The Commodities Feed: CPI Data Weighs On Parts Of The Complex

ING

Commodity

Economic

Energy

Summary:

Stronger-than-expected US CPI data put some downward pressure on large parts of the commodity complex. However, oil prices still managed to rally yesterday amid the ongoing tension in the Middle East.

Energy – Oil up despite bearish inventory report

Oil prices rallied yesterday with ICE Brent up almost 1.2% to settle back above US$90/bbl. This strength comes despite a somewhat bearish inventory report from the EIA, as well as a stronger-than-expected CPI report, which likely pushes the Fed’s first rate cut further back. The current geopolitical environment continues to provide support to oil prices. There were media reports that the US government believes that attacks by Iran or its proxies on Israel are imminent, as a retaliation for the earlier airstrikes carried out on the Iranian embassy in Syria.

The EIA’s weekly inventory report was fairly bearish with US commercial crude oil inventories increasing by 5.84m barrels over the last week, which was more than expected and also above the API’s number of a 3.03m barrel build. Lower crude oil exports would have driven the stock build, with exports falling by 1.31m b/d WoW to 2.71m b/d, the lowest weekly export volume since August last year. Lower refinery run rates would have also helped with utilisation rates falling by 0.3pp WoW. More modest stock builds were seen in products, with gasoline and distillate inventories increasing by 715k barrel and 1.66m barrels respectively. Weaker implied demand over the week would have helped drive product inventory builds with total refined products demand falling by 2.06m b/d WoW. Gasoline made up a large share of this, with its demand falling 624k b/d WoW.

On the calendar today, OPEC will release its latest monthly oil market report, which will include its latest outlook on the market for the remainder of this year and 2025. In addition, the report will include March production numbers for OPEC members. For natural gas, the EIA will release its weekly US inventory report today. The market expects that US natural gas inventories increased by around 13Bcf over the last week, compared to a 5-year average increase of 24Bcf for the same period. Last week’s report showed that storage was 23% higher than year ago levels and also 38.9% above the 5-year average.

Metals – CPI data weighs on the complex

Gold prices declined while copper prices halted their upward rally yesterday following a stronger-than-expected US inflation report. The dollar index rose sharply while treasury yields moved higher on rising expectations of a likely delay in the Federal Reserve interest rate easing cycle. Swap traders are now pricing just two rate cuts by year-end, compared with three cuts forecasted by policymakers in the March meeting.

A recent survey from the Shanghai Metals Market (SMM) showed copper cathode production rising 5% YoY (+5.2% MoM) to 999.5kt in March with many smelters increasing production while the number of production days also increased compared to February. Cumulatively, copper output rose 7.6% YoY to 2.9mt in the first three months of the year.

Chinese primary aluminium production rose 4.2% YoY to 3.6mt last month as smelters in Yunnan province began to resume production. SMM said that smelting capacity in Yunnan had reached 4.74mt/year as of 9 April, up 5.6% MoM. Existing aluminium capacity in China totals about 45.2mt, while operating capacity stands at around 42.1mt (with operating rates growing by 4.4% YoY to 93%). Meanwhile, China’s refined zinc output fell 5.6% MoM to 525.5kt, while primary lead production was down 9% MoM to 293.7kt last month.

Agriculture – WASDE release

The USDA is scheduled to release its monthly WASDE report later today. The market expects the agency to increase its US soybean ending stocks by 4m bushels to 319m bushels while trimming its corn ending stock estimates by 63m bushels to 2,109m bushels. Turning to global supply, the agency is expected to revise its Argentina corn and soybean output estimates slightly to 55.8mt (-0.2mt) and 50.4mt (+0.4mt) respectively. Meanwhile, Brazilian corn and soybean production estimates are expected to be trimmed to 122.6mt (-1.4mt) and 152.3mt (-2.7mt) respectively. Global ending stocks for corn are expected to decline from 319.6mt estimated in March to 317.1mt, while soybean ending stock estimates are expected to fall to 113.8mt from 114.3mt.

To stay updated on all economic events of today, please check out our Economic calendar

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Cohen

Commodity

Soaring copper prices show no signs of slowing down, analysts say, with the red metal’s rally fueled by supply risks and improving demand prospects for energy transition metals.

