MarketBeat Week in Review – 01/06 - 01/10

In the week of January 6 to January 10, the stock market faced a significant downturn. Stocks erased all the gains achieved following the recent elections after the December jobs report exceeded expectations. This report prompted an increase in bond yields, with the interest rate on the 10-year Treasury note surpassing 4.7%, while the 30-year Treasury note approached 5%. This rise in yields is seen as a negative indicator for the housing market.

As the understanding of the economic landscape evolves, investors are now grappling with the possibility that there may not be any interest rate cuts until 2025. The situation may become more precarious when the December inflation figures are released next week. Should these figures confirm a rise in inflation, stock values could face further declines. Additionally, potential policies from President-elect Donald Trump are likely to be inflationary in the short term, adding to concerns.

Next week also marks the commencement of the next earnings season, beginning with reports from major banks. If these banks report on the strong earnings growth that analysts expect, it could help stabilize the current market sell-off. The start of 2025 has proven to be volatile, but the insights from industry analysts can assist in navigating these turbulent times.

Amid this market shifting, certain sectors are emerging as potential investment opportunities. Healthcare stocks are drawing attention. The Cigna Group Inc. (NYSE: CI) is becoming recognized as a premier health insurance company worth watching for investors focusing on healthcare opportunities in 2025.

Investors who initially invested in gene editing stocks have felt disappointment due to the slow progress in this sector. However, there are signs of ongoing advancements. Prospective investors are presented with three gene editing stocks that may rebound in 2025.

On January 20, President-elect Trump plans to sign executive orders to promote U.S. oil production and exploration. This move is expected to bolster energy stocks. Furthermore, three additional stocks are highlighted that are likely to benefit from reduced fuel costs and increased airline profitability.

NVIDIA's Influence

NVIDIA Corp. (NASDAQ: NVDA) continues to dominate discussions in the market. Insights from NVIDIA CEO Jensen Huang at the Consumer Electronics Show (CES) indicate that new technological innovations could help the stock exceed earnings expectations for the year. This growth potential positions NVIDIA as a key player in the current market landscape.

Natural gas stocks are also worth noting amidst ongoing demands, leading to increased interest in this sector. Investors might want to consider three specific natural gas stocks and ETFs as demand surges in light of winter conditions.

Congressional stock trading remains a hot topic among investors. A review of the five most purchased stocks by Congress members in 2024 suggests they may continue to be strong performers as we move into 2025.

Dividend Stocks and Value Investments

Stocks that pay dividends are attracting considerable attention, particularly the Dividend Kings. These companies have consistently increased their dividends for over 50 consecutive years. Highlighted in recent discussions, three specific Dividend Kings promise to reward investors, regardless of overall market performance.

The small-cap stocks, as indicated by the recent performance of the Russell 2000, could indicate a breakout year ahead. Investors seeking potential long-term gains might want to look into three identified penny stocks.

Additionally, the stock Moderna Inc. (NASDAQ: MRNA) experienced a surge this week, alongside other vaccine makers, due to concerns over a recent bird flu case in the U.S. Even though the rally was short-lived, analysts view Moderna’s vaccine pipeline as a good speculative buy opportunity.

Looking beyond the United States in e-commerce, investors are encouraged to explore MercadoLibre Inc. (NASDAQ: MELI), which has positioned itself strongly in the Latin American market. Despite recent stock declines from its peak, this represents an investment opportunity.

As a newer player in the AI infrastructure space, Nebius Group NV (NASDAQ: NBIS) has recently made its public trading debut. Analysts are eager to evaluate NVIDIA’s investment in the company and its potential for growth.

Investors looking for value stocks may want to explore companies that are currently undervalued, as well as those with high short interest that might trigger a short squeeze.

Conclusion

With the beginning of a new earnings season approaching, several companies are expected to announce stock buybacks. Historically, stocks that have recently authorized buybacks offer attractive prospects for future growth. Investors are encouraged to identify stocks that offer compelling buyback potential as 2025 unfolds.

stocks, bonds, investing