Stock Market Today: Top Teen Spending Spots


There were numerous trade-related headlines in the stock market today. When combined with comments from Federal Reserve Chairman Jerome Powell, it made for a busy back-and-forth session on Tuesday.

Stock Market Today

Rather than regurgitate the latest trade spat headlines, let’s look at something more interesting: where teens are spending their money.

According to Piper Jaffray, which published its 38th semi-annual report, Generation Z is responsible for billions in annual retail sales. However, according to its Taking Stock with Teens report, teen spending hit its lowest point in eight years, declining more than 4% year-over-year and more than 10% sequentially.

Teen Trends

That’s not exactly what one might expect given the strong labor market and low unemployment rate. Low-wage hourly jobs are consistently filled in the current economy, putting plenty of spending money in teens’ pocket.

In any regard, men say they are spending more on food lately. Women are spending more on food and footwear, while spending less on cosmetics. We saw that after the disastrous quarter from Ulta Beauty (NASDAQ:ULTA), although Ulta still ranks highly among teens.

So do brands like Nike (NYSE:NKE), Under Armour (NYSE:UAA), Lululemon Athletica (NASDAQ:LULU) and Adidas, which were all on the rise, while Ralph Lauren (NYSE:RL), Sperry and others were on the decline.

Starbucks (NASDAQ:SBUX) remains a constant top-spot among teens, while Chick-Fil-A took top honors in the restaurant category. Netflix (NASDAQ:NFLX), American Eagle Outfitters (NYSE:AEO) and video game stocks also ranked well.

See the rest of the results, here.

Movers in the Stock Market Today

Shares of FedEx (NYSE:FDX) have not been doing well, hovering just above 52-week lows. That’s not stopping management from looking for solutions, though. The company plans to offer drop-off returns at thousands of Walgreens (NASDAQ:WBA) locations beginning next month.

It’s hope is that the move is more convenient for customers, as well as more efficient for FDX. It’s somewhat reminiscent of what Amazon (NASDAQ:AMZN) has done with Kohl’s (NYSE:KSS).

Boeing (NYSE:BA) shares initially fell on Tuesday after reports from the Wall Street Journal suggested the grounding of 737 MAX could go on longer than expected. Europe’s air safety regulator may want more proof that the jet is safe for passengers. Year-to-date deliveries for BA are down by almost 50% against the same period last year, as Airbus (OTCMKTS:EADSY) further cements its 2019 lead.

Nio (NYSE:NIO) shares, which recently hit a 52-week low at $1.19, exploded almost 11% on Tuesday after better-than-expected delivery results. Nio reported that it delivered 4,799 vehicles in the quarter, about 500 more than the midpoint of management’s prior guidance.

Sony (NYSE:SNE) announced that the PlayStation 5 will be hitting stores for the 2020 holidays. So far, the company seems focused on overhauling the technology within the controller.

Domino’s Pizza (NYSE:DPZ) surprisingly rallied 4.7% after reporting its third-quarter results. Earnings, revenue and same-store sales all missed the mark, although the company announced a $1 billion buyback. For a company with a $10.4 billion market cap, that’s rather significant.

DPZ was one of our Top Stock Trades on Tuesday.

Heard on the Street

Jefferies took its position on the bullish bandwagon for Microsoft (NASDAQ:MSFT). It joins a few other analysts with a $160 price target, after raising the stock from hold to buy. The target implies about 16% upside from current levels.

Further though, Jefferies also lowered its rating on Oracle (NYSE:ORCL) to hold and assigned a $60 price target. The target still implies more than 10% upside.

Raymond James analysts called Target (NYSE:TGT) a “strong buy” on Tuesday. They also slapped a $130 price target on the name, implying roughly 20% upside in the share price. TGT was also in the Top Stock Trades column.

Finally, new issue Cloudflare (NYSE:NET) received several new ratings on the day. It was relatively mixed, with rating between “hold” and “buy.” On the plus side though, there weren’t any sell-equivalent ratings.

JPM Securities and Needham analysts both rated NET as a “buy” with a $22 price target, while SunTrust Robinson Humphrey and Oppenheimer both used a buy-equivalent rating and $23 price target. Splitting the difference, Wells Fargo also rated it a buy-equivalent with a $22.50 price target, while RBC rated NET a “buy” with a $20 price target.

Morgan Stanley, Goldman Sachs and Jefferies rated Cloudflare with a hold-equivalent rating. Price targets were set at $18, $20 and $18, respectively.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities.

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