1 Stock to Buy, 1 Stock to Sell This Week: Walmart, Target
Wall Street's main indices ended mostly lower on Friday, after hotter-than-expected wholesale inflation data fueled expectations that the Federal Reserve will keep interest rates higher for longer.
For the week, the benchmark S&P 500 and technology-heavy Nasdaq Composite fell 0.3% and 1.9%, respectively, with both recording a second straight weekly decline. The small-cap Russell 2000 lost 1.6%.
The blue-chip Dow Jones Industrial Average was the outlier of the major averages, rising 0.6% on the week.
Next week is expected to be another eventful one as investors continue to gauge the outlook for the economy, inflation, and interest rates.
On the economic calendar, most important will be Tuesday’s U.S. retail sales report for July, with economists estimating a headline increase of +0.4% after spending rose +0.2% during the prior month.
Meanwhile, the release of the Fed minutes on Wednesday will also be watched closely for any clues on the outlook for monetary policy. Currently, financial markets are pricing in just a 10% chance of a 25 basis point rate hike at the next policy meeting in September, according to Investing.com’s Fed Rate Monitor Tool.
Elsewhere, on the earnings docket, there are just a handful of corporate results due, including Home Depot (NYSE:HD), TJX Companies (NYSE:TJX), Ross Stores (NASDAQ:ROST), Cisco (NASDAQ:CSCO), Palo Alto Networks (NASDAQ:PANW), Applied Materials (NASDAQ:AMAT), and Deere (NYSE:DE).
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 the week ahead, August 14 — August 18.
After closing at a new all-time high on Friday, I expect Walmart's
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