Buy Stocks
Portfolio Pulse from The Arora Report
Inflation data came in hotter than expected, causing a slight pullback in the stock market, as represented by SPDR S&P 500 ETF Trust (SPY). Momo gurus are pushing a narrative that stocks will rise despite persistent inflation, citing it as a one-off event. Earnings from AI companies Arista Networks (ANET) and Cadence Design Systems (CDNS) were below expectations, impacting AI stocks negatively. Conversely, Coca-Cola (KO) reported better-than-expected earnings. Early trade shows negative money flows in major tech stocks and ETFs like SPY and Invesco QQQ Trust Series 1 (QQQ), with the momo crowd buying and smart money selling stocks. Gold, represented by SPDR Gold Trust (GLD), is under pressure due to the hotter CPI, while Bitcoin remains range-bound.
February 13, 2024 | 3:45 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
Coca-Cola reported better-than-expected earnings, potentially boosting investor confidence in KO.
Coca-Cola's positive earnings report could enhance investor sentiment towards KO, possibly leading to a short-term uptick in its stock price.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
Arista Networks reported earnings below expectations, negatively impacting AI stock sentiment.
As an AI darling, Arista Networks' disappointing earnings report could lead to a short-term negative sentiment in AI-related stocks, including ANET itself.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
Cadence Design Systems' earnings fell short of expectations, contributing to a pullback in AI stocks.
CDNS, another key player in the AI space, reported weaker earnings, likely exacerbating the negative trend in AI stocks in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 80
NEGATIVE IMPACT
SPDR Gold Trust is under pressure due to hotter CPI, despite gold being a long-term inflation hedge.
Despite gold's reputation as an inflation hedge, the short-term reaction to hotter CPI data has put pressure on GLD, reflecting immediate market dynamics.
CONFIDENCE 75
IMPORTANCE 65
RELEVANCE 75
NEGATIVE IMPACT
Invesco QQQ Trust Series 1 saw negative early trade money flows, indicating cautious investor sentiment towards tech-heavy ETF.
Negative money flows in QQQ, a tech-heavy ETF, suggest a cautious approach by investors towards tech stocks in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
SPY experienced a slight pullback due to hotter-than-expected inflation data, indicating a cautious market response.
The SPY ETF, mirroring the S&P 500, is directly impacted by inflation data, causing a slight market pullback. This reaction suggests a cautious stance among investors.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90