MarketBeat Week in Review – 4/1 - 4/5

April 06, 2024 at 07:00 AM EDT

Equities lost ground this week as investors came to grips with interest rates that will stay higher for longer. That sentiment was confirmed by Federal Reserve chair Jerome Powell, who continues to say that rate cuts are coming but remains non-committal as to when those cuts will occur.

One culprit is oil. Crude prices pushed over $85 a barrel as tensions in the Middle East increased. Oil prices have a lagging effect on corporate earnings, which means corporations may reassess their earnings outlook when earnings season begins next week. If corporations start to signal lower profits, it could lead to a continued sell-off.

On the other hand, the March Jobs report came in hotter than expected, with 303,000 jobs created in the month. Another surprise was that the unemployment rate ticked down to 3.8%.

The market continues to surprise investors, and the MarketBeat team is committed to following the stocks and stories that move the markets. Here are some of the top stories from this week.

Articles by Jea Yu

One way to profit from the ongoing artificial intelligence (AI) wave is to look at the infrastructure needed to make AI applications possible. One of those areas is data centers. This week, Jea Yu looked at two data storage device makers that are seeing surging demand that shows no sign of slowing down.

Focusing on AI is what investors in Snowflake Inc. (NASDAQ: SNOW) want to see after the company issued soft guidance in its most recent quarter. However, Yu explains why Snowflake's new CEO, who comes over from Alphabet Inc. (NASDAQ: GOOGL), looks to be the right candidate to lead the company into its AI era. And the new CEO recently increased his stake in the company to the tune of $5 million.

Yu also wrote about the surge in Viking Therapeutics Inc. (NASDAQ: VKTX) over positive news on the company's GLP-1 pill. The company's candidate, which is in clinical trials, is showing comparable weight loss benefits with less severe and more tolerable side effects, which are a key obstacle with currently available GLP-1 treatments.

Articles by Thomas Hughes

In news that may be summarized as "another one bites the dust," electric vehicle (EV) manufacturer Canoo Inc. (NASDAQ: GOEV) issued a going concern notice. The company is short on cash and is finding it hard to raise more capital in a higher interest rate market. Thomas Hughes breaks down Canoo's situation and offers up a different EV company for investors still interested in Canoo's commercial vehicle niche.

As earnings season begins, technology stocks are still a popular choice for investors. And, because of some repricing, several stocks are trading at much better valuations. With that in mind, Hughes highlights five tech stocks that investors should consider before the earnings season kicks off.

For investors looking to take some risk off the table, Hughes was looking at five cheap dividend stocks. This doesn't just mean the stocks are affordable; they're also likely to give investors a chance for outsized stock price gains in addition to a growing dividend.

Articles by Sam Quirke

Every now and then, quality stocks make downward moves that are hard to explain. Sam Quirke explains why that's been the case with Advanced Micro Devices Inc. (NASDAQ: AMD). After a strong first quarter, the stock fell sharply and diverged from its sector and the broader market. However, analysts are still bullish on AMD stock, which could set the stage for a massive comeback rally.

Among beauty stocks, Estee Lauder Companies Inc. (NYSE: EL) has been left behind competitors such as Ulta Beauty Inc. (NASDAQ: ULTA). EL stock is down 70% from its 2022 highs. However, the stock has not only shown signs of a bottom but is getting numerous analyst upgrades that may move the stock higher.

If you're a contrarian trader, Quirke has some stocks with a high relative strength indicator (RSI) that may be worth considering. While many investors see an RSI over 70 as a reason to sell, Quirke highlights three high RSI stocks that still give investors reason to believe they may go higher.

Articles by Chris Markoch

One of the week's major stories was the news that Tesla Inc. (NASDAQ: TSLA) missed analysts' expectations for deliveries in the first quarter by a wide margin. Chris Markoch explains why the miss continues to emphasize the company's weakness in China and soft demand for EVs in the United States. The bottom line is that unless the company delivers a surprise in its earnings report, TSLA stock may fall further.

Articles by Ryan Hasson

Sometimes, the best offense is a good defense. In investing terms, that means using existing economic conditions to buy stocks in defensive sectors. Ryan Hasson points investors to an ongoing rotation into defensive sectors. This is causing institutional investors to buy shares of the four oversold large cap stocks that Hasson analyzes.

Another way you can play defense in this market is with gold. The yellow metal is one of the best-performing asset classes in 2024 and will likely continue to outperform. That's why Hasson is analyzing five mining stocks that give investors a way to invest in the strength of gold without the concerns of owning the physical metal.

However, there are also times when you have to invest in the economy that exists, not the economy you think should exist. As Hasson writes, consumer spending is on the rise, and that's why investors should consider buying shares of the Consumer Discretionary Select SPDR ETF (NYSE: XLY) to gain exposure to the top names without picking individual stocks.

Articles by Gabriel Osorio-Mazilli

Gabriel Osorio-Mazilli was also writing about consumer discretionary stocks. Except in this case, he was naming three specific names to buy as consumer sentiment is at its highest level since 2001.

Energy stocks have been a big winner as oil prices are surging. However, Osorio-Mazilli reminds investors why they shouldn't forget about the natural gas market. And particularly, the underrated natural gas stock that institutions are making a heavy buy.

And, as per its custom, bank stocks will be the first to report when earnings season starts next week. As has been the case for over a year, investors will be paying close attention to the commercial banking sector. Osorio-Mazilli offers up two commercial bank stocks that analysts love heading into earnings season.

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MarketBeat Week in Review – 4/1 - 4/5

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