Copper prices with May delivery traded at $4.323 per pound in New York as of Wednesday morning, extending gains after settling at its highest level since June 2022 in the previous session.

Copper briefly hit a high of $4.334 in intraday trading on Tuesday, reflecting its highest level since the middle of January last year.

Three-month copper prices on the London Metal Exchange traded 0.6% higher at $9,477 per metric ton.

Demand for copper is widely considered a proxy for economic health. The base metal is critically important to the energy transition ecosystem and is integral to manufacturing electric vehicles, power grids and wind turbines.

Wall Street banks are bullish on the outlook for copper prices through to the end of the year.

Earlier this week, analysts at Citi said that they believe the second secular bull market of copper this century is now underway — roughly 20 years after the first such cycle.

Citi said on Monday that it expects copper prices to trend higher over the coming months, averaging $10,000 per metric ton by the end of the year and climbing to $12,000 in 2026, according to the bank’s base-case scenario.

“Explosive price upside is possible over the next 2-3 years too, if a strong cyclical recovery occurs at any time, with prices potentially rising more than 2/3rds to $15k/t+ in this, our bull case scenario,” analysts at Citi said in a research note.

“Our $12k/t base case assumes only a small uptick in cyclical demand growth over the course of 2025 and 2026,” they added.

‘Commodity markets always self-solve’

Separately, analysts at Bank of America have raised their 2024 price target for copper to $9,321, up from its previous forecast of $8,625.

The Wall Street bank said Monday that copper was at the “at the epicentre of the energy transition, which means that the lack of mine supply growth is being felt acutely.”

“Tight concentrates availability is increasingly capping production at China’s smelters and refiners, potentially pushing consumers of refined metal back into international markets,” analysts at Bank of America said in a research note.

“At the same time, demand in the US and Europe should bounce back as economies bottom out; this, along with rising demand from the energy transition, will likely move the copper market into deficit this year,” they added.

Not everyone’s convinced copper prices will hold onto projected gains this year.

“Commodity markets always self-solve,” Colin Hamilton, commodities analyst at BMO Capital Markets, told CNBC’s “Street Signs Europe” on Tuesday.

“They always find ways of softening things out. If we can’t solve from the supply side, well guess what, we’ll hurt demand and that’s what inflation naturally does. That’s why we had underperformance for much of the past year,” Hamilton said.

“So, if copper gets say to let’s say four times the aluminum price, you would tend to see a bit of switching and substitution. I see some very high copper price targets out there: we could reach them temporarily, but then you would see demand adjusting in key areas.”

Source：CNBC

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Glendon

Economic

For much of 2022 and early 2023, inflation cast a long shadow over the global economy, eroding purchasing power and causing central banks to scramble. As we move through 2024, however, there's a growing consensus among economists and financial institutions that inflation will experience a significant decline. Let's delve deeper into the key factors driving this expectation and explore the potential implications, both positive and negative.

The Untangling of Supply Chain Knots

One of the primary culprits behind the recent inflation surge was the pandemic's brutal impact on global supply chains. Lockdowns, port congestion, and labor shortages disrupted the smooth flow of goods, creating shortages and driving prices skyward. The good news is that these bottlenecks are showing signs of easing. As factories ramp up production, shipping routes become more efficient, and labor markets stabilize, we can expect a more balanced supply-demand dynamic to emerge. This, in turn, should lead to a natural stabilization of prices, particularly for goods that were most affected by the initial disruptions.

The Fed Flexes Its Muscle

Central banks, particularly the Federal Reserve in the United States, have been wielding a powerful weapon in the fight against inflation: monetary policy tightening. By raising interest rates, the Fed makes borrowing more expensive for businesses and consumers. This discourages excessive borrowing and investment, ultimately leading to a slowdown in economic activity. While this can have a temporary dampening effect on economic growth, it also reduces demand for goods and services, putting downward pressure on prices. The Fed will be walking a tightrope in 2024, aiming to achieve a "soft landing" where inflation is controlled without triggering a recession.

