MarketBeat: Week in Review 01/02-01/06

Key Points

• Stocks are in rally mode to end the first trading week of the new year.
• The jobs report came in hotter than expected, but wage growth is showing signs of cooling.
• Investors continue to wait for next week’s CPI report and the start of earnings season.
• Here are some of the top stories our analysts were covering this week.

It’s a rally! There’s no telling how long it will last. But as the first trading week of 2023 comes to a close, all three major indexes are in the green. The news of the week comes down to the jobs report. While the number of new jobs created increased than expected, the report showed some evidence that wages are coming down. Next week, investors will get the December consumer price index (CPI) date.

That will likely confirm that inflation will continue to be a theme that affects stocks. But investors are waiting on the start of earnings season. It’s looking like it’s going to be another volatile year. And you can count on the MarketBeat team to stay on all the market-moving events. Here are some of the most popular stories our analysts were covering this week.

Articles by Jea Yu

The Walt Disney Company NYSE: DIS has failed to deliver for shareholders since Bob Iger returned to the helm. But Jea Yu writes that Iger’s commitment to profitability may make DIS stock an attractive buy now that it’s trading at the pre-pandemic level. Another stock that may be ready to take off is the luxury outerwear apparel maker Canada Goose Holdings, Inc. NASDAQ: GOOS.

The stock has been beaten down largely due to the restrictions in China due to its Covid Zero policy. But an easing in those restrictions may be a catalyst in coming quarters. Less risk-tolerant investors may find Duke Energy Co. NYSE: DUK an attractive option.  The regulated utility may benefit from the Inflation Reduction Act passed by the U.S. Congress in 2022. And the company is also selling its Consumer Renewables business, making it a pure-play utility.

Articles by Thomas Hughes

Mullen Automotive NASDAQ: MULN has been one of the most intriguing stories in the EV sector. Thomas Hughes wrote about the possibility of a short squeeze and outlined the firmly entrenched position of the bulls and the bears. Hughes was also looking at a less volatile sector, consumer staples, in writing about two stocks that look to be strong performers in 2023.

The Kraft Heinz Company NYSE: KHC is in the process of executing a turnaround plan, and Hughes notes that investors are beginning to notice the deep value the company is providing. Hughes also discussed KHC stock with MarketBeat’s Laycee Kluin. Another solid pick will be Conagra Brands Inc. NYSE: CAG which posted a beat on the top and bottom lines, which proves why companies that deliver strong earnings are likely to be rewarded.

Articles by Sam Quirke

Sam Quirke was looking at two stocks heading in the same direction but may have different outcomes. The Trade Desk Inc. NASDAQ: TTD is down 65% from its all-time high in 2021. However, stock in the digital ad company with a platform that helps advertisers move beyond walled gardens is starting to show support at levels significantly above pre-pandemic levels, which may be a bullish catalyst in 2023.

Quirke notes that the outlook is less clear for GameStop Corp NYSE: GME. The original meme stock has given up most of the gains it posted from its legendary short squeeze in 2021. And a disappointing earnings report in December continues to serve as an anchor for any investors looking to go long on GME stock.

Articles by Chris Markoch

Mid-cap stocks can frequently be attractive choices for investors looking for diversification. This week Chris Markoch was looking at Flex Ltd NASDAQ: FLEX. The stock was positive in 2022 and looked to be moving higher as the stock is offering both strong earnings and an attractive valuation. Markoch also visited with MarketBeat’s Laycee Kluin to discuss the outlook for Disney stock (hint: he’s not feeling the magic).

Articles by Kate Stalter                                                          

Kate Stalter makes the case that consumer discretionary stocks may be ready to go from “worst to first” in 2023. And if it does,  Amazon NASDAQ: AMZN may lead the way. Analysts are expecting an 18% increase in earnings in 2023. While things may be looking up for Amazon, the outlook for Bed Bath & Beyond, Inc. NASDAQ: BBBY is heading south. As the company continues to miss sales targets and lower future forecasts, Stalter points out that institutional investors are quickly moving away, and the next step could be bankruptcy.

Stalter was also looking at the launch of GE Healthcare Technologies Inc. NASDAQ: GEHC. This is the first of two spin-offs that are expected from General Electric Company NYSE: GE which is focusing on aviation. Shares of the healthcare-focused company were up 12% on the company’s first day of trading.  

Articles by MarketBeat Staff

Dividend stocks will continue to be a solid play for investors in 2023. This week, the MarketBeat staff looked at three dividend contenders – companies that have increased their dividends for more than 10 years but less than 25 years. The staff also continues to believe that the energy sector is a smart play for 2023 and gives you three energy stocks that look to have more in the tank. And it wouldn’t be a week if we weren’t writing about Elon Musk in some fashion. In this case, the staff outlines the case for why Tesla Inc. NASDAQ: TSLA continues to look undervalued and has several emerging catalysts.