MarketBeat Week in Review – 01/13 - 01/17

This week marked a significant turnaround in the stock market as the recent sell-off reversed itself due to unexpected good news regarding inflation. The consumer price index (CPI) suggested that the hoped-for soft landing scenario for the economy may still be achievable by 2025. This sparks optimism for a robust earnings season ahead, particularly as major tech companies prepare to release their financial results in the coming weeks. Early signals from the big banks have been promising, providing a glimpse of what could be a positive trend.

Nevertheless, the solid earnings from banks came with cautionary notes about the ongoing wealth divide impacting consumer spending habits. Target Corp. (NYSE: TGT) illustrated this point by projecting weaker profit margins despite reporting better-than-expected revenue. This serves as a reminder that not all sectors are performing evenly.

The U.S. stock market will be on break on Monday to honor Martin Luther King Jr. Day. During this time, as political shifts occur in Washington, investors will be keenly observant of any potential changes in government policy. Market analysts are committed to keeping investors updated on the key movements in stocks. Below is a roundup of this week’s featured articles.

Insights from Market Analysts

Jea Yu, one of several analysts, explored opportunities arising from the increase in natural gas prices. He identified multiple factors supporting this trend and recommended two exchange-traded funds (ETFs) that could help swing traders benefit from the fluctuations in natural gas futures. Yu also discussed the upcoming inauguration of Donald Trump, which is likely to heighten concerns regarding tariffs, particularly related to key imports.

Ford Motor Co. (NYSE: F) had a challenging year in 2024, lagging behind other automotive stocks. The company’s concentration on electric vehicles (EVs) remains firm, although it will take time before EV sales surpass those of traditional gasoline vehicles. Yu provided an analytical perspective on Ford’s strategy and stock outlook.

Thomas Hughes shared insights on the market's changing sentiment this week, explaining why persistent inflation could mean interest rates will stay high for longer. He emphasized that without balancing the Federal Reserve’s mandates, a rate hike seems more likely.

Sam Quirke analyzed Nike Inc. (NYSE: NKE), which, despite its famous slogan “Just Do It,” has seen its stock values decline over the last few years. Quirke argued that 2025 could mark the beginning of recovery for the brand. He also reviewed Snowflake Inc. (NYSE: SNOW), which has experienced a revival lately but remains far from its former peaks, pondering the implications of recent analyst updates.

Chris Markoch turned attention to SoundHound AI Inc. (NASDAQ: SOUN), which has become a hot topic in the AI space. He contemplated whether SoundHound’s newest partnership with Lucid Group Inc. (NASDAQ: LCID) could help Lucid attain profitability in an increasingly competitive EV market. Markoch examined the recent decline in Palantir Technologies Inc. (NASDAQ: PLTR) stock, considering the company’s valuation that has prompted analysts to become more optimistic as earnings approaches.

Ryan Hasson highlighted three high-dividend stocks that seem stable and relatively safe during volatile market conditions. He also discussed Vistra Corp. (NYSE: VST), which has enjoyed a remarkable 260% rise in its stock in 2024, reflecting its strategic shift to renewable energy and positioning in response to AI-driven energy demand.

In light of the recent volatility, several analysts have investigated the potential of defensive stocks that typically maintain performance during downturns. Gabriel Osorio-Mazilli reported on the U.S. Supreme Court's decision to uphold the TikTok ban and suggested four social media stocks that could be beneficial amid this change.

Leo Miller looked into AI stocks, particularly lesser-known, low-cost names that might present substantial growth opportunities. Specifically, he analyzed Cerence Inc. (NASDAQ: CRNC) and BigBear.ai Holdings Inc. (NYSE: BBAI), with a focus on the competitive landscape in AI-driven analytics.

Finally, Nathan Reiff joined in the discussion on defensive stocks, highlighting the need for reliable growth opportunities after a period of strong market performance. He also reviewed various ETFs that track the Volatility Index (VIX) and suggested high-risk, high-reward stocks that investors should monitor.

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