Tech stocks were hurt the most as Fed continues to maintain hawkish stance
The Federal Reserve raised interest rates by 75 basis points for the fourth straight time at its November policy meeting. While the Fed Chair Jerome Powell considered pausing rate hikes “very premature”, he also hinted at small increases going forward.
Investors now look forward to the much anticipated consumer inflation data due this week.
- Starbucks is brewing strong results
- Etsy’s ecstatic earnings
- Boeing shares take off, higher deliveries expected
Starbucks is brewing strong results
Starbucks (SBUX) reported quarterly results on Thursday that beat market expectations on topline and bottomline as Americans spent more on their orders. Moreover, the coffee chain saw traffic at its U.S. stores nearing pre-pandemic levels during the quarter.
Starbucks shares jumped 8.5% on the upbeat earnings.
- Analyst rating: The overall consensus on Starbucks stock is a “Moderate Buy”, based on 23 analyst ratings, with an average price target of $100.35.
- Future outlook: Starbucks plans to withstand a potential economic downturn by tapping into its young and wealthy customer base.
Etsy’s ecstatic earnings
Etsy’s (ETSY) third-quarter earnings and revenue surpassed Wall Street expectations, helped by its decision to hike the transaction fees it charges the sellers on its platform. As a result, the online marketplace saw its quarterly revenue increase by 11.7% from a year ago.
Etsy shares jumped 14.3% after the positive update.
- Analyst rating: The overall consensus on Etsy stock is a “Moderate Buy”, based on 13 analyst ratings, with an average price target of $116.83.
- Future outlook: Etsy expects revenue in the range of $700 million to $780 million in the fourth quarter.
Boeing shares take off, higher deliveries expected
Boeing (BA) shares soared 12.8% through the last week as the planemaker said it plans to increase production and deliveries of new aircraft. The company also anticipates free cash flow in the range of $3 billion to $5 billion in 2023.
- Analyst rating: The overall consensus on Boeing stock is a “Moderate Buy”, based on 14 analyst ratings, with an average price target of $190.85.
- Future outlook: According to StreetAccount, Boeing is expected to have a free cash flow of $10 billion by 2025-2026.