A group of numbers that tells us how much people are worried or happy about buying and selling things in the market went down a little bit, but it is still showing that most people are scared. However, the big list of companies that people can buy and sell parts of also went up for the fourth day in a row. Some companies did well because people thought they were good to buy, while others did not do so well because they made less money than expected. Most types of businesses in the big list went up in value, except for ones that deal with buildings and land. Read from source...
- The CNN Money Fear and Greed index is a subjective measure that does not reflect the actual market sentiment. It is based on six factors: market volatility, put/call ratio, junk bond yield spread, silver/gold ratio, US dollar strength, and Treasury yields. However, these factors are not always correlated with each other or with the overall market performance. For example, a high volatility does not necessarily imply a fearful market, as it could also indicate a high level of liquidity and trading activity. Similarly, a low volatility does not mean a complacent market, as it could also reflect a lack of interest or momentum.
- The data released on Friday showed that the U.S. economy added fewer jobs than expected in April, but this is not necessarily a bad sign for the stock market. In fact, some analysts argue that the labor market is approaching its maximum potential and that further gains in employment would be less beneficial for economic growth and inflation. Moreover, the unemployment rate increased slightly, which could indicate a tighter labor market and higher wages. A lower unemployment rate also reduces the chances of the Federal Reserve cutting interest rates or quantitative easing, which could be positive for the stock market in the long run.
- Micron Technology Inc shares gained around 5% on Monday after Baird analyst Tristan Gerra upgraded the stock from Neutral to Outperform and raised its price target from $115 to $150. This is a clear example of an irrational argument, as it relies on a single analyst's opinion without providing any evidence or reasoning behind it. Furthermore, Baird is not a well-known or respected firm in the semiconductor industry, and Gerra has a low success rate and a high bias score according to TipRanks. Therefore, this upgrade is likely based on sentiment rather than fundamentals.
- Buy Micron Technology Inc (MU) for long-term growth potential and technology leadership in memory chips. The stock is trading at a reasonable P/E ratio of 17.85x, with strong analyst support and positive earnings momentum. The upgrade from Baird adds credibility to the bull case and indicates potential upside of more than 30% from current levels.
- Sell Tyson Foods, Inc (TSN) for short-term underperformance and valuation concerns. The stock is trading at a high P/E ratio of 21.54x, with negative earnings momentum and weak profit margins. The disappointing revenue results show that the company is facing headwinds in the meat processing industry, which could continue to pressure the stock price in the near term.