Among the magnificent 7, Amazon.com’s (AMZN) big insider sales are noteworthy. Jeff Bezos sold another 14 million shares. This ends his trading plan of selling 50 million shares. Investors should not ignore Bezos’s selling, since he was once a successful hedge fund manager. He would not sell shares if he believed there was at least 25% more upside.
Often overlooked, Bausch Health’s (BHC) spinoff firm, Bausch + Lomb (BLCO), gained 13.78% on Wednesday. It posted revenue of $4.1 billion in 2023, up by 10% Y/Y.
Neglected for its underperformance, oil stocks are out of favor. Crude oil futures lost over 1% on Tuesday. On Wed., WTI crude prices rebounded to around $78. Energy investors picked up shares of Antero Resources (AR) in response. Occidental Petroleum (OXY) and Devon Energy (DVN) also have the potential to snap back on higher crude prices.
No March Rate Cut
After building an impressive rally that began in Sept. 2023, markets are forgetting that the March 2024 rate cut expectation fueled the rise. According to the Federal Reserve’s January meeting minutes, most policymakers expressed concerns about too soon a rate cut. The earliest rate cut is now in June.
The delay already hurt REITs like Realty Income (O) and W.P. Carey (WPC). Telecom firms like Verizon (VZ) and AT&T (T) pulled back, while T-Mobile TMUS) closed near a fresh high.
Be wary of weak market rallies. Sentiments could turn negative as high interest rates lower the attractiveness of overpriced stocks.
