1 Stock to Buy, 1 Stock to Sell This Week: JPMorgan Chase, Citigroup
U.S. stocks rallied on Friday, with the S&P 500 and Nasdaq registering their biggest daily percentage gains since late August as investors digested a U.S. jobs report that showed hiring rose broadly in September while wage growth slowed.
For the week, the benchmark S&P 500 and technology-heavy Nasdaq Composite rose 0.5% and 1.6% respectively, to snap a four-week losing streak. The blue-chip Dow Jones Industrial Average lagged, falling 0.3%.
The week ahead is expected to be another eventful one as investors continue to gauge the outlook for inflation, interest rates, and the economy.
On the economic calendar, most important will be Thursday’s U.S. consumer price inflation report for September, which is forecast to show headline annual CPI cooling to 3.6% from the 3.7% increase seen in August.
The CPI data will be accompanied by the release of the minutes of the Federal Reserve’s last meeting in September, which will surely add to the debate on the U.S. central bank’s next move.
As of Sunday morning, financial markets see a 73% chance of the Fed holding rates at current levels at its November meeting, according to Investing.com’s Fed Rate Monitor Tool, and a 27% chance of a quarter-percentage point rate hike.
Meanwhile, the earnings season officially kicks off on Friday with JPMorgan Chase, Wells Fargo (NYSE:WFC), Citigroup, BlackRock (NYSE:BLK), Delta Air Lines (NYSE:DAL), PepsiCo (NASDAQ:PEP), UnitedHealth Group (NYSE:UNH), and Walgreens Boots Alliance (NASDAQ:WBA) all scheduled to release quarterly results.
Regardless of which direction the market goes next week, below I highlight one stock likely to be in demand and another that could see fresh downside.
Remember though, my timeframe is just for the week ahead, Monday,
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