1 Stock to Buy, 1 Stock to Sell This Week: Netflix, Goldman Sachs
Stocks on Wall Street ended mostly lower on Friday, as investors continued to assess the outlook for the economy, inflation, interest rates and corporate earnings.
Despite Friday’s downbeat performance, all three major U.S. stock indexes notched impressive weekly gains as cooling inflation data eased fears about higher interest rates.
For the week, the blue-chip Dow Jones Industrial Average rose 2.3% to mark its biggest weekly increase since March. The S&P 500 and the Nasdaq, meanwhile, tacked on 2.4% and 3.3% respectively.
The week ahead is expected to be another busy one as Q2 earnings season shifts into high gear, with reports expected from several high-profile companies, including Tesla (NASDAQ:TSLA), IBM (NYSE:IBM), Bank of America (NYSE:BAC), Morgan Stanley (NYSE:MS), American Express (NYSE:AXP), Johnson & Johnson (NYSE:JNJ), American Airlines (NASDAQ:AAL), United Airlines (NASDAQ:UAL), and Taiwan Semiconductor (NYSE:TSM).
In addition to earnings, most important on the economic calendar will be Tuesday’s U.S. retail sales report for June, with economists estimating a headline increase of +0.5% after sales rose +0.3% during the prior month.
Meanwhile, Federal Reserve officials will be in a blackout period ahead of the U.S. central bank’s policy meeting scheduled for July 25-26.
As of Sunday morning, financial markets are pricing in a 97% chance of a 25 basis point rate hike at this month’s meeting, according to the Investing.com Fed Rate Monitor Tool.
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 17-21.
I believe Netflix's (NASDAQ:NFLX) stock will outperform
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