The Consumer Calculus

Rising interest rates and potentially higher living costs are bound to influence consumer behavior. We may see a shift in spending habits, with a focus on essential goods and services like groceries and utilities. This could lead to a decrease in demand for non-essential items, further contributing to disinflationary pressures. However, it's important to note that consumer confidence also plays a crucial role. If economic anxieties rise or a recession materializes, it could lead to a sharper-than-anticipated decline in demand, impacting businesses and potentially hindering economic growth.

The Base Effect: A Statistical Nuance

Inflation is often measured year-over-year. Since inflation peaked in 2022, the year-over-year comparison in 2024 will naturally show a smaller increase, even if prices remain slightly elevated compared to pre-pandemic levels. This is a statistical phenomenon known as the base effect. It's important to consider inflation in the context of longer-term trends to get a clearer picture of the underlying price dynamics.

The Energy Equation: A Wild Card Factor

The ongoing war in Ukraine has undoubtedly cast a long shadow over global energy markets. The resulting price volatility has contributed significantly to inflation, particularly in transportation and utilities. While it's difficult to predict the future course of the conflict, any signs of resolution or the adoption of alternative energy sources on a larger scale could lead to a stabilization of energy prices, easing some of the inflationary pressures.

Beyond the Headlines: Potential Challenges

While the expectation is for inflation to fall in 2024, there are still uncertainties that could cloud the outlook:

Geopolitical Tensions: Continued geopolitical instability, beyond the Ukraine conflict, could disrupt supply chains or exacerbate energy price volatility, hindering progress on inflation reduction.

The Labor Market: A Delicate Balance: Wage growth is a double-edged sword. While it improves consumer purchasing power, it can also contribute to higher production costs and translate into persistent inflation if not managed effectively. Central banks will be closely monitoring wage growth trends in 2024 to ensure a sustainable economic recovery.

The Confidence Conundrum: Consumer and business confidence is crucial for a healthy economy. If economic anxieties rise or a recession occurs, it could lead to a sharper-than-anticipated decline in demand, impacting businesses and potentially hindering economic growth.

The Road Ahead: A Collaborative Effort

The fight against inflation requires a multi-pronged approach. Central banks will continue to monitor economic data and adjust interest rates as needed. Businesses might need to adapt their pricing strategies to a more moderate inflation environment. Consumers, on the other hand, may need to adjust their spending habits to accommodate a potential slowdown in wage growth.

Conclusion: A Brighter Horizon, But Vigilance Is Key

A significant decline in inflation in 2024 would bring much-needed relief to consumers and businesses alike. This would allow households to stretch their budgets further and provide businesses with a more stable economic environment for planning and investment. However, this positive outlook hinges on continued vigilance from policymakers, businesses, and consumers. By working together to navigate potential challenges and adapt to a changing economic landscape, we can achieve a more stable and predictable economic environment in the long run.

To stay updated on all economic events of today, please check out our Economic calendar

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WELLS FARGO

Economic

Central Bank

Summary

The Bank of Canada (BoC) held its policy interest rate steady at 5.00% at today’s monetary policy announcement, an outcome that was widely expected. However, the accompanying statement pointed to the potential for lower policy interest rates in the months ahead. BoC Governor Macklem said “we are seeing what we need to see” to lower policy interest rates, but that “we need to see it for longer to be confident that progress toward price stability will be sustained.” Macklem also said a June rate cut was within the realm of possibilities. Meanwhile, the BoC also lowered its CPI inflation forecasts, even as it upgraded its GDP growth forecasts.

While the outcome of the next monetary policy meeting in June is clearly data dependent, so long as core inflation remains contained and labor market trends subdued, we suspect that may be enough for the BoC to deliver an initial 25 bps policy rate cut at that meeting. We also forecast 25 bps rate cuts in July, September and October, for a cumulative 100 bps of rate reduction in 2024, which would see the policy rate end this year at 4.00%. Overall, we think the BoC will ultimately cut rates by more this year than currently expected by market participants over the rest of 2024. Moreover, with Bank of Canada easing this year likely to outpace that of the Federal Reserve, there is also potential for some further Canadian dollar weakness in the months ahead.

