Markets fall ahead of Powell's testimony tomorrow and Thursday

Dow dropped 244, but advancers over decliners 5-4 & NAZ sank 284.  The MLP index added 1+ to the 277s & the REIT index was steady at 390.  Junk bond funds fluctuated & Treasuries were purchased which reduced yields.  Oil slid lower in the 78s & gold gained 13 to 2139 for a new record.

AMJ (Alerian MLP Index tracking fund)

Voters are headed to the polls on the biggest primary election day of the 2024 cycle with 1 issue in particular at the top of their minds: the state of the US economy.  About 1/3 of Americans think that economic problems are the most important issue facing the country today, according to a monthly poll published by Gallup.  That includes 12% of voters who are worried about the economy in general & 11% who identified the high cost of living & ongoing inflation crisis as the top problem in the country.  Another 3% expressed concern about the steep federal budget deficit, while 2% said taxes.  By comparison, 28% of Americans said that immigration is the #1 problem, while 20% said the top issue is the gov & poor leadership.  Another 6% identified poverty & homelessness as the biggest problems.  The findings come ahead of Super Tuesday, the day in the presidential primary cycle when many states vote.  More than 1/3 of Rep delegates are up for grabs in the 15 states that are voting.  About a 3rd of Dem delegates will also be decided, with nominating contests in 14 states plus American Samoa.  While inflation has fallen considerably from a peak of 9.1% notched during Jun 2022, it remains well above the Federal Reserve's 2% goal.   When compared with Jan 2021, shortly before the inflation crisis began, prices are up a stunning 17.6%.  Many families have yet to see material relief.  Food prices are up 33.7% from the start of 2021, while shelter costs are up 18.7%.  Energy prices, meanwhile, are up 33%.  Chronically high prices are forcing Americans to spend about $1019 more per month than they did 3 years ago, before the inflation crisis began, according to a recent estimate from Moody's Analytics.

Economic woes dominate Americans' worries on Super Tuesday

Sales of Apple's (AAPL), a Dow & NAZ stock, iPhone plunged in China in the first 6 weeks of 2024, according to a Counterpoint Research report.  The analyst firm said that iPhone sales dropped 24% in the period, as AAPL faced stiff competition from local smartphone firms like Huawei, Oppo, Vivo & Xiaomi.  AAPL came under particular pressure from Chinese tech giant Huawei, whose consumer business is experiencing a resurgence in China after the launch of its Mate 60 smartphone.  Several rival Chinese smartphone companies also logged drops in their unit sales in the 6-week period, but the declines were less pronounced than that of AAPL.  The best-performing smartphone brands for the first 6 weeks were Huawei & its spinoff Honor, which branched out of the tech giant in 2020 as a result of US sanctions.  AAPL is facing a tough environment in its key market, China. Several notable trends are adding pressure, not least of which is intense competition from local Chinese smartphone makers.  AAPL stock fell 4.76 (3%).

Apple iPhone sales plunge 24% in China as Huawei smartphone business resurges, report says

Target (TGT), a Dividend Aristocrat, reported higher holiday-qtr earnings on a smaller-than-expected sales decline & predicted that annual comparable sales would come in largely above expectations.  The mass merchandiser is banking on same-day services, product launches & a new membership program to boost spending at its stores.  Adjusted EPS were $2.98 in the 4th qtr, compared to $1.89 per share in the same period a year earlier.  The forecast called for $2.42.  Total comparable sales in the Nov- Jan period fell 4.4% compared with the 4.6% decline that was expected, in part due to a recovery in sales on Target.com.  Online sales fell 0.7% during the 4th quarter, an improvement from the 6% decline in the previous qtr.  Robust Black Friday & Cyber Monday spending helped drive holiday-qtr sale & shoppers gravitated to newly launched collections such as Kendra Scott jewelry & its private-label Figmint line of kitchenware.  Shoppers also responded to same-day pickup services, such as Drive-up, which made up more than 10% of total sales in the quarter.  Looking ahead, TGT will focus on rolling out new products & services, including a new Target Circle membership program, to reignite sales, traffic & market share gains in 2024, CEO Brian Cornell said.  TGT introduced its earnings outlook for 2024, saying it expects adjusted EPS of $8.60-9.60.  The midpoint of that range was largely in line with expectations of $9.14.  Annual comparable sales are expected to be in a range of flat to up 2% this year, compared to expectations of a 0.86% rise.  The stock jumped 17.76 (12%).

Target's earnings surge despite holiday sales dip, sees sales recovery in 2024

Stocks pulled back further from record highs as uncertainty over interest rate cuts & the continued strength of tech stocks brought a note of doubts to the market.  It's interesting to see the stock averages with sharp declines while a majority of stocks are higher.  Meanwhile gold (negatives bets on high priced stocks) reached another record high.

Dow Jones Industrials