Breakfast News: ‘Super-Bullish’ On Stocks

Markets have pulled back ahead of today’s Federal Reserve interest rate decision, but investors are still extremely confident in stocks compared to cash. A Bank of America (BAC 0.28%) fund manager survey found “the largest underweight position for currency compared with stocks since at least 2001.” BoA’s Michael Hartnett declared the data “shows super-bullish sentiment.”

We might have to pay more for our chocolate and coffee in future, as the price of cocoa has rocketed this year. Cocoa futures hit a record high of $11,925 per tonne, nearly tripling since the start of the year. It’s all down to the weather in West Africa, which accounts for more than 70% of world production.

• “Prospects for the 2024/25 marketing year are looking better”: Warren Patterson at ING still sees further high – and volatile – prices.
• Highest prices since 1977: Coffee has been hit by the same conditions, and Rabobank’s Carlos Mera told CNBC we could be on for record prices.  

Semiconductor memory and storage provider Micron Technology (MU -2.45%) will deliver Q1 results after today’s market close. It’s beaten earnings estimates for the previous four quarters, and investors will be looking to see if it can hit its $8.5-$8.9 billion revenue guidance.

• Morning results: Dividend Investor recommendation Toro (TTC 1.14%) will post an earnings update before the bell, as will General Mills (GIS 0.13%). The consumer goods giant has reported revenue declines this year. 
• Dividend raised for 16 consecutive years: Fool analyst Matt Argersinger notes “It's been a challenging 18 months or so for Toro, which has seen consumers pull back their spending on big-ticket items like riding lawnmowers. Fortunately, the company's golf course and construction equipment businesses have held up better.”