Cocoa Dec 24 (CC=F)
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Super Micro stock sinks, CrowdStrike earnings on tap: Catalysts
On today's episode of Catalysts, hosts Brad Smith and Madison Mills break down some of the biggest stories of the trading day, from sinking shares of Super Micro Computer (SMCI) to the rising prices of cocoa (CC=F). Super Micro Computer (SMCI) stock is under pressure after the company announced it was delaying its annual report. This move comes after claims from short seller Hindenburg Research alleging "accounting manipulation" at the company. Defiance ETFs CEO & CIO Sylvia Jablonski suggests that if SMCI can demonstrate they have the situation under control and their accounting is accurate, "then this is a great buy on the dip opportunity." She highlights the stock's impressive growth over two years, the company's leadership in cooling data centers, and the upcoming 10-for-1 stock split scheduled for October. As consumers show continued signs of weakness and tighter budgets, HSBC has downgraded the consumer discretionary sector (XLY) as a whole. HSBC Global Chief Investment Officer Willem Sels explains that financially healthy consumers are spending more on services and leisure than discretionary items. However, he emphasizes the importance of distinguishing between companies within the retail space: "you want companies that have the pricing power because of their positioning." Toy giant Lego has reported double-digit sales growth year-over-year in the first half of 2024, rising by 13% in a "toy market that's not growing right now," according to The Lego Group CEO Niels B. Christiansen. Christiansen sits down with Yahoo Finance executive editor Brian Sozzi to talk about Lego's fundamental building blocks that continue to make the brand a standout among consumers. "The appreciation of the fact that playing allows you to gain some skills and to really develop your brain, but also a lot of skills that you need through life, I think that's actually well appreciated by parents and kids really like it," Christiansen says, later adding: "The Lego brand is just such a good bridge between digital and physical." The price of cocoa (CC=F) is still trading over 128% compared to a year ago due to increased weather incidents and crop disease which have led to supply shortages. Saxo Bank head of commodity strategy Ole Hansen explains why prices may be out of control for some time, perhaps as far ahead as 2026: "That really is a combination of two things: first and foremost, that the farmers are receiving more for their product. They can spend more money on fertilizers and also pesticides, which is a key right now due to some diseases they have in some of the crops. But also that we see the weather continue to improve..." Meanwhile, CrowdStrike (CRWD) will release its first earnings report since the massive software update triggered global IT outages in July. Citi US software equity research co-head Fatima Boolani notes that investors will be specifically looking at guidance as they look to rebuild their confidence in the company. "There is absolutely an appetite for this company to frankly just throw the book at guidance, just every possible parameter or permutation that they can throw into guidance and frankly, de-risk the numbers is exactly what investors are looking for," she explains. This post was written by Melanie Riehl
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Cocoa prices could be out of control until 2026: Here's why
The price of cocoa (CC=F) is still trading over 128% compared to a year ago due to increased weather incidents and crop disease which have led to supply shortages. Saxo Bank head of commodity strategy Ole Hansen joins Catalysts to give insight into the rise of cocoa prices, recent supply chain issues, and more. Hansen points out how the high prices themselves hasn't fully incentivized production booms: "So far we haven't really seen those structures really unfold because the producers in question here is primarily in West Africa. And it does take time for the economics, the farm gate prices to raise to levels where they can increase production. At the same time, it looks like global demand remains fairly robust." Hansen explains why prices may be out of control for some time, as far ahead as 2026 possibly. "AAnd that really is a combination of two things: first and foremost, that the farmers are receiving more for their product. They can spend more money on fertilizers and also pesticides, which is a key right now due to some diseases they have in some of the crops. But also that we see the weather continue to improve...." For more expert insight and the latest market action, click here to watch this full episode of Catalysts. This post was written by Nicholas Jacobino
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Inflation isn't easing for consumers: Mondelez CEO on prices
Is inflation taking a bite out of consumers' budgets or are they still finding the funds to purchase their favorite snacks? Yahoo Finance Executive Editor Brian Sozzi is joined by Mondelez International (MDLZ) CEO Dirk Van de Put to talk about the beverage and food company's first-quarter earnings beat as consumers struggle to manage under price hikes from other brands and chains. "We can detect that there is a group of consumers, particularly the lower-income consumers in the US, that are being affected by everything they see, interest rates, and the SNAP benefits that went away and so on. But snacking less? No, not yet," Van de Put says, later adding about price hikes: "We have the same going on for us in the sense that the inflation in our input cost didn't ease this year. It's right up there where it was last year, so another significant increase in our cost and we have to reflect that in our prices. So, it is not that we particularly want to increase our prices. we would prefer not to as you can imagine. But the inflationary environment is not easing at all." Van de Put weighs in on where rising cocoa prices (CC=F) are showing up in snack prices as retail chains begin offering their own lines of products. For more expert insight and the latest market action, click here to watch this full episode. This post was written by Luke Carberry Mogan.
