Key Economic Data To Watch Out For This Week

[CLICK HERE JOIN OUR LIVE TRADING & TRAINING SESSIONS]( Hello investor, Key Economic Data To Watch Out For This Week What is next? Wall Street wonders what could be the next catalyst after Fed Chair Jerome Powell’s speech last Friday failed to spark an obvious direction in the markets. Powell insisted that the central bank will “proceed carefully” in its rate-hiking cycle. Yes, there’s progress in inflation, but there’s more work to do. However, the central bank is likely to go meeting-to-meeting with its rate decision. - “Although inflation has moved down from its peak — a welcome development — it remains too high,” Powell said in his speech. - “We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.” (Photo: Kevin Dietsch / Getty Images) Right now, traders are pricing in a nearly 20% chance of a hike in the Fed’s next meeting in September. Meaning? The central bank is expected to go into a “wait and see” mode until it gets more data on inflation. The key will be whether inflation can keep coming down without requiring extra hikes. - “The intention of remaining restrictive still holds this year until the Fed is confident that inflation is starting to move closer to their target,” said Brian Price, head of Investment Management at Commonwealth Financial Network. - “At this point, the market appears to believe that one more interest rate hike is likely before the Fed hits pause,” he added. Upcoming economic data: We will get August’s Dallas Fed index, along with Friday’s monthly jobs report. These data may offer more insights on the strength of the consumer and the labor market. Remember that the labor market play a big role in consumers’ spending power. Less jobs available means consumers are more likely to pull back. People with no jobs have much reduced spending power. There are a lot of ramifications, so Wall Street will watch closely for the jobs report.  The #1 Stock With Every Trait Of A Monster Compounder Today’s Stock Pick: Rush Enterprises, Inc. ([RUSHA]() Rush Enterprises started in 1965 as a single truck dealership in Houston, Texas. And now, it has turned into the largest commercial vehicle dealer group in North America. It is also the #1 dealer group for premium trucking brands -- Peterbilt, Navistar, Hino, and Isuzu. However, there is a sneaky play for this stock. In 2015, Rush made a brilliant move to enter the aftermarket business with the launch of the RushCare portfolio of services. That move paid off like a charm for two reasons. First, like the airline industry, aftermarket parts offer the biggest margins. You can see it in Rush’s financials. Parts and Services accounted for just 33% of its total revenue but made up 62% of its gross profit. That’s how lucrative it is! (Source: Rush Enterprises) RushCare includes some incredible features – such as an ecommerce platform for parts purchasing, a communication system for real-time repair status updates, a dedicated service concierge team and telematics support. And this is where Rush’s biggest advantage comes into the picture. (Source: Rush Enterprises) As the largest dealer group, it has locations all over the country. If a truck has problems, there’s a RushCare center nearby that they can use. This is an H-U-G-E advantage that competitors will have difficult time matching. Chairman and CEO Rusty Rush (Photo: Rush Enterprises) Financials: You will love Rush’s economies. Its market cap is at $3.46 billion, and Rush authorized a $150 million share repurchase program in December 2022. That’s about 4.3% of its market cap. As a bonus, the company offers a 1.08% yield on its dividends. High return business: Thanks to price increases, Rush’s return on invested capital skyrocketed. But it has a track record of high returns. Its ROIC was 18.6% in 2019 – before the pandemic. It had to shut down the business during the lockdown, so its ROIC fell to 14.7% in 2020. Now, it returned to 35.2% in 2022. Will this last? Highly doubtful. But you can bank on the ROIC remaining around 18% level. So, you’ve got a powerful formula – The business can find places to deploy its capital with high returns, and it loves to buy back shares to increase shareholders’ returns. Bottom line: Rush Enterprises’ competitive moat is massive because of its scale advantages. The company is also an acquisition machine that could drive its future growth – along with its ability to generate high returns on capital invested. This stock has all the qualities of a monster compounding stock.   [CLICK HERE JOIN OUR LIVE TRADING & TRAINING SESSIONS](     © All Rights Reserved, Trade Alliance If you no longer want to receive these messages, you may [click here]( to unsubscribe.