1 Stock to Buy, 1 Stock to Sell This Week: Walmart, Home Depot
Wall Street rallied on Friday, with the tech-heavy Nasdaq Composite posting its biggest one-day percentage gain since May 26, amid growing doubts that the Federal Reserve will raise interest rates again.
For the week, the blue-chip Dow Jones Industrial Average rose about 0.7%, the benchmark S&P 500 climbed 1.3%, and the Nasdaq jumped 2.4%.
The week ahead is expected to be another busy one as investors continue to gauge whether the Fed might be done raising rates to control inflation and when the central bank could start cutting rates.
On the economic calendar, most important will be Tuesday’s U.S. consumer price inflation report for October, which is forecast to show headline annual CPI cooling to 3.3% from the 3.7% increase seen in September.
The CPI data will be accompanied by the release of the latest retail sales figures as well as a report on producer prices, will help fill out the inflation picture.
As of Sunday morning, financial markets see a 90% chance of the Fed holding rates at current levels at its December meeting, according to Investing.com’s Fed Rate Monitor Tool, and just a 10% chance of a quarter-percentage point rate hike.
Meanwhile, the reporting season’s last big week sees earning roll in from several retailers such as Walmart, Home Depot, Target (NYSE:TGT), Macy’s (NYSE:M), TJX Companies (NYSE:TJX), and Ross Stores (NASDAQ:ROST). Other notable companies include Cisco (NASDAQ:CSCO), Palo Alto Networks (NASDAQ:PANW), Alibaba (NYSE:BABA), JD.com (NASDAQ:JD), Tencent Holdings (OTC:TCEHY), and Xpeng (NYSE:XPEV).
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
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