Financial News
MarketBeat: Week in Review 11/28 – 12/02
Good news continues to be bad news for Wall Street. A hotter-than-expected jobs report had stocks sharply lower in the pre-market session on Friday. Investors are concerned that the report will embolden the Federal Reserve to keep interest rates higher and for a longer period of time to get inflation under control. It’s the latest big swing in a week that saw the Dow climb 700 points on the hint that the pace of interest rate hikes will ease. Next week investors will get more economic data. And the key data point will be the November producer price index (PPI) reading which is due out on December 9. In volatile times like these, you need analysis you can count on. And that’s what you get from the MarketBeat team as they look at the what and the why behind the market movements. Here are some of the top stories our analysts were covering this week.
Articles by Jea Yu
It’s a difficult time to invest in Chinese stocks, but as Jea Yu writes this week risk-tolerant investors may want to pay attention to JD.com (NASDAQ: JD). The “Amazon of China” continues to post impressive double-digit gains on the top line and is well positioned to grow when China’s strict Covid policies loosen. Here in the United States, Yu was looking at Best Buy (NYSE: BBY) that is, at least in the short term, consumers are still finding a place for a brick-and-mortar retailer in this increasingly digital retail world. Maybe shopping is a little retail therapy for consumers to get away from all those online meetings. As Yu writes, Zoom Communications (NASDAQ: ZM) stock is still looking for a bottom as revenue is now normalizing after the pandemic jump.
Articles by Thomas Hughes
Consumers continue to prioritize spending on travel and experiences even as there are signs the economy is weakening. That is evident in the hotel and hospitality sector being the 7th fastest-growing sector in 2022. Thomas Hughes was looking at three hotel stocks that investors should be considering as the line blurs between business and leisure travel. Another sector where Hughes is seeing more bullish sentiment emerging is cannabis. This week Hughes was looking specifically at OrganiGram (NASDAQ:OGI) which is showing a path to profitability just as the legalization of marijuana on a broad scale is looking more likely. Hughes was not as bullish, however, on cloud stocks. As Hughes writes, several earnings reports are showing that revenue and earnings aren’t matching the lofty valuations of these companies.
Articles by Sam Quirke
Apple (NASDAQ: AAPL) has been in the headlines this week, but not for reasons that bullish investors would like. Concerns about the company’s supply chain and its relationship with the Chinese government is garnering negative headlines. However, as Sam Quirke writes, at times like these, it’s important to see what story the chart is telling. In the case of Apple, the charts continue to show Apple finding a level of support that suggests it will be to the upside when a big move comes.
Articles by Chris Markoch
Are we in a recession? Are we heading into one? Many analysts have an opinion. However, as Chris Markoch writes, there’s no question that the markets are seeing an inverted yield curve. This occurs when the yield on a short-term bond is higher than that of a bond with a longer term. Although it’s a lagging indicator (meaning it’s revealing economic activity that has already occurred), an inverted yield curve has accurately predicted every recession since World War II. Markoch was also writing about the sharp movement in Cosmos Holdings (NASDAQ: COSM). This is a vertically integrated pharmaceutical company that is showing strength as this model is beginning to catch on. Markoch lays out both the bullish and bearish cases investors should consider before chasing this penny stock.
Articles by Kate Stalter
By most accounts, the beginning of the holiday shopping season marked by Black Friday and Cyber Monday got off to a great start. And Kate Stalter delivered a preliminary report card to help you see which companies were the winners and losers in the early going. These may be stocks to put on your watchlist in advance of fourth-quarter earnings reports. Speaking of stocks to watch, Stalter was also writing about SoFi Technologies (NASDAQ:SOFI). The fintech company has had more than its share of headwinds, but recent price action may be showing that much of that bad news may be priced in. It may be too early to buy, but if a bottom is confirmed, SOFI stock may be creating an opportunity. Another opportunity for investors may be in Chinese EV stocks. Specifically, Stalter sees an opportunity with Nio (NYSE:NIO) which is moving higher on the coattails of a strong earnings report from XPeng (NYSE:XPEV).
Articles by MarketBeat Staff
Apparel stocks are drawing the attention of investors this holiday season. While the overall outlook looks shaky, the MarketBeat staff offers three apparel stocks that investors may want to keep an eye on as the year comes to an end. With risk-off sentiment still in play, this is a good time to invest in dividend stocks, the staff offers three dividend growers that are likely to continue that trend in 2023. And it appears a change at the top is turning out to be a recipe for growth at Restaurant Brands International (NYSE: QSR). The stock is up sharply as investors believe more innovation may be on the way as the former CEO of Domino’s Pizza (NYSE: DPZ) takes the reins.
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