Over $2 trillion of options expired on Friday. That’s typically bullish for the market, but the overall outlook for the market remains bearish. Target’s earnings report may be the harbinger of a holiday season that will come in below expectations. The layoffs in the tech sector suggest that the recession may be picking up steam. Investors looking for more hopeful news could point to Washington, D.C., where a divided government is now a certainty which means, hopefully, no new government spending to stoke inflation. Next week will be an abbreviated trading week, which may bring lower volume and higher volatility. We hope you’ll be able to spend time with those you love and the MarketBeat team will continue to monitor the volatility in this market. Here are some of the top stories our analysts covered this week.
Articles by Jea Yu
This week, Jea Yu helped investors find opportunities where they might not expect them. For example, many analysts advise investors to stay out of the tech sector. But Yu writes that when it comes to a stock like Alphabet (NASDAQ: GOOGL), the worst may already be priced into the stock which is trading near its two-year low. Another stock that investors may overlook is Airbnb (NASDAQ: ABNB). The company just posted a record profit, but some investors are concerned that the season of revenge travel may be coming to an end. If it is, someone didn’t tell Walt Disney (NYSE: DIS). The company’s theme park business continues to post strong numbers as demand is high. As Yu points out, the company’s streaming service is on a path to profitability that may set the table for a much higher stock price.
Articles by Thomas Hughes
Thomas Hughes has been keeping MarketBeat subscribers up to date on the news surrounding Mullen Automotive (NASDAQ: MULN). Like many pre-revenue companies, the news is a mixed bag. On the bright side, the company still appears to be on track to generate revenue by the end of the year. However, that is being offset by a late December vote on a potential reverse stock split. Investors should stay tuned. Hughes was also looking at the retail sector. He sees some upside for TJX Companies (NYSE: TJX) but still believes investors may get a better buying point in 2023. This week also saw the two home improvement giants deliver results. While both Home Depot (NYSE: HD) and Lowe’s (NYSE: LOW) delivered strong results, Hughes believes the state of the housing market favors Lowe’s because it has larger exposure to the DIY market.
Articles by Sam Quirke
If the recent upward move in the market has legs, investors could look at the chip sector as the signal. As Sam Quirke writes, that’s certainly what shareholders of Nvidia (NASDAQ: NVDA) hope for. Shares of NVDA stock were down nearly 70% from their all-time high late last year. A not-as-bad-as-feared earnings report and a bullish outlook from the company’s management suggests that the low may be in. As Quirke writes, that means the rally in NVDA stock may have some legs.
Articles by Chris Markoch
The energy sector remains one of the best opportunities for investors. Right now, that means looking at companies involved with natural gas. This week, Chris Markoch had his eye on three natural gas stocks for investors to watch. These are all midstream companies so what they may lack in eye-popping growth, they make up for with attractive dividends. Markoch was also looking at Advance Auto Parts (NYSE: AAP), which fell sharply after its earnings report. There could be a buying opportunity, but that’s only if you believe the company’s message that this quarter’s margin decline is truly a one-off.
Articles by Kate Stalter
Kate Stalter wrote “one person’s problem is an opportunity for someone else” about bulk shipping stocks. Stalter used the phrase to describe how bulk shipping companies were big winners in the pandemic. However, many of these companies have begun to post lower revenue and earnings as interest rates and a recession chip away at consumer demand. That “problem” for shippers may be an opportunity for investors have eyed Carnival Corporation (NYSE: CCL). Although the cruise industry will have to navigate the current economy, cruise lines benefit as consumers shift from buying stuff to paying for experiences. Stalter also eyed the outlook for AbbVie (NYSE: ABBV) stock. The company already lost exclusivity for its cash cow, Humira, in Europe, and that will be true in the United States starting next year. Stalter offers investors her thoughts for how they may want to play the recent consolidation in ABBV stock.
Articles by MarketBeat Staff
Gold hasn’t been as much of an inflation hedge, as many investors prefer the relative safety of a strong dollar. But recent Central Bank purchases suggest that gold prices may be getting ready to soar. Investors can get indirect exposure to gold through mining stocks. The MarketBeat staff highlights Newmont Gold (NYSE: NEM) as a possible target for investors. The staff also picked through the tech sector for good value and found a mid-cap stock trading at 10-year highs. Turning their attention to the retail sector, Wayfair (NYSE: W) stock has fallen dramatically. The online home furnishings retailer was a big pandemic winner but investors are experiencing the other side of that business cycle play out as Wayfair faces heightened competition from brick-and-mortar furniture stores ramping up their e-commerce efforts.
