⚰️ The Recession Is Dead Says...?

Good morning. US stock futures fell in Wednesday morning trading as investors look ahead to the minutes from the Federal Reserve’s January meeting, seeking further insight on where the central bank stands on rates.

📈 Recession call comes to an end

📝 Our report: Looks like the Conference Board is pulling a U-turn on their predictions! They've ditched their long-standing forecast of the U.S. economy taking a nosedive into recession, though its Leading Economic Index still sees economic output flatlining in the months ahead.  

 🔑 Key points:

• The Conference Board first announced in July 2022 that the index signaled a recession was coming. It had repeated that forecast with each month's report until its release for January, even as U.S. economic output, job creation and consumer spending all continued at above-trend levels throughout and no recession has materialized.

• The largest positive contributor to the turn from a recession forecast came from the recent surge in stock prices to record highs. The benchmark S&P 500 index has risen by more than 20% since late October after signals from the Federal Reserve that its aggressive interest rate cycle aimed at containing inflation is over and that rate cuts are expected this year.

• Persistently low numbers of new filings for unemployment benefits and measures of future credit availability, home building permits and new orders of manufactured goods also contributed to the change in the outlook.

💡 So what: The Conference Board's decision to retract its recession prediction holds significance for the US economy on multiple fronts. It can positively impact consumer and business confidence by alleviating concerns about an impending downturn, potentially spurring spending and investment. Market sentiment may improve, leading to increased stability and possibly higher stock prices. In essence, the Conference Board's reversal can influence various aspects of economic behavior and outlook, potentially shaping the trajectory of the US economy in the near term.

Wednesday - Minutes of Fed’s January FOMC Meeting, Fed Governor Michelle Bowman Speaks

Thursday - Existing Home Sales, Initial Jobless Claims

Friday - No Major Economic News

💸 Joel Tillinghast shares these traits of successful investors

💳 Here’s how you can pay off your credit card debt

💰 New or used? Follow these tips to decide which you should buy!

 📈 Get 5.1% APY For Your Extra Cash

Many of you ask where we’re putting our extra cash to earn the highest interest while still having access to it.

I’ve looked through plenty of high yield options and my top pick is Moomoo. It’s offering one of the highest yields available today at 5.1% APY.

And the best part? No minimum deposits, no cap on interests, and you can withdraw your cash at anytime.

Moomoo is offering Daily Market Briefs subscribers a limited-time deal: earn 5.1% APY on your cash and get up to 15 free stocks.

PS: Despite the funny name, Moomoo is a registered broker dealer with the SEC and is a member of SIPC meaning you’re insured up to $500,000.

✈️ Those airline fees are about to go up…

WHAT: American Airlines is upping the ante on bag-checking fees and throwing in some other tweaks to nudge customers into buying tickets straight from the airline if they want to rack up those precious frequent-flyer points. The airline said that checking a bag on a domestic flight will rise from $30 now to $35 online and $40 if purchased at the airport. The fee for a second checked bag will rise from $40 to $45 both online and at the airport.

WHY: American introduced bag fees in 2008 — $15 back then — to cope with the rising cost of jet fuel. Since then, they have become a steady revenue source for most major U.S. carriers. American easily led the industry by raising $1.4 billion in bag fees in 2022, the last year for which U.S. Transportation Department figures are available.

🪓 Supermarket acquisition faces regulatory roadblock

WHAT: Hold onto your shopping carts! The United States Federal Trade Commission and a bunch of states might be gearing up to crash Kroger's party as soon as next week, aiming to block their grand $24.6 billion plan to gobble up their smaller buddy Albertsons, at least according to some whispers from Bloomberg News.

WHY: The companies are working to schedule meetings with the FTC to persuade the agency to not sue over their merger, Bloomberg's report said. The states of Colorado and Washington have already sued to block the deal, which has raised anti-trust concerns over higher prices for consumers, store closures and loss of jobs.

🎰 US casinos clock record earnings in 2023

WHAT: Talk about hitting the jackpot! America's commercial casinos cashed in a whopping $66.5 billion from eager gamblers in 2023, marking their best year ever, according to the latest figures released by the American Gaming Association. The association said the figures were 10% higher than in 2022, which itself was a record-setting year.

WHY: Casinos paid an estimated $14.42 billion in gambling taxes last year, up 9.7% from the previous year. Nevada remains the nation's top gambling market, with $15.5 billion in revenue. Pennsylvania is second at $5.86 billion, followed closely by Atlantic City at $5.77 billion.

✏️ DMB Insider Quiz ✏️

🧑‍💻 We read your emails and poll replies daily.

Hit reply and let us know what you want more of!

See ya next time, Daily Market Briefs