Bank of Canada Monetary Easing Door Slightly Ajar

The Bank of Canada (BoC) held its policy interest rate steady at 5.00% at today’s monetary policy announcement, an outcome that was widely expected. The BoC did not offer any clear guidance regarding the timing of monetary easing, but the details of the announcement nonetheless pointed to the potential for lower policy interest rates in the months ahead.

BoC Governor Macklem said the central bank has concluded that overall, data since January have increased confidence that inflation will continue to come down gradually even as economic activity strengthens. Of note, Macklem said “we are seeing what we need to see” to lower policy interest rates, but that “we need to see it for longer to be confident that progress toward price stability will be sustained.” The BoC said that labor market conditions continue to ease and that there are recent signs wage pressures are moderating, with many measures of wage growth now seen in a range of 3.5%-4.5%, down from 4%-5% previously.

On the more hawkish side, the BoC said cutting rates too soon could jeopardize the progress on inflation to date, and that its wants to see evidence downward momentum is sustained and that the recent decline in core inflation is not a temporary blip. The BoC also raised its estimate of the neutral policy interest rate by 25 bps to a range of 2.25%-3.25%, from a range of 2%-3% previously.

Clearly, the timing of potential Bank of Canada monetary easing is a balancing act, and the hawkish elements did come with some qualifiers. For example, Macklem also said we “don’t want to leave monetary policy this restrictive longer than we need to” and, in the post-meeting press conference he said that June was in the realm of possibility for rate cuts, and that the higher neutral rate does not impact “near-term” policy.

Finally, the BoC’s updated economic forecasts reflected the notion that stronger economic growth can co-exist with slowing inflation. There was a sharp upgrade to the 2024 GDP growth forecast to 1.5%, including a Q1 GDP growth forecast of 2.8% quarter-over-quarter annualized. In contrast, the 2025 GDP growth forecast was lowered only slightly to 2.2%. Meanwhile, the central bank lowered its inflation forecast for this year. Looking at the year-end (Q4/Q4) CPI inflation forecasts for 2024, 2025 and 2026, the BoC sees inflation at 2.2%, 2.1% and 2.1% respectively—only slightly above the 2% inflation target. Bank Of Canada Monetary Easing Door Slightly Ajar_1

Bank Of Canada Monetary Easing Door Slightly Ajar_1

In our view, the announcement suggests the BoC is comfortable with recent economic trends and that, should they continue, that will pave the way for monetary easing. With two more inflation reports and one more employment report ahead of the BoC’s 5 June announcement, so long as core inflation remains contained and labor market trends subdued, we suspect that may be enough for the BoC to deliver an initial policy rate cut at the June meeting.

Canadian Economic Trends Mixed in Early 2024

Canada’s economic trends have been mixed at the start of this year, though overall we believe they are consistent with easing price pressures, and thus Bank of Canada monetary easing in the months ahead. On the strong side, broader GDP growth firmed a bit around the turn of the year. Q4 GDP grew 1.0% quarter-over-quarter annualized, more than reversing its Q3 decline, with growth supported by consumer spending and exports. January GDP also rose 0.6% month-over-month, more than forecast, and Statistics Canada’s advance estimate is for February GDP to increase by 0.4%. Against this backdrop we have lifted our Canadian Q1 GDP growth forecast to 2.4% quarter-over-quarter annualized, with the risks around that forecast tilted toward a stronger outcome.

However, despite the stronger start to this year, there are still reasons to expect Canada’s economic growth to slow as the year progresses. The previous rise in interest rates means that the household debt service ratio, at 15.0% of disposable income, is at its highest level since 1990, which should be a headwind for the consumer moving forward. Elsewhere, although business sentiment and sales expectations improved slightly in Q1, they remain at subdued levels. A softening in Canada’s labor market also likely portends a slowing in GDP growth moving forward. Canadian employment unexpectedly declined by 2,200 in March, as full-time employment and part-time employment both fell, while the unemployment rate jumped more than expected to 6.1%. Bank Of Canada Monetary Easing Door Slightly Ajar_2

