Stocks like Nvidia, Amazon, and Bank of America are worth watching after cooler PCE data.

From Nasdaq: 2024-06-28 19:00:00

The Personal Consumption Expenditures (PCE) Price Index monitors changes in US consumer goods and services prices. Core PCE excludes volatile items like food and energy, acting as the Fed’s preferred inflation gauge. May’s Core PCE rose 0.1% compared to a 0.3% increase in April, with a 2.6% increase year over year.

Nvidia, a leader in AI chip production, has seen a positive trend in earnings estimates following a 10-1 stock split on June 10. Amazon’s stock spiked 10% this month, while Bank of America benefits from lower operating costs and a stable inflationary environment, boasting a Zacks Rank #2 (Buy).

Bank of America sports a 2.45% annual dividend yield, trailing Citigroup’s 3.44%. Despite trading at a slight P/E discount, its earnings estimates for FY24 and FY25 are slightly up. Nvidia, Amazon, and Bank of America are three stocks to watch as core PCE numbers indicate a favorable environment for businesses and the economy.



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