Ready for the jobs report?!

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Fed Chair Jerome Powell said his piece in his two-day testimony, and he bolstered the confidence of rate cuts happening this year. Now it is on to today’s jobs report. February’s jobs report will be out this morning to reveal insights into the current state of the labor market. Economists expect growth of 198,000 and an unemployment rate of 3.7%. These estimates would indicate a slightly cooling (but still strong) labor market, while the unemployment rate would remain historically low. The spotlight will also be on wage growth. It is a big metric to see if the central bank can bring inflation down to the 2% target. Labor costs are a large expense for many companies, so any increase in wages will likely lead to price increases for consumers. - “Most important in [Friday’s] report is information about wages and if they are climbing too quickly,” said Gina Bolvin, president of Bolvin Wealth Management Group, said on Thursday. “If they are moving up too fast, companies will pass this this cost to the end user, which is inflationary.” Gina Bolvin, president of Bolvin Wealth Management Group (Photo: CNBC) The recent inflation data showed an uptick in price gains, but the market has brushed them off because of strong earnings growth. As long as companies keep growing profits, the stock market looks poised to keep rising. - “The markets have declined on inflationary data, however it has recovered quickly,” Bolvin added. “It’s a constant buy-the-dip mentality mostly because earnings growth and estimates have been strong.” An AI Play That’s Still Cheap Today’s Stock Pick: Adobe Inc. (ADBE) Did you know that Steve Jobs tried to buy Adobe for $5 million during its first year of being in business? The founders, John Warnock and Charles Geschke, refused the offer but agreed to sell him shares worth 19 percent of the company. And these two founders eventually built Adobe into one of the most admirable companies in the world. Adobe’s innovation DNA has led to some iconic products like Photoshop and PDF. In fact, it owns a whopping total of 8,204 patents globally -- with 6,703 patents active. The company still dominates its field to this day. The stock fell 46% from its all-time high, making it a wonderful time to buy while it is cheap. Subscription-based business: The best thing about Adobe is that about 92% of its revenue came from subscription products. What does this mean? Stable and consistent revenue. Adobe is divided into three main business units – Adobe Creative Cloud, Document Cloud, and Experience Cloud. Creative Cloud holds some of the insanely popular applications like Photoshop, Illustrator, After Effects, and many more. Users just need to pay a subscription fee to get access to these apps. And of course, Photoshop overwhelmingly dominates its category. It has become a “verb.” Adobe said, "90% of the world's creative professionals use Adobe Photoshop." This segment has a massive Total Addressable Market of ~$41 billion in 2023, and still growing. Adobe projects a 53% growth in TAM to ~$63 billion in 2024. (Source: Adobe) Document Cloud, the second business unit, offers a bunch of services in electronic documents. Adobe invented PDF but made it free for the public to use. But its services make it easy for people to convert different files to PDFs. Plus, it offers e-signature services that will continue to become a vital part of almost any business operation. Adobe also believes that this industry’s TAM will grow by 52% from 2023 to 2024. Experience Cloud has tremendous potential for Adobe. It offers marketing software that makes it possible for hyper-personalized messaging, where certain customer segments will receive special messages at the right time. Adobe’s platform uses data analytics to track a buyer’s journey from the beginning to the end. Plus, its Marketo software allows marketers to create email automation, journey campaigns, and ongoing campaigns. Notably, it pioneered the concept of “Dynamic Content” which allows marketers to send personalized email content based on a customer’s industry. Adobe estimates its TAM to be at ~$85 billion and could grow to ~$110 billion in 2024. (Source: Adobe) Bottom line: Adobe is one of the best compounding stocks in the world. With its subscription-based products, you get a very stable revenue stream. Adding to its stability is how critical Adobe’s products are for many professions. For example, virtually any designer uses Photoshop. Product stickiness makes it tough for professionals to leave the Adobe ecosystem. [EARN WHILE YOU LEARN! JOIN OUR FREE LIVE TRADING SESSION!](       © All Rights Reserved, Trade Alliance [Unsubscribe]( | [Manage Preferences](