Financial News
MarketBeat Week in Review – 10/16 - 10/20
All the major indexes moved lower in early Friday trading, making it a near certainty that stocks would post their worst week in a month. There are several reasons to justify the bearish sentiment.
The yield on the 10-year U.S. Treasury bills is close to 5% again. At these levels, the relative security of bonds is more attractive to investors and puts pressure on stocks.
Fed Chair Jerome Powell made hawkish comments suggesting that the Fed could raise interest rates again if the economy continues to show strength. And geopolitical events in the Middle East are also a cause for concern, particularly regarding oil prices.
Earnings season has provided a little good news for investors unless you own shares of Tesla. Shares of the country's largest EV maker fell sharply after the company posted disappointing earnings. However, if you own Netflix, the story was quite different.
That's the nature of this market. If you're looking to find opportunities in the market, the MarketBeat analysts are here to help. Here are some of our most popular stories from this week.
Articles by Jea Yu
The consumer staples sector is a good place for investors looking for a place to ride out a volatile market. These companies make products that consumers always need, and in many cases, they can pass along higher prices. Jea Yu wrote about why Hormel Food Corporation (NYSE: HRL) and Campbell Soup Company (NYSE: CPB) are inexpensive buys for investors.
For investors willing to assume a bit more risk, Yu analyzed Lemonade, Inc. (NYSE: LMND) and Under Armour, Inc. (NYSE: UAA) as two relatively new stocks showing themselves to be great bargains.
Yu was also writing about the recent downturn in the share price of the Vietnamese electric vehicle maker VinFast Auto Ltd. (NASDAQ: VFS). That kind of price action is typical of a company that went public in August 2023. And as Yu writes, it could present a buying opportunity for retail investors to get in at a more attractive price.
Articles by Thomas Hughes
Tesla, Inc. (NASDAQ: TSLA) disappointed investors with a double miss on earnings and sour guidance. However, that's the kind of volatility long-term shareholders have come to expect. Thomas Hughes presents five facts from the earnings report that go beyond the headline reports.
While Tesla may become a "forever" stock, Thomas Hughes explains why Texas Instruments Incorporated (NASDAQ: TXN) already has that distinction. Because of that, investors should read the five reasons Hughes believes the 25% reduction in price is a great opportunity to accumulate more shares.
Hughes also dissected the winners and losers of the U.S. Government's $7 billion hydrogen grants. While some of the grants are going to "green hydrogen" projects, most will promote "greener" hydrogen projects at larger companies with the resources to get projects across the finish line.
Articles by Sam Quirke
For years, most social media users have accepted the trade-off between free access and distracting (and potentially privacy-violating) ads. This week, Sam Quirke writes about Meta Platforms (NASDAQ: META), which plans to launch an ad-free version of Facebook and Instagram in Europe. Quirke notes that any success there will likely be brought to the U.S. and may create more upside for the stock.
Quirke also wrote about the recent slump in Dollar Tree, Inc. (NASDAQ: DLTR) stock, which has been part of the sell-off in stocks that started in September. The catalyst for the sell-off was slimmer margins. However, if the company's next earnings report confirms analyst sentiment, DLTR stock won't be a bargain for long.
Traders looking for a technical trigger may want to look at one of the three mega-cap stocks that Quirke notes were showing relative strength indicators (RSIs) of 30 or below. That RSI level indicates an oversold condition, which may present investors with a buying opportunity.
Articles by Chris Markoch
One of the bright spots of the earnings season came from Netflix, Inc. (NASDAQ: NFLX). The streaming giant reported a double beat and raised its guidance for the rest of the year. As Chris Markoch writes, investors may still have time to jump on NFLX stock as the company now has evidence that its ad-supported model, along with live sports, may be the keys to unlocking future growth in the sector.
Articles by Kate Stalter
Housing and travel are two of the most closely watched sectors in the economy. Both offer investors a snapshot of the consumer's health. This week, Kate Stalter explains why investors may be seeing the initial signs of weakening in the revenge travel sector. Share prices of airlines big and small are falling as companies cut their earnings forecasts to reflect what appears to be a return to a more "normal" travel experience.
On the housing front, recent data and falling prices in homebuilder stocks show that rising mortgage rates are taking a toll on home buyers. Yes, mortgage rates may still be low by historical standards. But after nearly two decades of sub-5 % mortgage rates, to go along with sticky inflation, many prospective buyers are being, or feeling, priced out.
Stalter was also writing about the sell-off that is befalling some stocks as weight loss drugs like Ozempic continue to grow in popularity. This week, Stalter was specifically looking at DexCom, Inc. (NASDAQ; DXCM) and gave investors several reasons to believe that the recent sell-off in DXCM stock may be overdone.
Articles by Ryan Hasson
Many investors know they should be in consumer staples stocks but don't know which stocks stand out and when to buy them. Ryan Hasson offered insight into both questions this week. As far as the when he notes that a popular sector ETF is reaching a level of support that suggests a bounce is likely. As for names, Hasson gives you the names of three stocks that are part of that ETF and may be worth pulling out and owning.
For investors willing to accept the risk that's always present in the biotech sector, Hasson writes about the recent short squeeze that sent shares of Tempest Therapeutics, Inc. (NASDAQ: TPST) soaring over 4,000%. At the same time, the company did have positive news on its lead candidate. Hasson explains the technical reasons behind the price movement and why it may not last.
Articles by Gabriel Osorio-Mazilli
The ongoing UAW strike may make it seem like a crazy time to invest in automotive stocks. Gabriel Osorio-Mazilli takes the opposite approach, suggesting that there's always an opportunity and explains why three automotive stocks look like solid buys regardless of what happens with the strike.
In volatile markets, investors can take comfort in companies with strong fundamentals. Among those are a low beta value, dividend growth, and a bullish outlook for earnings. With that in mind, Osorio-Mazilli gave investors three stocks that fit these criteria and have defensive characteristics that make them nearly unstoppable even in this market.
One of the biggest stories affecting markets this week is the 10-year U.S. Treasury Bond rising to 5%. That makes some stocks, but not all. Osorio-Mazilli points out that it's still possible to find stocks that pay a dividend with a yield above 5% and maybe even some growth along the way.
Articles by MarketBeat Staff
When it comes to high-yield dividend stocks, what can I say other than great minds think alike? This week, the MarketBeat staff was also helping investors find dividend stocks that offer yields between 6% and 8%.
And while it's not posting a yield over 5%, NextEra Energy, Inc. (NYSE: NEE) does sport an attractive yield of 3.24%. Since dividend yields have an inverse relationship with stock prices, the staff notes that you can take advantage of the 2023 sell-off in NEE stock to capture the stock while it's paying a higher yield.
Finally, the staff weighed in on the debate between Oreo's and Ozempic. And in the case of Mondelez International, Inc. (NASDAQ: MDLZ), the effect of weight loss drugs on revenue and earnings isn't known yet. But there are reasons to believe MDLZ stock is oversold.
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