Bank Of Canada Monetary Easing Door Slightly Ajar_2

Inflation Pressures Are Gradually Ebbing

In contrast to the stronger economic growth seen early in 2024, there has been a noticeable slowing in inflation pressures early this year, an encouraging development for the Bank of Canada. CPI inflation surprised to the downside in both January and February, with headline and core inflation measures decelerating. For February, the headline CPI rose 2.8% year-over-year, while the average core CPI rose 3.2%. Significantly, however, underlying inflation pressures appear to be running closer to the central bank’s target over the most recent months, as the average core CPI rose by 2.2% on a three-month annualized basis in February. Bank Of Canada Monetary Easing Door Slightly Ajar_3

Bank Of Canada Monetary Easing Door Slightly Ajar_3

So long as inflation remains contained, we view the Bank of Canada as on course to deliver an initial 25 bps policy rate cut to 4.75% at its June monetary policy meeting. We also forecast 25 bps Bank of Canada rate cuts in July, September and October, for a cumulative 100 bps of rate reduction in 2024, which would see the policy rate end this year at 4.00%. We expect a steady pace of rate cuts to continue in 2025, forecasting a further cumulative 100 bps of rate reduction, which would see the policy rate end next year at 3.00%. Overall, we think the BoC will ultimately cut rates by more this year than the cumulative 63 bps of rate cuts priced in by market participants for the rest of 2024. Moreover, with Bank of Canada easing this year likely to outpace that of the Federal Reserve, there is also potential for some further Canadian dollar weakness in the months ahead. Bank Of Canada Monetary Easing Door Slightly Ajar_4

Bank Of Canada Monetary Easing Door Slightly Ajar_4

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Samantha Luan

Economic

The bump in the Federal Reserve’s path to lower inflation is looking more like a roadblock, throwing into doubt its plans for interest-rate cuts this year.

The figures out Wednesday mark the third-straight month in which a key gauge of US inflation exceeded economists’ expectations. Consumer prices excluding food and energy climbed 0.4% from February and 3.8% from a year earlier, the same as the month prior. Fed Faces 'Soft Deadline' For Rate Cuts As Inflation Progress Stalls_1

Fed Faces 'Soft Deadline' For Rate Cuts As Inflation Progress Stalls_1

Investors now see a chance of fewer than two interest-rate cuts this year, futures show. And while a narrow majority of Fed officials penciled in three or more reductions for in 2024, the stalling in inflation progress runs the risk of not only delaying future cuts but also limiting the Fed’s ability to cut at all.

“This marks the third consecutive strong reading and means that the stalled disinflationary narrative can no longer be called a blip,” said Seema Shah, chief global strategist at Principal Asset Management.

“In fact, even if inflation were to cool next month to a more comfortable reading, there is likely sufficient caution within the Fed now to mean that a July cut may also be a stretch, by which point the US election will begin to intrude with Fed decision making,” she said.

Some economists had started to opine that if the Fed doesn’t cut by June or July, reductions will likely need to be pushed out to 2025. That’s because annual inflation is set to make little progress in the second half of the year, as the figures are compared to a period in late 2023 when price pressures were rapidly easing.

“It is somewhat of a soft deadline and it would really complicate the picture for rate cuts,” said Matthew Luzzetti, chief US economist at Deutsche Bank. With inflation sticky and the economy resilient, “those conditions have combined for reducing the prospects of rate cuts this year.”

“Today’s data raise the probability of that outcome,” he said.

Fed Chair Jerome Powell and other policymakers have said they don’t want to start cutting rates until they have sufficient confidence that US inflation is headed to the central bank’s 2% target on a sustainable basis.

Officials have also pointed to the strength of the economy and labor market, which added more than 300,000 jobs in March, as reasons the Fed can afford to be patient with reductions. Powell said last month that the Fed wants to see “more good data” on inflation, but has been vague on details. Fed Faces 'Soft Deadline' For Rate Cuts As Inflation Progress Stalls_2

Fed Faces 'Soft Deadline' For Rate Cuts As Inflation Progress Stalls_2

The first three months of the year have been marked by worse-than-expected price reports. The Fed’s preferred gauge of underlying inflation, of which the March reading will be released later this month, was up 2.8% in February from a year earlier. The Federal Open Market Committee anticipates that gauge will fall to 2.6% by year’s end, according to policymakers’ latest quarterly projections.

