1 Stock to Buy, 1 Stock to Sell This Week: Dick’s Sporting Goods, Macy’s
Wall Street's main indices ended mostly lower on Friday, capping off a losing week as the stock market's August struggles continue amid worries that the Federal Reserve will keep interest rates higher for longer.
For the week, the blue-chip Dow Jones Industrial Average declined 2.2%, while the benchmark S&P 500 and technology-heavy Nasdaq Composite fell 2.1% and 2.6%, respectively, to notch their third straight week of losses.
The Nasdaq has now fallen 7.2% in the past three weeks, its worst three-week drop since late December.
Next week is expected to be another eventful one as attention turns to the Fed’s annual Economic Policy Symposium, which will take place in Jackson Hole, Wyoming, starting on Thursday.
Investors will scrutinize a speech from Fed Chair Jerome Powell on Friday for clues on the outlook for interest rates.
Currently, financial markets see an 89% chance of the Fed holding rates at current levels at its September meeting, according to Investing.com’s Fed Rate Monitor Tool.
Elsewhere, on the earnings docket, there are just a handful of corporate results due as Q2 earning season winds down, including market darling Nvidia (NASDAQ:NVDA) on Wednesday. The chip designer has had a spectacular rally on expected growth in artificial intelligence, nearly tripling in value year-to-date.
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 21 — August 25.
I believe Dick’s Sporting Goods' (NYSE:DKS) stock will outperform in the week ahead, with a potential breakout to a new record high on the horizon, as the athletic-gear retailer’s second quarter
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