Stocks took a breather after rallying sharply to start the week. For now, this feels like a normal pullback that will leave room for stocks to move higher. But that could change as earnings season starts to ramp up.
Investors will pay close attention to see if corporate guidance aligns with an expected rate cut in September. That guidance will also help investors decide if the long-awaited sector rotation is underway. And, if so, what sectors are likely to post the largest gains?
Next week, investors will get the latest read on the Personal Consumption Expenditures (PCE) Index. This is the Federal Reserve’s preferred data point for inflation. If the number confirms that inflation is cooling, it will add further momentum for a rate cut in September.
The takeaway for investors is to expect more volatility in the weeks and months ahead. And know that you can count on the MarketBeat team of analysts to point you to the opportunities that volatility can create. Here are some of our most popular articles from this week.
Articles by Jea Yu
Chinese stocks have been among the worst performers, including Alibaba Group Holding Ltd. (NYSE: BABA). The stock is down 75% from its all-time high but has shown signs of a turnaround in recent months. Jea Yu gives investors five reasons why it may be time to invest in BABA stock.
Yu also wrote about the recent manufacturing agreement sending QuantumScape Co. (NYSE: QS) stock higher. The maker of solid-state batteries continues to move closer to initial production, and this landmark deal ensures there will be a market ready for its products.
The rising cost of insurance is one of the latest impacts of inflation. That’s one reason Lemonade Inc. (NYSE: LMND) is worth a close look. It’s never easy to disrupt an industry with a business model as firmly entrenched as insurance. Still, Yu explains why Lemonade’s focus on artificial intelligence (AI) may cause investors to take notice, particularly if the company becomes profitable.
Articles by Thomas Hughes
Several MarketBeat analysts are monitoring sector rotation. In an article this week, Thomas Hughes explains sector rotation, why it’s happening now, and what stocks and sectors you should consider for your portfolio.
Blue chip stocks are expected to rally as investors look for safety and growth outside technology stocks. That’s likely to make Johnson & Johnson (NYSE: JNJ) look attractive. After a strong quarter, analysts and investors are forecasting a significant upside for JNJ stock.
And while some investors are looking for growth, many will seek out the value in dividend stocks. Hughes writes about three dividend aristocrats that offer investors a 5% yield to go along with a healthy outlook for growth.
Articles by Sam Quirke
While there is some noticeable rotation out of tech stocks, Sam Quirke wrote two articles this week reminding investors they can still find opportunities in the sector. For example, Apple Inc. (NASDAQ: AAPL) was written off by many investors at the beginning of the year. But the stock is rallying hard in the second quarter, and recent upgrades suggest more upside for AAPL stock.
By contrast, Quirke notes that investors in Microsoft Corporation (NASDAQ: MSFT) have watched the stock drop in recent weeks. However, the stock was one of the best-performing stocks in the first half of the year, and all the catalysts that moved the stock high remain in place. This is why investors will watch the company’s upcoming earnings report for news that could make this an attractive dip.
Articles by Chris Markoch
NVIDIA Corporation (NASDAQ: NVDA) remains one of the most popular stocks in 2024. This week, Chris Markoch explains what’s causing the recent pullback in NVDA stock, why generative AI is a long-term bullish catalyst for the stock, and why lower interest rates could also negatively impact NVDA stock.
Markoch also wrote about IDEAYA Biosciences Inc. (NASDAQ: IDYA), a mid-cap biotechnology stock that is a leader in the emerging field of precision medicine. The company’s stock was recently up 16% after reporting positive news in a recent Phase 2 clinical trial and what it could mean for IDYA stock moving forward.
Articles by Ryan Hasson
It's essential to watch for stocks that are likely to outperform in the coming sector rotation. But it’s also important to look for stocks that may underperform. This week, Ryan Hasson was eyeing four overbought stocks ready for a pullback and how investors should approach them.
Hasson also wrote about the recent price action with Oracle Corp. (NYSE: ORCL) after its discussions with Elon Musk’s xAI startup fell through. This is a good reminder that investors will look for any reason to sell and why, when you zoom out, ORCL stock still has many bullish catalysts that should limit the sell-off.
And the recent surge in equities was preceded by a surge in Bitcoin. That could make this a good time to look at crypto stocks, like the four crypto-related stocks that Hasson analyzed, as they have surged higher this week.
Articles by Gabriel Osorio-Mazilli
Gabriel Osorio-Mazilli also wrote about the possibility that exists in cryptocurrency stocks and analyzes four cryptocurrency stocks that could be ready to make a sharp move higher in the coming months as investors play the underlying strength in cryptocurrency.
Investors may also notice that gold has been hitting record highs lately. That makes this a good time to consider gold stocks, particularly gold mining stocks, which require higher metal prices to make their drilling operations profitable. Osorio-Mazilli gives you three gold stocks to consider.
Osorio-Mazilli also wrote about the opportunity in the cybersecurity stock Datadog Inc. (NASDAQ: DDOG). In a week ending with a reminder of cybersecurity's necessity and potential drawbacks, Osorio-Mazilli explains why analysts are bullish about DDOG stock.
Articles by Leo Miller
Airline stocks are among the first to report earnings. This week, investors heard from United Airlines Holdings Inc. (NASDAQ: UAL), and as Leo Miller writes, analysts liked most of what they heard, including that the airline reaffirmed its full-year guidance despite expectations for a 3% capacity decline in the coming quarter.
In coming weeks, there’s been a sell-off in the chip sector. That, and remarks made by former President Trump, may help explain why shares of Taiwan Semiconductor Manufacturing Co. (NYSE: TSM) are flat despite the company delivering a double beat on revenue and earnings.
You may wonder if you’ve missed the infrastructure-fueled run in industrial stocks such as Fastenal Co. (NASDAQ: FAST). Miller explains why analysts have mixed opinions on the company and how investors may want to trade FAST stock.
