The Personal Consumption Expenditure (PCE) index came in as expected. That didn’t do much to move the market higher, but it may be enough to keep the momentum in equities going.
But which equities? If you look closely, some questions remain. Approximately 60% of stocks in the S&P 500 are flat or lower for the year. That reinforces the fact that this is a narrow rally. However, will that show up when companies report earnings?
Investors will have to wait another couple of weeks before earnings season kicks off. In the meantime, next week is likely to be quiet, with markets closed on Thursday for the Fourth of July and lighter trading volume around the holiday.
As you enjoy your holiday plans, you can count on the MarketBeat team to provide the analysis you need when you return to trading and investing. Here are some of our most popular articles from this week.
Articles by Jea Yu
Many investors are using options strategies to help them navigate a tricky market. As part of our Learn series for investors, Jea Yu outlined three winning Options Strategies that traders can use to trade a stock that is in an uptrend in a rising market.
Yu also wrote about the opportunity that exists for Bloom Energy Corp. (NYSE: BE) as the need for data centers expands. Data centers are becoming an ideal application for Bloom Energy’s solid oxide fuel cell (SOFC) technology, but Yu explains why it may take some time for that advantage to show up in the company’s financials.
Yu also explained how investors may want to approach United States Steel Co. (NYSE: X) as Congress reviews Nippon Steel’s plan to acquire the company. Although the price action in X stock suggests the acquisition will be blocked, Yu explains why traders may want to take a bullish bet on the deal’s approval.
Articles by Thomas Hughes
Expectations are that the market will have a strong rally in the second half of the year, fueled by rising earnings. If that’s the case, what sectors are likely to do well? That's the question that Thomas Hughes took on this week when giving investors the Top 3 Booming Sectors that could start catching a bid this summer.
One of the big stories this week came from Chipotle Mexican Grill Inc. (NYSE: CMG), which began trading at its split-adjusted price. Hughes took on the issue of where CMG stock will go from here. With the company continuing to draw bullish customer and investor sentiment, Hughes explained why that move will likely be higher.
Nike Inc. (NYSE: NKE) shareholders could only hope for positive investor sentiment. As Hughes writes, despite “good enough” earnings, NKE stock is testing new lows on weak guidance. Hughes points out that investors need to decide if the stock is now so bad it’s good or if investors need to hear more from the company.
Articles by Sam Quirke
In a market where the winners are still made up of a small fraction of stocks, Microsoft Corp. (NASDAQ: MSFT) is one of the winners. The founding member of the Magnificent 7 saw its stock soar to another record high this week. And Sam Quirke explains why, after a bullish upgrade, there’s still a lot more magnificence that’s likely to come from MSFT stock.
Sticking with technology stocks, Quirke analyzed Amazon.com Inc. (NASDAQ: AMZN). This is another stock that’s been outperforming the market, and Quirke outlines three reasons why the stock may not be done yet.
One stock that hasn’t been performing well this year is Tesla Inc. (NASDAQ: TSLA). Despite growing risk-on sentiment in the market, which is usually bullish for a company like Tesla, the stock is down over 20% for the year. However, Quirke explains why the tide may be turning and that it may be time for investors to take a closer look at TSLA stock.
Articles by Ryan Hasson
While some people believe the stock rally may be just getting started, Ryan Hasson was taking the other side of the debate. This week, Hasson suggests that the recent pullback in NVIDIA Corp. (NASDAQ: NVDA) combined with the narrow breadth of the market may indicate that the summer market rally may be over before it started.
If the market is going to go through a correction phase, Hasson suggests that investors may want to avoid CAVA Group Inc. (NASDAQ: CAVA). The Mediterranean fast-casual chain has taken the market by storm, shooting up 113% in the last year. However, as Hasson writes, analyst sentiment suggests that investors may want to wait for a pullback before getting involved with CAVA stock.
Articles by Gabriel Osorio-Mazilli
Gabriel Osorio-Mazilli also examined the recent price action in NVIDIA. However, rather than examining what it may mean for the market as a whole, he focused on whether investors should view the stock as a Buy, Sell, or Hold.
McDonald’s Corp. (NYSE: MCD) stock has been under pressure this year. Osorio-Mazilli reminds investors that most of the company's problems are self-inflicted as it manages the effects of inflation on its producer prices and the consumer. However, the company’s new $5 meal is igniting a price war, and competitors are starting to enter the fray.
Finally, if you’re looking for stocks to buy, Osorio-Mazilli reminds investors that looking at the stocks that fund managers are buying is a good start. He did exactly that in an article that highlighted three stocks that Morningstar analysts indicate are getting an inflow of capital from hedge funds.
