Summer is here, and investors seem to be taking it easy. The markets were calmer this week, with all the indexes pointing slightly higher. The Dow index ended the week with the biggest gains. Is this signaling the long-awaited broadening out of the market?
It's too early to tell. Investors may be simply repositioning after taking some profits from NVIDIA Corp. (NASDAQ: NVDA). There won't be much news to move the markets until Friday's release of the Personal Consumption Expenditure (PCE) index. This is the Federal Reserve's "preferred" measure of inflation, so it could move markets. Investors will also get the final reading on the first-quarter GDP.
Otherwise, the next known catalyst for markets will come when the next quarterly earnings season kicks off in mid-July. Although estimates have come down, many analysts still expect a strong earnings season, with expectations for the energy sector improving significantly.
Whatever your summer plans entail, the MarketBeat team will have the analysis you need when you need it. Here are some of our most popular stories from this week.
Articles by Jea Yu
The Walt Disney Company (NYSE: DIS) continues to polarize investors. As Jea Yu wrote this week, DIS stock soared 33% after the company won the proxy battle over activist investor Nelson Peltz. However, most of those gains are gone, and with the company forecasting a lower quarter, investors have to wonder if Disney stock is a buying opportunity or if the magic is gone.
In a tough retail sector, Williams-Sonoma Inc. (NYSE: WSM) has been a shining star due in large measure to its focus on the high-income consumer. WSM stock is up 400% in the last five years. As Yu points out, the stock is likely to move higher after the company's announcement of a 2-for-1 stock split, even though investors didn't love the company's earnings report.
And while Americans may be eating out less, they still have an appetite for pizza. But that doesn't mean every pizza franchise is a great investment. This week, Yu compared Domino's Pizza (NYSE: DPZ) with Papa John's International (NASDAQ: PZZA) and explained to investors why there's one clear-cut winner in this battle.
Articles by Thomas Hughes
It's been a long couple of years for 3M (NYSE: MMM). However, with the long-running lawsuits attached to the company nearly behind it, Thomas Hughes writes that investors are starting to focus on the company's fundamentals. That points to a brighter future and a reason some investors may want to get in on a turnaround story in its early stages.
While some investors are taking profits on NVIDIA, Hughes explains why they may be getting ready to buy the dip on Advanced Micro Devices Inc. (NASDAQ: AMD). The AI/data center story is still in its early stages, which is why investors are bidding AMD stock higher even with its premium valuation.
Hughes also writes that investors have been scaling the wall of worry with little trouble. But oil prices may turn out to be the wildcard. This week, oil prices rose above $80 a barrel, and the concern of what lower interest rates would do to oil prices may keep the Fed from lowering rates as fast as investors believe.
Articles by Chris Markoch
A big story this week was the disclosure that Berkshire Hathaway Inc. (NYSE: BRK.B) continued to reduce its stake in BYD Company Limited (OTCMKTS: BYDDY). Warren Buffett's hedge fund initially invested in BYD at the behest of Buffett's partner, the late Charlie Munger. The stock has performed well, and this could just be about taking profit, but as Chris Markoch writes, it does raise questions on how Buffett may view the short-term outlook for EVs.
And with expectations growing for a September rate cut, Markoch writes about three stocks that investors may want to buy to prepare themselves for a summer rally.
Articles by Ryan Hasson
ARM Holdings (NASDAQ: ARM) has been one of the top-performing stocks in 2024. It makes the technology that companies like NVIDIA and Advanced Micro Devices need. But as Ryan Hasson writes this week, despite the stock's inclusion in the Russell 1000 index, ARM stock is showing signs of being overbought. Hasson explains both sides of the valuation debate to help you decide whether to start or add to a position.
Hasson also covered a big week for two pharmaceutical stocks. Outlook Therapeutics Inc. (NASDAQ: OTLK) is getting bullish price target upgrades from analysts. This could mean they expect positive results from the company's lead candidate for treating wet age-related macular degeneration (AMD) and other retinal diseases, which is in Phase III clinical trials.
Then there's Gilead Sciences Inc. (NASDAQ: GILD). The stock is up more than 10% for the week on news that its HIV drug candidate achieved 100% efficacy in its ongoing Phase III trial. Hasson explains why this could continue to build on the stock's recent positive momentum and give investors another reason to own Gilead stock beyond a high-yield dividend.
Articles by Gabriel Osorio-Mazilli
As restaurants fight for every consumer's discretionary dollars, Gabriel Osorio-Mazilli explains why CAVA Group Inc. (NASDAQ: CAVA) may be a better opportunity for investors than Chipotle Mexican Grill Inc. (NYSE: CMG). It's a growth story that, unlike Chipotle, may still be in its early stages.
Staying with consumer discretionary stocks, Osorio-Mazilli explains why analysts are bullish on Celsius Holdings Inc. (NASDAQ: CELH). The company is expected to post stronger earnings than its competitors, which could make the stock a great buy-the-dip opportunity.
One storm cloud over CAVA, Celsius, and other similar companies could come from GLP-1 weight-loss drugs that continue to grow in popularity and adoption. It's a sector that has been producing outsized gains among stocks like Eli Lilly & Co. (NYSE: LLY), and Osorio-Mazilli explains why that growth may just be getting started.
