Good MorningAs traders braced for today's FOMC policy announcement, equity markets pulled back on Tuesday. The odds are high that the committee will cut rates by 25 basis points; the question is how they change the statement. The latest economic data suggests no reason to cut interest rates further. The data also shows a growing possibility higher rates will be needed, which means the committee may pause the rate reduction cycle.
The timing of the PCE Price Index is bad news for the Fed. The report is due on Friday, two days after the policy announcement, and will likely show inflation running hot. The consensus is for the Fed's favored gauge of consumer-level inflation to accelerate at the headline and core levels compared to the prior year. At 2.9%, core inflation will match the highest level of the year, set in January, and two-tenths hotter than in September, when the Fed began lowering rates. However, the S&P 500 may not react unfavorably; the underlying causes of inflation are economic strength, a driver of corporate earnings. Featured: 25X predicted for “Amazon Coin” – starting December 16th? (True Market Insiders) 
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Markets | | | After trailing the broader market this quarter, the semiconductor sector could be on the cusp of a resurgence. The VanEck Semiconductor ETF (NASDAQ: SMH) has only gained 8.36% quarter-to-date, underperforming the Invesco QQQ ETF (NASDAQ: QQQ), which climbed nearly 14%. However, the tide may be turni... Read the Full Story |
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Dividend growth stocks are companies with stable cash flow and the ability to increase their distributions annually. They are important for investors because they provide a stable return and leverage for portfolio growth. The ever-increasing per-share dividend distribution provides an increas... Read the Full Story |
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President Trump has stated his intention to place import tariffs on all goods made outside of the United States, supporting his America First initiative. He wants to galvanize the nation's manufacturing industry, which is a boon to factory workers. However, tariffs may stimulate inflation as ... Read the Full Story |
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Shares of Salesforce Inc (NYSE: CRM) have been a standout performer this year, as they continue to add gains to the 180% rally that kicked off in late 2022. Two years in, this tech giant is looking stronger than ever. Up 70% since May alone and already setting record highs this month, Salesfo... Read the Full Story |
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Stocks | | | European markets opened higher after a mixed trading session in Asia ahead of the Federal Reserve's final rate decision of this year. The futures for the S&P 500 and the Dow Jones Industrial Average were 0.2% higher. France’s CAC 40 rose 0.1% in early trading to 7,373.03, while Germany’s DAX add... Read the Full Story |
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Markets | | | The Iranian rial on Wednesday fell its lowest level in history, losing more than 10% of its value since Donald Trump won the U.S. presidential election in November and signaling new challenges for Tehran as it remains locked in the wars raging in the Middle East.The rial traded at 777,000 rials to t... Read the Full Story |
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Markets | | | The Chronicle’s annual list of the biggest charitable donations from individuals or their foundations totaled nearly $6 billion in 2024, with half of that coming from three contributions of $1 billion or more each. Two of those three gifts went to medical schools to provide financial aid. Altogether... Read the Full Story |
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The plight of medical providers collecting timely reimbursements from health insurers is a struggle that has been getting tougher by the year. Health insurance claim denials have come under scrutiny in light of recent events. Sentiment has turned sour on the medical sector stocks of insurance ca... Read the Full Story |
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Markets | | | Inflation in the U.K. rose to its highest level in eight months during November, official figures showed Wednesday, a development that has cemented market expectations that the Bank of England will opt against cutting borrowing costs this week.The Office for National Statistics said consumer price i... Read the Full Story |
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Markets | | | Federal Reserve officials on Wednesday will likely signal a slower pace of interest rate cuts next year compared with the past few months, which would mean that Americans might enjoy only slight relief from still-high borrowing costs for mortgages, auto loans and credit cards Read the Full Story |
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Wednesday's Early Bird Stock Of The Day British American Tobacco p.l.c. engages in the provision of tobacco and nicotine products to consumers worldwide. It also offers vapour, heated, and modern oral nicotine products; combustible cigarettes; and traditional oral products, such as snus and moist snuff. The company offers its products under the Vuse, glo, Velo, Grizzly, Kodiak, Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Camel, Natural American Spirit, Newport, Vogue, Viceroy, Kool, Peter Stuyvesant, Craven A, State Express 555 and Shuang Xi brands. It also distributes its products to retail outlets. British American Tobacco p.l.c. was founded in 1902 and is based in London, the United Kingdom. | Should I Buy British American Tobacco Stock? BTI Pros and Cons Explained
These insights were generated using artificial intelligence. They are based on proprietary MarketBeat data, news articles, and custom LLM A.I. algorithms. This analysis of British American Tobacco was last updated on Friday, December 13, 2024 at 12:05 AM.
Pros-
Recent increase in institutional investment, with Cerity Partners LLC raising its stake by 89.6%, indicating strong confidence in the company's future performance.
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Current stock price is $37.73, which may present a buying opportunity for investors looking for value in the tobacco sector.
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Barclays upgraded British American Tobacco to a "strong-buy" rating, suggesting positive sentiment from analysts regarding the company's growth potential.
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British American Tobacco has shown resilience in its stock performance, with significant trading volumes indicating active investor interest.
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The company has a manageable debt-to-equity ratio of 0.60, suggesting a balanced approach to leveraging and financial stability, which can be attractive to risk-averse investors.
Cons-
Analysts from Morgan Stanley have downgraded the stock from "overweight" to "underweight," setting a price target of $33.00, which may indicate potential downside risk.
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Recent reports show a mixed outlook from analysts, with some downgrading their ratings, which could lead to uncertainty among investors.
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The company operates in a highly regulated industry, which can pose risks related to compliance and potential changes in legislation affecting tobacco products.
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Market sentiment towards tobacco companies is increasingly negative due to health concerns and a shift towards healthier alternatives, which could impact long-term growth.
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Despite recent institutional interest, 21.44% of the stock is still owned by institutional investors, which may indicate limited retail investor confidence in the stock's future performance.
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