“Essentially whatever the year-on-year inflation is by June is likely to be around that level at the end of the year,” said Michael Gapen, head of US economics at Bank of America Corp.

“The jump risk would be, if you don’t move in June,” he said, the first cut “could move from June to next March.”

Policymakers have held interest rates at a more than two decade high since July. Further details about the conversations held at the Fed’s two-day meeting in March will be released this afternoon.

Political Picture

While Fed officials have stressed the central bank makes decisions without regard to the political impact, cutting for the first time in September would invite heightened scrutiny ahead of the presidential election in November.

“One of Chair Powell’s responsibilities is to protect the public standing of the Fed,” said Vincent Reinhart, chief economist at Dreyfus and Mellon and a former top Fed staffer. “The closer the FOMC acts to the election, the more likely it is that the public will question the Fed’s intent, undermining its democratic legitimacy.”

The risk of such blow back was apparent Wednesday, when former President Donald Trump lashed out at the Fed following the inflation report.

“INFLATION is BACK—and RAGING!” he said on his Truth Social platform. “The Fed will never be able to credibly lower interest rates, because they want to protect the worst President in the history of the Untied States!”

Some economists don’t see the election holding back the Fed. Rather than annual inflation numbers, Powell and his colleagues could cite three-month and six-month averages of inflation to gain confidence that inflation is heading to its 2% target, said Diane Swonk, chief economist at KPMG LLP. She still expects the central bank to cut rates in the second half of the year, but acknowledged the March data was bad news for the Fed.

“One cut is quickly becoming the norm” for 2024, she said.

Source：Bloomberg

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Glendon

Economic

Investing can be a daunting task, especially in a market filled with uncertainties. However, selecting strong companies with robust fundamentals and promising prospects can provide investors with a level of security and potential for growth. Here is a list of ten companies that represent a diverse range of industries, each offering unique opportunities for investors.

1. Alphabet Inc. (GOOGL)

Alphabet continues to lead in innovation and market dominance. With a revenue increase of 12% in the last fiscal year and a robust expansion into cloud computing and artificial intelligence, Alphabet is capitalizing on high-growth sectors that are expected to drive future technology trends.

2. Discover Financial Services (DFS)

Discover Financial reported a net income of $3.9 billion in the last fiscal year, demonstrating strong profitability. The company benefits from a high net interest margin compared to industry averages, illustrating efficient credit and financial management.

3. Walt Disney Co. (DIS)

Despite recent market volatility, Disney has rebounded with its theme parks operating at increased capacity and revenue from its media networks seeing a 5% year-over-year growth. Disney+ also continues to expand, now boasting over 130 million subscribers globally.

4. PDD Holdings Inc. (PDD)

PDD Holdings has shown impressive growth in China’s e-commerce sector, with a 25% increase in annual revenue. The company’s active buyer base has expanded to over 850 million, demonstrating its vast reach and penetration in the Chinese market.

5. Occidental Petroleum Corp. (OXY)

Occidental Petroleum has capitalized on rising oil prices, with recent quarterly earnings showing a 30% increase year-over-year. Strategic asset acquisitions have also positioned it well for benefiting from global energy demands.

6. Match Group Inc. (MTCH)

Match Group has seen a subscriber growth of 15% year-over-year across its various platforms. This growth is driven by increasing global acceptance of online dating and innovative features enhancing user engagement.

7. Grupo Aeroportuario del Sureste SAB de CV (ASR)

ASR reported a 20% increase in passenger traffic across its airport networks, underscoring robust recovery in air travel post-pandemic. The company's strategic locations in tourist-centric regions contribute to its strong performance.

8. Target Corp. (TGT)

Target’s latest earnings report highlighted a 5% year-over-year growth in revenue, driven by an increase in both in-store and online sales. The retailer's investment in digital infrastructure and same-day services has significantly enhanced its consumer reach and satisfaction.

9. Pimco 25+ Year Zero Coupon U.S. Treasury Index ETF (ZROZ)

ZROZ offers a unique investment proposition in long-term U.S. Treasury bonds, which have seen an increase in value as investors seek safe-haven assets amid economic uncertainties. The ETF’s performance has mirrored the stability of U.S. government securities, making it a reliable investment during volatile times.

