Two Key Data to Watch Out For

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JOIN OUR FREE LIVE TRADING SESSION!](~/AASl5QA~/RgRnlPz-P0TNaHR0cHM6Ly9nZXQudHJhZGVhbGdvbWFpbC5jb20vd2ViaW5hci10cmFkZS1hbGdvLWxpdmUtc2Vhc29uLTgtZGVtaW8vP3V0bV9zb3VyY2U9R21haWwmdXRtX2NhbXBhaWduPURhaWx5QnVsbGV0aW4mdXRtX2lkPVByb21vVG9wJl9reD1pYVYza0NETWIxd19ycmVhSWNtWXpYN0drc2NZR0ZhcVhwaG9JSDlxWl9zUWVRVU4wb2E1dXMwMVJsNXFENkRjLlk5aUROWlcDc3BjQgplsf53smUQphUcUht0cmlzdHJhbWJhbGR3aW44OEBnbWFpbC5jb21YBAAQOCM~) Two Key Data to Watch Out For What do we have for today? We’ve got two key economic data coming up – gross domestic product (today) and personal consumption expenditures (tomorrow). Wall Street generally expect the GDP to be solid, but it’s inflation that will attract the most attention. Traders are trying to figure out whether the Federal Reserve will cut rates this March, and upcoming economic data will be key to determine the market’s future price action. - “Frankly, everything depends on the incoming data now and there are a lot of potentially significant releases over the next few weeks that could swing the odds of a March rate cut in either direction,” Paul Ashworth, chief North America economist at Capital Economics, wrote. - “We still think the Fed will lower rates by 25 basis points at that upcoming meeting.” Yesterday’s data release showed that business activity expanded in January by the most in seven months. Meaning? The economy remains strong despite higher interest rates. If inflation keeps falling, the central bank might cut rates to bring real interest rates down, so traders could enjoy a scenario where the economy keeps growing while rates are lowering. That scenario would be positive for the stock market. - “Growth is up and inflation is down. The former puts a ceiling on how many cuts the Federal Reserve will do while the latter means the Fed still ends up cutting,” said Renaissance Macro’s Neil Dutta. “Very good scenario for equity markets.” So, the market is “very bullish,” said Larry Tentarelli, the founder of the Blue Chip Daily Trend Report. We are only getting started in the earnings season, so the rally will depend on how well companies report earnings and guidance. - “The markets are very bullish,” said Larry Tentarelli, founder of the Blue Chip Daily Trend Report. And “the key thing right now is the reaction to earnings.” Larry Tentarelli, founder of the Blue Chip Daily Trend Report (Photo: Blue Chip Daily Trend Report) Tesla’s disappointing quarter: Elon Musk’s Tesla missed the fourth quarter revenue estimates and warned of a lower volume growth in 2024. Its Eps also came in below the expectations. As a result, the stock plummeted by as much as ~6% after the bell. Tesla said it expects growth to stall as it builds a next-generation vehicle, warning that it is “currently between two major growth waves.” So, it’ll be important for other tech companies to report strong earnings guidance to support the rally. Tesla may not be a “pure tech play” due to its capital-intensive business of building cars. We will see if software companies can keep growing, defying the trend of industrial companies. Invest In The Boom Of Infotainment Today’s Stock Pick: Visteon Corporation ([VC](~/AASl5QA~/RgRnlPz-P0R2aHR0cHM6Ly9kYXNoYm9hcmQudHJhZGVhbGdvLmNvbS9jb21wYW55L1ZDP19reD1pYVYza0NETWIxd19ycmVhSWNtWXpYN0drc2NZR0ZhcVhwaG9JSDlxWl9zUWVRVU4wb2E1dXMwMVJsNXFENkRjLlk5aUROWlcDc3BjQgplsf53smUQphUcUht0cmlzdHJhbWJhbGR3aW44OEBnbWFpbC5jb21YBAAQOCM~)) The competition in the auto industry is brutal. When Tesla entered the market, the game transformed to which company can offer the most appealing in-car experience. Elon Musk once said: - “…the goal for the infotainment system is to say what’s the most amount of fun you can have in a car. I don’t think other car companies really think about it that way.” As a result, it has become CRITICAL for automakers to offer an elite dashboard experience. Enter Visteon. It is the leader in cockpit electronic solutions for big-name brands like Ford, GM, and BMW. If you’ve seen a cool dashboard, it could be from Visteon’s product line. For example, check out its latest dashboard technology: (Photo: Visteon Corporation) This market will only continue to grow. About 40% of its Q3 2023 cockpit electronics wins were for electric vehicles. Why is this important? Of course, this implies that Visteon will not “miss the turn” for the EV boom. (Source: Visteon Corporation) Visteon had several key launches in the third quarter, opening a new program with Mercedes-Benz SUVs, Harley Davidson Touring, and JMC Pick-Up. This could deliver long-term sales growth because these models will continue to produce and sell over time. (Source: Visteon Corporation) High ROE business: Before the pandemic years, Visteon was running a high ROE business. (Perhaps one of the best metrics of a high-return stock.) The number climbed to above 20% before plummeting due to Covid and supply chain troubles. Now, the ROE has climbed back close to the 18% level. This shows that you can bank on Visteon continuing its high-return business for years to come. (Source: MacroTrends) Bottom line: Visteon is the leader in an essential accessory in virtually any car – a digital dashboard. It is the thing that automakers must offer to keep up with modern consumer demand. With Visteon’s recent wins with EV models, the company has a clear growth map from now on. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](~/AASl5QA~/RgRnlPz-P0TQaHR0cHM6Ly9nZXQudHJhZGVhbGdvbWFpbC5jb20vd2ViaW5hci10cmFkZS1hbGdvLWxpdmUtc2Vhc29uLTgtZGVtaW8vP3V0bV9zb3VyY2U9R21haWwmdXRtX2NhbXBhaWduPURhaWx5QnVsbGV0aW4mdXRtX2lkPVByb21vQm90dG9tJl9reD1pYVYza0NETWIxd19ycmVhSWNtWXpYN0drc2NZR0ZhcVhwaG9JSDlxWl9zUWVRVU4wb2E1dXMwMVJsNXFENkRjLlk5aUROWlcDc3BjQgplsf53smUQphUcUht0cmlzdHJhbWJhbGR3aW44OEBnbWFpbC5jb21YBAAQOCM~)       © All Rights Reserved, Trade Alliance [Unsubscribe](~/AASl5QA~/RgRnlPz-P0SpaHR0cHM6Ly9tYW5hZ2Uua21haWwtbGlzdHMuY29tL3N1YnNjcmlwdGlvbnMvdW5zdWJzY3JpYmU_YT1ZOWlETlomYz0wMUhLV1M1RzU3UFdDMlJKS0Y4SlI0UjRYMiZrPWJhODgyNDEzMzMyN2U1MzYzNjljZDQxNmQ3YmQ1MmFhJm09MDFITjBIWjdFNkhTWjEySzNBUlg3UjdOVEYmcj0zNm1qNmpzelcDc3BjQgplsf53smUQphUcUht0cmlzdHJhbWJhbGR3aW44OEBnbWFpbC5jb21YBAAQOCM~) | [Manage Preferences](~/AASl5QA~/RgRnlPz-P0SkaHR0cHM6Ly9tYW5hZ2Uua21haWwtbGlzdHMuY29tL3N1YnNjcmlwdGlvbnMvdXBkYXRlP2E9WTlpRE5aJmM9MDFIS1dTNUc1N1BXQzJSSktGOEpSNFI0WDImaz1iYTg4MjQxMzMzMjdlNTM2MzY5Y2Q0MTZkN2JkNTJhYSZtPTAxSE4wSFo3RTZIU1oxMkszQVJYN1I3TlRGJnI9MzZtajZqc3pXA3NwY0IKZbH-d7JlEKYVHFIbdHJpc3RyYW1iYWxkd2luODhAZ21haWwuY29tWAQAEDgj)