A soft reading from Wednesday’s consumer price index report for May sent U.S. equities on a tear. The overall inflation reading from the Bureau of Labor Statistics came in flat, marking the first time in nearly two years. The drop in prices was largely related to a sizable fall in gas prices. Moreover, the core consumer price index, which excludes volatility from food and energy prices, only ticked up 0.2% on a sequential basis, which was below most estimates from economists. From a year-over-year perspective, prices rose 3.3% while the core rose 3.4%, the lowest the figure has been since April 2021.
On the same day, U.S. Federal Reserve officials released a new dot plot with their rates forecast. It indicated only a single 0.25% rate cut versus the three we had seen in a previous forecast back in December. That is to say, the Fed is still remaining cautious, but the market is finding reason to celebrate. The S&P500 and tech-heavy Nasdaq Composite have reached new highs: the former gaining 14.5% for the year, while the latter climbed 18.8%.
A broad surge in stock prices creates a fertile ground for short-term lucrative bets. Below are three of the best stocks to buy in June for the short term.
Palantir (PLTR)
Peter Thiel-cofounded data analytics giant Palantir (NYSE:PLTR) has, for the most part, had a decent trading session in 2024. As of the end of trading on Wednesday, PLTR rallied about 37.3% on a year-to-date basis. The stock appeared to be on a meteoric rally in the first quarter but has leveled off.
Investors are awaiting more news on the growth of the firm’s new AI Platform (AIP). Palantir released AIP in the second quarter of 2023, and the financials for its commercial business were extremely positive as a result. In essence, AIP embeds large language models (LLMs) into existing software products, Gotham and Foundry, in order to help enterprises gain critical insights from the data those products process.
Unfortunately, a weak guidance reading from Palantir’s first-quarter earnings report for 2024 put shares of the data analytics firm into a sort of lull. The good reading from Wednesday’s CPI report could help to revitalize the momentum Palantir’s stock had at the beginning of the year. However, the long-term potential of AIP will determine how PLTR will perform in the following quarters.
Tesla (TSLA)
Tesla (NASDAQ:TSLA) shares have had a terrible year. The U.S.-based electric vehicle (EV) behemoth, with polemic figure Elon Musk at the helm, has experienced a cataclysmic 27% plummet in its share price since the start of this year’s trading session. Even when Musk warned investors about a deceleration of the EV maker’s growth in 2024, nothing could have prepared investors for Tesla’s worst-performing Q1 in years. In particular, Tesla delivered 386,810 vehicles in the first quarter, representing an 8.5% year-over-year drop.
All the while, Chinese EV competitors, including BYD (OTCMKTS:BYDDY), Li Auto (NASDAQ:LI) and even mobile handset manufacturer Xiaomi (OTCMKTS:XIACY), are giving the U.S. automaker a run for its money. In May, Tesla continued to lose ground in China, its second-largest market, due to the intensifying competition there.
There may be a silver lining for TSLA shareholders, though. Signs of moderating inflation could help shares recover. Not to mention, Tesla is still a well-known name in the stock market, and retail investors will probably clamor to buy up shares this summer, creating a viable opportunity to generate short-term returns.
Apple (AAPL)
Apple (NASDAQ:AAPL) is another tech giant that did not start the year off great. The iPhone maker shares have fallen as much as 15% in 2024, though it has recovered since then. Ongoing woes in China, the tech firm’s second largest market that has seen competition intensify with the resurgence of Huawei, coupled with an over-saturated handset market have slowed down top-line growth. The company and its shareholders are betting that AI will somehow pull Apple out of its doldrum.
This week, besides the CPI report, Apple’s Worldwide Developers Conference (WWDC) captured headlines. The iPhone maker unveiled a partnership with OpenAI, the startup behind ChatGPT and the advanced LLMs running it, and a new set of features under Apple Intelligence. This new technology suite will help users summarize text, create original images and retrieve relevant data. After the announcement, AAPL soared more than 7%, and subsequent near-term gains are possible, especially with an improving macro environment.
On the date of publication, Tyrik Torres did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
