MarketBeat Week in Review – 07/31 - 08/04

We’re back to bad news being good news. A weaker than expected jobs report lifted the market. The contrarian logic is that weakening employment numbers will give the Federal Reserve room to pause its campaign of raising interest rates.  

Adding more fuel to market bulls was an earnings report from Apple which was neither as good as the bulls hoped, nor as bad as the bears hoped. Which is a net bullish outcome for stocks.  

Investors will get more information about the direction of inflation next week when the consumer price index (CPI) and producer price index (PPI) are released. These reports could point to a continued downward trend. But investors should be cautious, because it’s likely that rising oil prices are not yet priced in.  

Next week will start off with Palantir reporting earnings on Monday. That could get the markets off with a bang. Before you prepare for next week, here are some of our most popular stories from this week.   

Articles by Jea Yu 

It’s been a great year for tech stocks, but not necessarily for small-cap stocks. That was the takeaway from Jea Yu who reminds investors that fund managers may start rotating to stocks in the Russell 2000 small-cap index. One way for investors to get exposure is through the iShares Russell 2000 ETF (NYSEARCA: IWM). The ETF is up 14.2% which is lagging the NASDAQ 100 index and the S&P 500 index. 

Yu was also looking at a possible resurgence with Teladoc Health, Inc. (NYSE: TDOC). The leader in virtual health care is showing signs of breaking out of a bearish technical pattern. Revenue is normalizing as patients are turning to the convenience and access of telemedicine in response to long wait times for in-person appointments. 

Another surprising market mover this week was DISH Network Co. (NASDAQ: DISH). The company’s stock surged on news that it was partnering with Amazon.com, Inc. (NASDAQ: AMZN) to sell mobile services to Amazon Prime members.    

Articles by Thomas Hughes 

If you have FOMO about Nvidia Corporation (NASDAQ: NVDA), you might want to consider Advanced Micro Devices, Inc. (NASDAQ: AMD). The company posted a solid earnings report fueled by AI. Analysts reactions are mixed, but as Hughes points out, if the stock manages to clear a point of resistance, it will have nowhere to go but up. 

Sticking in the chip sector, Hughes was analyzing the recent surge in ON Semiconductor Corporation (NASDAQ: ON). The stock surged after the company beat on earnings and raised its full-year guidance. The stock may be ready to hit new highs, but Hughes points out that investors may want to be cautious as ON stock looks like it’s forming a short-term top.  

Turning to the consumer staples sector, Hughes was looking at the outlook for the Kraft Heinz Company (NASDAQ: KHC). The stock has been range-bound for a couple of years, but Hughes reminds investors that it’s trading at a discount to the sector and remains a strong deep value play.  

Articles by Sam Quirke 

Apple, Inc. (NASDAQ: AAPL) reported earnings this week. If you were considering trading AAPL stock around earnings, we hope you read Sam Quirke’s article which provided investors with two foolproof ways to trade Apple no matter what the earnings report shows.  

Quirke was also writing about the ongoing turnaround story happening with Roku, Inc. (NASDAQ: ROKU). The stock is up 160% in 2023, but Quirke notes that there were several things to love about the company’s earnings report, which means there’s still an opportunity for investors to take a position in ROKU stock.  

An opposite story is happening with SoFi Technologies, Inc. (NASDAQ: SOFI). The stock has climbed 100% since May, but it’s pulling back after an earnings report that was just ok as far as analysts were concerned. However, Quirke explains why there’s still long-term potential for SOFI stock.  

Articles by Chris Markoch 

One way that companies return value to its shareholders is by offering share buybacks. When it comes to buybacks, bigger isn’t always better, but if the other fundamentals are right, size does matter. This week, Chris Markoch pointed investors to three companies that are offering some of the largest share buybacks, but also give investors with other reasons to buy.  

Markoch was also writing about chip stocks which are the backbone of artificial intelligence. With that in mind, he was looking at three chipmakers that still have room to run despite the recent growth in the AI sector.  

