Federal Reserve officials are growing more concerned about their progress on inflation. In the Fed minutes from April 30 - May 1, members indicated they lacked confidence in cutting interest rates. They voted unanimously to keep the benchmark short-term borrowing rate within the range of 5.25%-5.5%, where it has been since July 2023. Even though participants observed inflation easing over the past year, there had been “a lack of further progress” in recent months toward the committee’s 2% inflation target.
Delta Airlines (DAL)
Delta Air Lines and United Airlines, each up over 30% this year, have been highlighted by analysts. HSBC analyst Achal Kumar initiated coverage on Delta, United, and American Airlines, and Delta won the highest praise. Kumar set a $72.80 price target for Delta, indicating a 37% upside. He noted Delta's strong positioning at key hubs, with a 70-75% market share at its top six hubs, and significant capacity deployment. Delta also leads in the premium traffic segment among US full-service carriers, and airlines are expected to benefit from ongoing corporate travel recovery and high demand for international vacations.
DAL (Daily). Having a long run in 2024, the share price is projected between 50.80 and 55.60 for the coming weeks. With a continuation of bullish momentum, Delta Airlines presents a good buy opportunity.
Ford (F)
Analyst Daniel Roeska has initiated coverage of Ford with an outperform rating, indicating a potential 33% upside with a price target of $16. Despite a 1% decline in Ford's shares this year, he is optimistic about their long-term prospects due to its expansion into the electric vehicle market and strong performance in pickup trucks and SUVs. Roeska believes Ford's profitability in core markets and US investments will drive operating leverage and profits for its EV unit.
F (Daily). Trading in a tight zone between 12.00 and 13.00 per share for the last 2 months. This counter offers a good buying opportunity near the 12.00 support level with a 33% potential upside.
Advanced Micro Devices (AMD)
AMD, the biggest competitor to Nvidia, has also seen its shares jump after Nvidia’s earnings report. The stock rose 10.7% after Nvidia’s most recent results and 11.2% same time last year. The surge in valuations reflects continued investor hunger for companies that design and sell GPUs for artificial intelligence. Last year, AMD announced a new chip that could compete with Nvidia’s H100, the current standard for AI applications. Analysts also see AMD improving its AI software, eliminating a key reason why Nvidia chips have been preferred over AMD’s.
AMD (Daily). Based on the Fibonacci pattern in the last 12 weeks, AMD ended its correction and started to rebound towards the 38.2% fibo level at 174.00 and the 50% fibo level at 184.20.
Fullerton Markets Research Team
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