Stock Market Review – 4/1 – 4/5

Stocks lost ground this week as investors grappled with interest rates that will remain higher for longer. This sentiment has been confirmed by Federal Reserve Chair Jerome Powell, who continues to say that rate cuts are coming, but remains vague about when those cuts will occur.

One of the culprits is oil. Crude oil prices topped $85 a barrel as tensions rose in the Middle East. Oil prices have a lagged effect on corporate earnings, meaning companies may reassess their earnings outlook when earnings season begins next week. If companies start reporting lower profits, it could lead to continued sell-offs.

On the other hand, the March jobs report turned out to be more interesting than expected, with 303,000 jobs created in the month. Another surprise was that the unemployment rate fell to 3.8%.

The market continues to surprise investors, and the MarketBeat team is committed to following the headlines and stories that move the markets. Here are some of this week’s biggest stories.

Articles by Jea Yu

One way to profit from the current wave of artificial intelligence (AI) is to look at the infrastructure needed to make AI applications possible. One of these areas is data centers. This week, Jea Yu looked at two data storage device manufacturers that are experiencing a surge in demand that shows no signs of slowing.

Focusing on AI is what investors are investing in Snowflake Inc. NASDAQ: SNOW I want to see after the company issued soft guidance in its latest quarter. However, Yu explains why the new CEO of Snowflake, who comes from Alphabet Inc. NASDAQ:GOOGL, seems to be the right candidate to lead the company into the era of artificial intelligence. And the new CEO recently increased his stake in the company by the amount of $5 million.

Yu also wrote about the increase Viking Therapeutics Inc. NASDAQ: VKTX on positive news about 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 hurdle with currently available GLP-1 treatments.

Articles by Thomas Hughes

News that can be summed up as “another bites the dust” electric vehicle (EV) manufacturer. Canoo Inc. NASDAQ: GOEV has issued a going concern notice. The company is cash-strapped and struggling to raise more capital in a market with higher interest rates. Thomas Hughes analyzes Canoo’s situation and offers another electric vehicle 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, due to some price revisions, several stocks are trading at much better valuations. With that in mind, Hughes highlights five tech stocks that investors should consider before earnings season begins.

For investors looking to take some risk off the table, Hughes was looking at five cheap dividend stocks. This doesn’t just mean the shares are cheap; they are also likely to offer investors the possibility of excessive share price gains in addition to a growing dividend.

Articles by Sam Quirke

From time to time, quality stocks make downward moves that are difficult to explain. Sam Quirke explains why this was so 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 the beauty titles, Estee Lauder Companies Inc. NYSE:EL has been left behind by competitors like Ulta Beauty Inc. NASDAQ:ULTA. EL stock is down 70% from its 2022 highs. However, the stock has not only shown signs of bottoming, but is receiving numerous upgrades from analysts that could send the stock moving higher.

If you are a contrarian trader, Quirke has some stocks with a high relative strength indicator (RSI) that might be worth considering. While many investors see an RSI above 70 as a reason to sell, Quirke highlights three high RSI stocks that still give investors reason to believe they could rise.

Articles by Chris Markoch

One of the biggest stories of the week was the news that Tesla Inc. NASDAQ:TSLA they missed analysts’ expectations for deliveries in the first quarter by a wide margin. Chris Markoch explains why the news continues to highlight the company’s weakness in China and weak demand for electric vehicles in the United States. The bottom line is that unless the company delivers a surprise in its earnings report, TSLA stock could fall further.

Articles by Ryan Hasson

Sometimes, the best offense is a good defense. In investment terms, this means using existing economic conditions to buy stocks in defensive sectors. Ryan Hasson is warning investors of an ongoing rotation into defensive sectors. This is driving institutional investors to buy shares of the four oversold large-cap stocks analyzed by Hasson.

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 offer investors a way to invest in the strength of gold without the worry of owning the physical metal.

However, there are also times when you need to invest in the economy that exists, not the economy you think should exist. As Hasson writes, consumer spending is on the rise, which is why investors should consider buying stocks of the Consumer Discretionary Select SPDR ETF New York Stock Exchange: XLY to gain exposure to the biggest names without selecting individual stocks.

Articles by Gabriel Osorio-Mazilli

Gabriel Osorio-Mazilli has also written about consumer discretionary stocks. Except in this case, he named three specific names to buy as consumer confidence is at its highest level since 2001.

Energy stocks have been a big winner as oil prices have been rising. However, Osorio-Mazilli reminds investors why they shouldn’t forget about the natural gas market. And in particular, the undervalued natural gas stocks that institutions are buying heavily.

And, as usual, bank stocks will be the first to signal the start of earnings season 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 two commercial bank stocks that analysts love ahead of earnings season.

Before you consider Snowflake, you’ll want to hear it.

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 Snowflake wasn’t on the list.

While Snowflake currently has a “Moderate Buy” rating among analysts, top-rated analysts believe these five stocks are better buys.

View the five stocks here