10. Citigroup Inc. (C)

Citigroup has reported a stable financial performance with a 4% year-over-year growth in global consumer banking. The bank’s strategic restructuring and focus on high-margin business segments have positioned it for improved profitability and risk management.

Ratings and Price Predictions:

Company	Earnings Growth Rate	Debt-to-Equity Ratio	ROE	P/E Ratio	Dividend Yield	Capital Allocation Rating	Market Position	Price Prediction 2024	Price Prediction 2025	Price Prediction 2030
Alphabet Inc. (GOOGL)	High	Low	High	High	Low	Excellent	Strong	$145	$160	$250
Discover Financial Services (DFS)	Moderate	Moderate	High	Moderate	Moderate	Good	Strong	$115	$130	$180
Walt Disney Co. (DIS)	Moderate	High	Moderate	High	Moderate	Good	Strong	$110	$125	$200
PDD Holdings Inc. (PDD)	High	Low	High	High	None	Good	Strong	$95	$110	$180
Occidental Petroleum Corp. (OXY)	High	High	Moderate	Low	High	Good	Moderate	$55	$70	$120
Match Group Inc. (MTCH)	Moderate	Low	Moderate	High	None	Good	Strong	$85	$100	$150
Grupo Aeroportuario del Sureste SAB de CV (ASR)	Moderate	Moderate	High	Moderate	High	Excellent	Strong	$180	$200	$300
Target Corp. (TGT)	Moderate	Moderate	High	High	Excellent	Strong	Moderate	$75	$85	$130
Pimco 25+ Year Zero Coupon U.S. Treasury Index ETF (ZROZ)	Low	N/A	N/A	Low	High	Good	N/A	$125	$130	$150
Citigroup Inc. (C)	Low	High	Low	Low	High	Good	Moderate	$45	$50	$75

This HTML table structure includes headers for each of the columns and rows for each company with the respective data. You can copy and paste this code into an HTML file to view it in a web browser or integrate it into a web page.

Conclusion

These ten companies not only demonstrate strong financial health but also hold positions in industries with substantial growth trajectories. By investing in these diverse sectors—from technology and financial services to entertainment and energy—investors can potentially achieve significant returns and portfolio stability. Each company's recent financial data and market performance underscore their attractiveness as investment opportunities in 2024.

To stay updated on all economic events of today, please check out our Economic calendar

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Glendon

Economic

In today's investment climate, where market volatility can be unsettling, dividend stocks offer a compelling option for income-focused investors. These stocks provide a regular stream of cash flow through dividend payments, which can act as a buffer against market downturns and contribute to your overall investment returns.

But with countless publicly traded companies, how do you choose the best dividend stocks? Here, we'll explore ten of the most attractive dividend stocks for 2024, along with key factors to consider when making your investment decisions.

Top 10 Dividend Stocks for 2024

Verizon Communications (VZ)

Verizon, a telecommunications giant, boasts a hefty dividend yield of over 6%. The company has a strong track record of increasing dividends and is undervalued according to some analysts, suggesting potential for future price appreciation alongside its steady payouts.

Johnson & Johnson (JNJ)

A healthcare leader, JNJ offers a solid dividend yield of around 3.4% with a long history of dividend growth. The company's diversified business model across pharmaceuticals, medical devices, and consumer health products provides stability and resilience.

Philip Morris International (PM)

PM, a tobacco company, yields over 5.5%, making it a high-income option. While the tobacco industry faces challenges, PM's established international presence and consistent dividend growth make it a contender for income investors.

Altria Group (MO)

Similar to PM, Altria offers a high dividend yield exceeding 7.5%. The company's focus on smokeless tobacco products positions it for potential growth alongside its substantial dividend payouts.

Comcast Corporation (CMCSA)

A telecommunications and media giant, Comcast provides a dividend yield of over 3%. The company's strong cash flow and dominant market position in cable and internet services make it a reliable dividend payer.

Medtronic (MDT)

A medical device manufacturer, Medtronic offers a dividend yield of over 2.5%. The company's focus on innovation and growing demand for medical devices suggest potential for long-term growth alongside its steady dividend.

