Key points
- The latest inflation news had stocks trading mostly lower on the week.
- Investors are reconsidering the outlook for interest rate cuts and what that will mean for corporate earnings and stock valuations.
- Earnings season is now underway and next week will bring data on retail sales and new real estate projects.
- 5 stocks we prefer to JPMorgan Chase & Co.
Many stories moved the markets this week, but the overall movement was smaller. The latest inflation readings have shown that, by almost all indicators, prices are increasing at a faster pace than in the previous year.
Some say it’s a sign of a healthy economy. But the market is not the economy, and equity investors are now rethinking stock valuations with the prospect of fewer, and subsequent, rate cuts for the rest of the year.
And as the week ended, many major banks kicked off a new quarter of earnings. Reports have been mostly positive, but JP Morgan Chase New York Stock Exchange: JPM cited slow growth as higher interest rates mean they have to pay more interest on customer deposits.
Investors will receive more data on retail sales and housing construction starts next week. MarketBeat analysts will be ready to cover it all. Here are some of our most popular stories this week.
Articles by Jea Yu
Jea Yu wrote this week: “Nothing scares stock market bears more than two simple words: short squeeze.” A short squeeze requires the right combination of factors coming together. This is the case for three stocks with high short interest, which Yu points out could be just one catalyst away from a short squeeze.
Investors looking for a good deal of another kind may want to take a look Krispy Kreme Inc. NASDAQ:DNUT. The company with the iconic donuts has grown after announcing a partnership with McDonald’s Corp. NYSE: MCD. The stock may have gotten ahead of itself and is retreating into a more attractive range which Yu says creates an opportunity for investors looking to bite into DNUT stock.
For options traders, Yu explains the pros and cons of using call debit spreads. Yu explains what call debit spread is and how to use that strategy (with examples) to maximize profits.
Articles by Thomas Hughes
One of the most recognizable technical indicators for investors is the golden cross. Even if they don’t know the name, they recognize it as a bullish pattern. This week, Thomas Hughes defines the golden cross pattern and highlights four stocks that exhibit this pattern and may be poised for a bullish move higher.
A less obvious, but sometimes predictive, indicator occurs when company insiders buy shares in their company. MarketBeat has a tool that lets you see what stocks CEOs are buying. And Hughes breaks down the five stocks with the most significant CEO purchases in the first quarter of 2024 and what it could mean for their prospects over the rest of the year.
Delta Air Lines Inc. NYSE: FROM it was one of the first stocks to report profits and deliver record results. The stock has been one of the best-performing airline stocks and is poised for future gains, but investors have been disappointed in the past. Hughes analyzes whether this report will be the catalyst for the stock to rise.
Articles by Sam Quirke
Apple Inc. (NASDAQ; AAPL) has been one of the worst performing stocks among technology stocks and the broader market in 2024. Sam Quirke doesn’t deny that the company has some hurdles to overcome. However, he argues that AAPL stock appears undervalued at this point and could be poised to make a sharp move higher.
Investors caught up in the Nvidia hype may have missed the recent surge Micron Technology Inc. NASDAQ:MU. But Quirke explains why you still have a chance to buy MU stock, as demand for its memory chips makes it one of the must-own stocks for the second quarter.
Articles by Chris Markoch
Constellation Brands Inc. NASDAQ: STZ came out of the gates swinging this earnings season. Continued strength in beer sales, particularly the Modelo brand, has led to a double beat and bullish guidance for 2024. Chris Markoch explains why this means investors can expect STZ stock to continue rising.
Markoch also wrote about what the acquisition was about Shockwave Medical Inc. NASDAQ: SWAV could mean for Johnson & Johnson NYSE:JNJ. The stock has been trending lower as it is now a standalone company, without its consumer health products. But access to Shockwave’s proprietary technology could be the jolt the stock needs.
Articles by Ryan Hasson
Rising oil prices have been one of the main reasons why inflation continues to grow at a higher rate than normal. Supply and demand concerns are only likely to intensify next quarter, and Ryan Hasson helps you prepare with three energy stocks that can help you capture these gains.
Precious metals are also showing strong demand, which is driving up the price of gold and, more recently, silver. This week, Hasson outlines four stock options that can give you exposure to silver if you’re not comfortable buying the physical metal.
Hasson also wrote about the recent retreat in the semiconductor industry. This is a significant correction for many stocks that were more than frothy. However, the near-term outlook remains bullish, and Hasson analyzes what it could mean for five major semiconductor stocks.
Articles by Gabriel Osorio-Mazilli
The most important question investors are considering is when and whether the Federal Reserve will cut interest rates. Markets hate uncertainty. And the lack of clarity on rates, among other things, is causing the volatility index (the VIX) to rise. This week, Gabriel Osorio-Mazilli analyzes three low-beta consumer staples stocks that could be just what your portfolio needs.
But let’s say the Federal Reserve cuts rates. This could make fixed income investments less attractive. That’s why you might want to consider dividend stocks with an attractive yield. Osorio-Mazilli offers three dividend stocks that are good candidates for outperforming lower savings rates.
And if none of these stocks are what you’re looking for, maybe Wendy’s Co. NASDAQ: WED it’s more appetizing. The company offers investors double-digit upside and a dividend yield that exceeds bond yields, which could attract investors looking for growth and value.
Before you consider JPMorgan Chase & Co., you’ll want to hear this.
MarketBeat tracks daily Wall Street’s highest-rated and best-performing research analysts and the stocks they recommend to their clients. MarketBeat identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market takes hold… and JPMorgan Chase & Co. wasn’t on the list.
While JPMorgan Chase & Co. currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.
View the five stocks here
MarketBeat analysts just released their top five short stocks for April 2024. Find out which stocks have the most short interest and how to trade them. Click the link below to see which companies are on the list.
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