1 Stock to Buy, 1 Stock to Sell This Week: Nvidia, Target
• Fed speakers and Nvidia earnings will be in focus this week.
• Nvidia is a buy with another huge beat-and-raise quarter on deck.
• Target is a sell amid declining sales, downbeat outlook expected.
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U.S. stocks finished lower on Friday, with the S&P 500 and Nasdaq notching their biggest one-day losses in two weeks, as a post-election rally ran out of steam and investors worried over the path of interest rates.
For the week, the S&P 500 fell 2.1%, while the tech-heavy Nasdaq Composite declined 3.1%. The blue-chip Dow Jones Industrial Average lost 1.2% during the period.
Source: Investing.com
The week ahead is expected to be an eventful one as investors continue to assess the outlook for the economy, inflation, interest rates and corporate earnings.
On the economic calendar, flash PMI readings on manufacturing and the services sector will grab attention on Friday, along with updates on the housing market.
That will be accompanied by a heavy slate of Fed speakers, with the likes of district governors Jeffrey Schmid, Lisa Cook, Michelle Bowman, and Beth Hammack all set to make public appearances.
Source: Investing.com
Expectations for a 25-basis point rate cut at the Fed’s December meeting stood at 63% on Sunday morning, according to the Investing.com Fed Monitor Tool.
Elsewhere, in corporate earnings, Nvidia (NASDAQ:NVDA)’s results will be the key update of the week as the Q3 reporting season quiets down. Other notable names lined up to report earnings include Walmart (NYSE:WMT), Target (NYSE:TGT), TJX Companies (NYSE:TJX), Ross Stores (NASDAQ:ROST), Lowe’s (NYSE:LOW), Palo Alto Networks (NASDAQ:PANW), and Snowflake (NYSE:SNOW).
Regardless of which direction the market goes, 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, Monday, November 18 – Friday, November 22.
Nvidia is poised for significant gains this week, as the tech giant prepares to deliver another beat-and-raise quarterly earnings report amid surging demand for its AI chips.
The Santa Clara-based company is set to release its Q3 earnings after the market closes on Wednesday at 4:20PM ET, with expectations running high for another record-breaking performance. A call with CEO Jensen Huang is set for 5:00PM ET.
Market participants expect a sizable swing in NVDA shares following the print, as per the options market, with a possible implied move of 9.8% in either direction.
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