COST Jul 2024 795.000 call
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How consumer spending, election impact markets: Market Domination
On today's episode of Market Domination, hosts Julie Hyman and Josh Lipton cover how major trends like weak consumer spending and the election are impacting the markets (^DJI, ^IXIC, ^GSPC). As the S&P 500 (^GSPC) and Nasdaq (^IXIC) snap their three-day losing streak, Roundhill Investments CEO Dave Mazza joins the show to give insight into the market movement. He explains, "The mega-cap companies, the 'Magnificent Seven,' have really been the star performers and folks who are looking for a rotation, whether it's to small caps or even other cyclical sectors like industrials and financials, haven't seen it yet. So it doesn't give people really a lot of confidence, even though to your point, for all intents and purposes, they should be particularly bullish. Look at money market assets, money in money market mutual funds are at all time highs. So it's sort of this weird environment where folks are seeking out safety." The pharmaceutical industry is seeing significant movement. Shares of Moderna (MRNA) are falling after the company said its newly approved RSV vaccine was only about 50% effective after 18 months. Meanwhile, the US House Ways and Means Committee has proposed a strategy for Medicare to cover GLP-1 weight-loss drugs like Novo Nordisk's (NVO) Wegovy and Eli Lily's (LLY) Zepbound. The amendment to the Treat and Reduce Obesity Act of 2023 will be voted on in Thursday's session. In the latest edition of Good Buy or Goodbye, Tematica Research chief investment officer Chris Versace explains why Costco (COST) is a better investment than McDonald's (MCD) amid weak consumer spending. Versace sees Costco (COST) as a buying opportunity as the retail giant is "extremely well positioned," with about 54% of its product revenue coming from fresh food and sundries. On the other hand, he is bearish on McDonald's, explaining that despite rolling out value meals, the fast food giant is "no longer the cheap alternative." As the 2024 presidential election inches closer, Blue Line Futures chief market strategist Phil Streible joins the show to highlight how each administration may affect the commodity market. He states, "Energies are one of the top focuses that we're going to be watching. Under Trump, we were energy independent. We did also have a hard stance on Iran. It makes a play for lower energy prices if Trump was to come into office where we are much more dependent on OPEC, South American oil, it's very difficult for oil and gas exploration companies to get those permits to expand wells." This post was written by Melanie Riehl
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Amid weak consumer spending, buy Costco, skip McD's: Strategist
On today's edition of Good Buy or Goodbye, Tematica Research chief investment officer Chris Versace joins Julie Hyman to discuss his top picks as consumers struggle with the rising cost of food. Versace points to Costco (COST) as a buying opportunity as consumers cut back on dining out. He explains that the retail giant is "extremely well positioned" since about 54% of its product revenue comes from fresh food and sundries. He adds that Costco is taking wallet share as it continues to deliver value to consumers, pointing to its $1.50 hot dogs as one area of consistent value. The strategist also emphasizes that Costco has yet to raise its membership fee. When the price increase finally hits, he notes that consumers will likely continue paying their memberships, allowing the company to generate more revenue. On the other hand, Versace is bearish on McDonald's (MCD). He reiterates that consumers are not eating out as much as inflation continues to pressure their household budgets and notes that the fast food giant is "no longer the cheap alternative." Despite rolling out value meals, Versace is unsure whether McDonald's can drive its margins higher over time. In addition, wage pressures have created headwinds for McDonald's in terms of hiring and maintaining its workforce. He notes that the company will have to make significant investments to overcome this issue and boost productivity. For more Good Buy or Goodbye, click here. For more expert insight and the latest market action, click here to watch this full episode of Market Domination Overtime. This post was written by Melanie Riehl
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Looking to get away? Costco could be your new travel agent
Retail giant Costco (COST), mostly known for its buying-in-bulk deals and hot dog prices undeterred by inflation, also has a travel section dedicated to finding savings for consumers looking to get away. Travel Expert Mark Ellwood joins Wealth! to give insight into why Costco could be your new travel agent. "They sell travel at discounted rates, especially if you're looking for hotels and flights together, which is great at a peak time last minute because the way the pricings work, often cheaper." says Ellwood. For more expert insight and the latest market action, click here to watch this full episode of Wealth! This post was written by Nicholas Jacobino For more of Yahoo Finance's coverage on Costco and travel experiences: 'There are bargains out there' as summer travel season heats up The cult of Costco, hotdog included Choosing the best travel credit cards for summer 2024 How to avoid travel scams ahead of your summer vacation COVID 'revenge travel' is still affecting gas demand: Analyst Costco posts Q3 earnings beat, US same-store sales jump 6% 3 places to travel to instead of Europe this summer Summer travel boom: La Compagnie CEO talks European demand
