Japan trade, Japan household spending

A bumpy few months for mega caps like the “Magnificent Seven” have led some investors to question whether now is the best time to be buying growth stocks.

One investor says growth stocks still offer opportunities — but it’s time to get selective.

“Growth stocks will continue to outperform value stocks, generally speaking. But valuations are stretched so we are looking for higher quality names,” Adam Coons, portfolio manager at Winthrop Capital Management, told CNBC Pro on May. 1.

Coons named three of his favorite under-the-radar growth stocks to consider.

CNBC Pro subscribers can read more here.

—Amala Balakrishner

Customers shop at a Costco store in Novato, California.

Justin Sullivan | Getty Images News | Getty Images

Stocks have come under pressure this quarter after a string of hotter inflation reports spurred investor concerns the Federal Reserve will stay higher for longer, with rate cut expectations coming down to just two for the year starting in September.

However, UBS anticipates upcoming inflation data will start to trend lower, starting with the April’s Consumer Price Index (CPI) that’s set for release next week. The firm cited recent data indicating moderating housing costs, and lower consumer spending going forward.

“We expect a renewed fall in US inflation in the coming months,” UBS’ Solita Marcelli wrote on Thursday. “Investors are expecting April’s Consumer Price Index (CPI) to show that the trend toward slowing inflation—which was interrupted in the first quarter of the year—is resuming.”

“Our view is that inflation will start heading back to the Fed’s 2% target in the coming months,” Marcelli said.

—Sarah Min

John Waldron, president and Chief Operating Officer of Goldman Sachs, speaks during the Goldman Sachs Investor Day at Goldman Sachs Headquarters in New York City, US

Brendan Mcdermid | Reuters

A soft landing is still plausible despite some hiccups along the way, according to Goldman Sachs president and COO John Waldron.

“We’re still subscribers to, generally speaking, a soft landing scenario,” Waldron told CNBC on Thursday.

“I would say soft landing doesn’t mean everything is perfect and it lands on a nice soft pillow,” he added. “Sometimes you have fits and starts in a soft landing. I think that’s what we’re seeing right now.”

—Brian Evans

Precious metal mining stocks are presently consolidating “after big runs earlier this year,” and ETFs such as the VanEck Gold Miners ETF “look particularly attractive to us here,” BTIG’s chief market technician Jonathan Krinsky wrote to clients Thursday.

The gold miners’ ETF rallied nearly 40% in the short span from early March to mid-April, “breaking out above a one-year base,” Krinsky said. “It now looks poised to resume its uptrend with a measured move towards $38-$40.” Compared to the S&P 500 in 2024, the GDX ETF is outperforming some 3.5 percentage points, BTIG said.

The Materials Select Sector SPDR Fund, comprised of other minerals minerds and chemical makers, among ohers, hasn’t performed as well as GDX lately, Krinsky said, although he said individual stocks such as Dow Inc. have “a very constructive [price] chart.”

See Chart…

Gold miners ETF since the end of February.

Scott Olson | Getty Images

Papa John’s is the latest restaurant to report sluggish sales. The pizza chain saw a weaker-than-expected 1.8% same-store-sales decline. That was a contrast to what one of its competitors said a couple weeks ago. A stronger-than-expected 5.6% same-store sales increase from Domino’s was an industry outlier thanks to the successful revamp of its loyalty program.

But even as the restaurant industry has widely struggled to start the year, another bright spot surfaced this morning. People are buying up donuts. Krispy Kreme saw a nearly 7% jump in organic sales as revenues came in higher than expected. It cited “increased digital sales and strong consumer demand” amid successful event-centric campaigns surrounding the Valentine’s Day and St. Patrick’s Day holidays.

— Robert Hum