1 Stock to Buy, 1 Stock to Sell This Week: Delta Air Lines, Citigroup
Wall Street's main indices ended lower on Friday, capping off a losing week as investors digested a U.S.jobs report that failed to shake off fears that the Federal Reserve may start hiking interest rates again later this month.
The U.S. added the fewest jobs in more than two years in June, although persistently high wage growth pointed to still-tight labor market conditions, U.S. government data showed.
For the week, the blue-chip Dow Jones Industrial Average fell roughly 2%, while the benchmark S&P 500 and technology-heavy Nasdaq Composite declined around 1.2% and 0.9% respectively. The small-cap Russell 2000 slumped 1.4%.
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 Wednesday’s U.S. consumer price inflation report for June, which is forecast to show headline annual CPI cooling to 3.1% from the 4.0% increase seen in May.
The CPI data will be accompanied by a heavy slate of Federal Reserve speakers, which will surely add to the debate on the U.S. central bank’s next move.
Currently, financial markets are pricing in a 93% chance of a 25 basis point rate hike at the next policy meeting on July 26, according to Investing.com’s Fed Rate Monitor Tool.
Meanwhile, the earnings season officially kicks off on Friday with JPMorgan Chase (NYSE:JPM), Wells Fargo (NYSE:WFC), and UnitedHealth Group (NYSE:UNH) all scheduled to release quarterly results.
Regardless of which direction the market goes, below I highlight one stock likely to be in demand and another which could see further downside.
Remember though, my timeframe is just for the week ahead, July 10-14.
I expect Delta Air Lines
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