1 Stock to Buy, 1 Stock to Sell This Week: JPMorgan Chase, Boeing
U.S. stocks closed slightly higher on Friday to wrap up the first trading week of 2024, however the major averages suffered their first weekly decline in ten weeks amid growing uncertainty over when the Federal Reserve may begin to cut interest rates.
For the week, the blue-chip Dow Jones Industrial Average shed 0.6%, the benchmark S&P 500 declined 1.5%, and the tech-heavy Nasdaq Composite slumped 3.3%.
For the S&P 500, it was its worst weekly performance since late October, while the Nasdaq posted its worst week since late September.
On the economic calendar, most important will be Thursday’s U.S. consumer price inflation report for December, which is forecast to show headline annual CPI accelerating to 3.2% from the 3.1% increase recorded in November.
As of Sunday morning, financial markets see a 32% chance of the Fed holding rates at current levels at its March meeting, according to Investing.com’s Fed Rate Monitor Tool, and a 68% chance of a quarter-percentage point rate cut.
Meanwhile, the earnings season officially kicks off on Friday with JPMorgan Chase, Bank of America (NYSE:BAC), Wells Fargo (NYSE:WFC), Citigroup (NYSE:C), BlackRock (NYSE:BLK), Delta Air Lines (NYSE:DAL), 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 fresh downside.
Remember though, my timeframe is just for the week ahead, Monday, January 8 — Friday, January 12.
After closing at a new all-time high on Friday, I expect another strong performance from JPMorgan Chase (NYSE:JPM) this week as the financial services giant’s latest financial results will easily top estimates thanks to a robust
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