Pioneer Natural Resources (PXD)

An oil and gas exploration company, PXD yields over 8.5%, making it a high-income option in the energy sector. However, keep in mind that commodity prices can be volatile, and so can PXD's stock price and dividend.

Duke Energy (DUK)

A utility company, Duke Energy offers a dividend yield of over 4%. Utility companies generally provide stable dividends due to their predictable cash flow from providing essential services.

Coca-Cola Company (KO)

A beverage giant, Coca-Cola offers a dividend yield of over 3%. KO's brand recognition and global presence ensure steady demand for its products, translating to reliable dividend payouts.

First American Financial Corporation (FAF)

A leading provider of title insurance and other real estate settlement services, FAF offers a dividend yield of over 3.5%. The housing market significantly impacts FAF, but the company has a history of maintaining its dividend.

Factors to Consider When Choosing Dividend Stocks

Dividend Yield: The percentage of a company's stock price paid out as dividends each year. While a high yield is attractive, prioritize companies with a sustainable dividend history.

Dividend Growth: Look for companies with a history of increasing their dividends over time. This indicates a healthy financial situation and a commitment to rewarding shareholders.

Financial Strength: Evaluate a company's financial health, including profitability, debt levels, and cash flow. A strong financial foundation ensures the company can maintain its dividend payments.

Industry Outlook: Consider the long-term prospects of the industry the company operates in. Choose companies in growing industries with favorable tailwinds.

Investment Goals: Align your dividend stock selection with your overall investment goals. Consider factors like your risk tolerance, time horizon, and desired income stream.

Remember: Dividend investing is a long-term strategy. Conduct thorough research before investing in any stock, and consider seeking professional financial advice to tailor your investment choices to your specific circumstances.

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Risk Warnings and Disclaimers

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Data

The Commodities Feed: CPI Data Weighs On Parts Of The Complex

Energy – Oil up despite bearish inventory report

Metals – CPI data weighs on the complex

Agriculture – WASDE release

Copper Prices Climb To 2024 High As Citi Calls The Start Of The Metal’s Second Bull Market This Century

‘Commodity markets always self-solve’

Source：CNBC

Inflation in 2024: From Sizzle to Simmer

The Untangling of Supply Chain Knots

The Fed Flexes Its Muscle

The Consumer Calculus

The Base Effect: A Statistical Nuance

The Energy Equation: A Wild Card Factor

Beyond the Headlines: Potential Challenges

The Road Ahead: A Collaborative Effort

Conclusion: A Brighter Horizon, But Vigilance Is Key

Bank Of Canada Monetary Easing Door Slightly Ajar

Summary

Bank of Canada Monetary Easing Door Slightly Ajar

Canadian Economic Trends Mixed in Early 2024

Inflation Pressures Are Gradually Ebbing

Fed Faces 'Soft Deadline' For Rate Cuts As Inflation Progress Stalls

Political Picture

Source：Bloomberg

The 10 Best Companies to Invest

1. Alphabet Inc. (GOOGL)

2. Discover Financial Services (DFS)

3. Walt Disney Co. (DIS)

4. PDD Holdings Inc. (PDD)

5. Occidental Petroleum Corp. (OXY)

6. Match Group Inc. (MTCH)

7. Grupo Aeroportuario del Sureste SAB de CV (ASR)

8. Target Corp. (TGT)

9. Pimco 25+ Year Zero Coupon U.S. Treasury Index ETF (ZROZ)

10. Citigroup Inc. (C)

Ratings and Price Predictions:

Conclusion

The 10 Best Dividend Stocks for Income-Focused Investors in 2024

Top 10 Dividend Stocks for 2024

Verizon Communications (VZ)

Johnson & Johnson (JNJ)

Philip Morris International (PM)

Altria Group (MO)

Comcast Corporation (CMCSA)

Medtronic (MDT)

Pioneer Natural Resources (PXD)

Duke Energy (DUK)

Coca-Cola Company (KO)

First American Financial Corporation (FAF)

Factors to Consider When Choosing Dividend Stocks

Risk Disclosure