And one of the stocks moving the Dow this week was Caterpillar, Inc. (NYSE: CAT). The company beat on the top and bottom lines. However, heading into earnings, the growth looked fully priced in, so investors should wait to see if analysts raise their price targets for CAT stock before taking a position.   

Articles by Kate Stalter  

Two of the most compelling sectors that will benefit from artificial intelligence (AI) are biotech and healthcare. The possibilities for drug discovery and personalized medicine are intriguing. If you’re looking for AI plays beyond companies like Nvidia, Kate Stalter wrote about the AI-fueled growth in several companies in these sectors. 

While there’s been a lot of commentary about the “Magnificent 7” stocks, Stalter writes that there’s been some rotation in the S&P 500. This week, Stalter gives investors the names of the stocks that have moved to the top of the S&P 500 leaderboard.  

One name that’s not on that list, but maybe it should be is Palantir Technologies, Inc. (NYSE: PLTR). To say the stock has been on a tear is an understatement, but that is creating frustration for investors who are looking to buy or trade the stock. The company reports earnings next week and Stalter gives investors some ideas on how to handle PLTR stock ahead of the report.  

Articles by Ryan Hasson 

Exchange-traded funds (ETFs) are a way for investors to get exposure to an entire sector. They can smooth out the volatility that comes from an individual stock or stocks and provide cost efficiency. But while many ETFs sound the same, there are differences in the objectives of each fund. This week Ryan Hasson wrote about three tech-focused ETFs that have been top performers this year.  

If individual tech stocks are more your style, Hasson also wrote about two tech stocks that are showing great promise and look ready to break above key technical levels. That’s the fuel for a great buying opportunity.  

Hasson was also writing about the growing interest among investors in stocks with high short-interest. Ever since the short squeezes in stocks like GameStop Corp. (NYSE: GME) and AMC Entertainment Holdings, Inc. (NYSE: AMC), investors are looking for the next gigantic short squeeze. It’s a risky strategy, but if it fits your trading style, Hasson points out three stocks with high short interest that should be on your watchlist. 

Articles by Gabriel Osorio-Mazilli 

PayPal, Inc. (NASDAQ: PYPL) has been a volatile stock and mostly to the downside for the last two years. As Gabriel Osorio-Mazilli wrote this week, PYPL stock continues to drop even after a strong earnings report. But the underlying strength in the report suggests this may be a good time to buy the dip.  

Turning his attention to the hotel and hospitality industry, Osorio-Mazilli was writing about the strong earnings report from Marriott International, Inc. (NASDAQ: MAR). Investors were expecting the hotel chain to show softening demand, but at least for now the earnings report shows that is not the case, particularly in areas outside the United States. MAR stock did not react much to the news, but Osorio-Mazilli explains why the stock’s technicals point to more gains.  

When it comes to the rental car space, however, the results for Avis Budget Group Inc. (NASDAQ: CAR) were mixed. The rental car company missed on revenue but had a healthy beat on earnings that may allow CAR stock to continue its blistering summer rally.  

Articles by MarketBeat Staff 

By their very nature, contrarian investors trade against the trend. And so it is that many traders have had their focus on Carnival Corporation & plc. (NYSE: CCL) which has been one of the market’s star performers this year. However, the MarketBeat staff likes what they see in CCL’s fundamentals and point out four reasons why it may be smooth sailing for CCL stock.  

Speaking of hot sectors, the pet sector continues to be on fire. But rather than looking at one of the many growth stocks, the MarketBeat staff was looking at Zoetis, Inc. (NYSE: ZTS) for its dividend. Specifically, the company recently raised its dividend for the ninth consecutive year. But as you’ll read, that’s far from the only reason to own ZTS stock.  

And for investors looking for a hot sector outside from AI, the MarketBeat staff points to the beauty industry. This has been fueled by a continued return to normalcy. And one segment that’s been seeing strong growth within this hot sector is perfumes and cosmetics. If you’re interested in a strong stock to look at, consider Inter Parfums, Inc. (NASDAQ: IPAR) which is up more than 25% since it rang the bell to close the NASDAQ exchange in February.  

The article "MarketBeat Week in Review – 07/31 - 08/04" first appeared on MarketBeat.