Wall Street's main indices ended a tad higher on Friday but still finished the week with losses amid renewed worries over inflation and uncertainty about the future path of the Federal Reserve’s interest rates.
For the week, the blue-chip Dow Jones Industrial Average fell 0.8%, while the benchmark S&P 500 and technology-heavy Nasdaq Composite declined 1.3% and 1.9%, respectively, with both snapping two weeks of gains.
Next week is expected to be another eventful one as investors continue to gauge the outlook for inflation, the economy, and interest rates.
On the economic calendar, most important will be Wednesday’s U.S. consumer price index report for August, which is forecast to show headline annual CPI accelerating to 3.6% from the 3.2% increase seen in July.
The latest monthly updates on retail sales, and producer prices will also be in focus.
The data will be key in determining what the Fed does through the end of the year. While traders see a 92% chance of the U.S. central bank leaving rates unchanged at the September FOMC meeting, they are pricing in a 47% chance of a 25-basis point hike in November.
Meanwhile, there are just a handful of companies reporting corporate results as the Q2 earnings season draws to a close, including Adobe (NASDAQ:ADBE), and Lennar (NYSE:LEN).
Regardless of which direction the market goes next week, below I highlight one stock likely to be in demand and another which could see fresh downside.
Remember though, my timeframe is just for the week ahead, Monday, September 11 — Friday, September 15.
Stock To Buy: Oracle
I believe Oracle's (NYSE:ORCL) stock will outperform in the coming week, with a potential breakout to a new record high on the horizon, as the cloud and software company
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