MarketBeat Week in Review – 05/05 - 05/09

Key Points

• Equities reversed course after the Trump administration announced the framework for its first trade deal.
• The bullish sentiment came despite the Federal Reserve holding interest rates steady.
• Investors will get the latest reading on inflation when the April CPI and PPI are released; both numbers are not expected to show much change from the prior month.

Equities moved higher this week as investors cheered news of the Trump administration’s first trade deal. More importantly, talks between the U.S. and China this week may signal more clarity around trading with the country’s largest trading partner.

The trade deal reversed the bearish momentum in stocks after the Federal Reserve left interest rates unchanged. Next week, investors will get the next inflation reading, the April reading of the Consumer Price Index (CPI) and Producer Price Index (PPI). Both numbers are expected to be in line with expectations, which could push future rate cuts later into the year, if at all.

The peak of earnings season is past, but there will still be many names reporting next week. Investors continue to focus less on the headline number and more on the guidance, which has generally been mixed to lower. Without further clarity on trade deals, it could keep resistance on the S&P 500 at around the 5,700 level. You can count on the MarketBeat analysts to keep you informed about the stocks and stories moving the markets. Here are some of our most popular stories from this week.

Articles by Thomas Hughes

United Parcel Service Inc. NYSE: UPS is considered a bellwether for the economy. But as Thomas Hughes wrote this week, it appears that the worst has been priced into the stock. This supports his thesis that UPS stock could be set up as a generational buying opportunity after a solid earnings report, even if the turnaround will take a couple of quarters to materialize.

One of the hopeful applications for artificial intelligence (AI) is in the area of drug discovery. Tempus AI Inc. NASDAQ: TEM is a leader in this area. Short sellers have kept the stock price down, but Hughes explained why the company’s positive earnings report is stirring interest from institutions and could set the stage for a significant rally.

Speaking of short sellers, Hughes wrote about the impact of a short report on Monster Beverage Inc. NASDAQ: MNST stock. However, Hughes cautioned investors about the prospects for a short squeeze and explained why MNST stock may do just fine without one.

Articles by Sam Quirke

Is the worst behind Tesla Inc. NASDAQ: TSLA? Shares of TSLA stock are up 30% from before the company’s earnings report. Sam Quirke explained why technical signals and analyst sentiment point to an extended rally in the beaten-down stock.

What a difference a week makes. Shares of Amazon.com Inc. NASDAQ: AMZN stock dropped after a mostly positive earnings report. However, Quirke pointed out the rally in AMZN stock this week as evidence that investors are turning more bullish now that they’ve had a chance to digest the report.

The same can’t be said for Qualcomm Inc. NASDAQ: QCOM. After a post-earnings rally, Quirke explained why QCOM stock was struggling to find direction and why mixed analyst sentiment is likely to weigh on any immediate upside.

Articles by Chris Markoch

Palantir Technologies Inc. NASDAQ: PLTR kicked off this week with a blockbuster earnings report. But shares fell sharply after the report over concerns about future earnings growth for an objectively overvalued stock. Chris Markoch broke down the report and explained why investors shouldn’t allow traders' short-term actions to impact their long-term outlook.

Is the magic back for The Walt Disney Co. NYSE: DIS? It was for at least the past quarter. Disney delivered a stellar earnings report with strong results from its theme parks and a record number of Disney+ subscribers. However, Markoch cautioned investors that sharp price action may not lead to a sustainable rebound.

After delivering a solid earnings report last week, Microsoft Corp. NASDAQ: MSFT announced it would be raising the price of its popular Xbox gaming console. While this decision shows that Microsoft is not immune to tariff concerns, Markoch explained that the scope of this business shouldn’t be enough to derail the stock’s bullish momentum.

Articles by Ryan Hasson

When you’re a high-flying stock like Rocket Lab USA Inc. NASDAQ: RKLB, earnings reports can make or break short-term momentum. Rocket Lab reported earnings on May 8, but before the report came out, Ryan Hasson outlined the key things that investors should watch for in the report.

One sign that bullish sentiment may be returning to the market is that investors are looking at mid-cap stocks. This week, Hasson analyzed three mid-cap medical stocks with strong momentum, bullish analyst sentiment, and the potential to move higher.

Alphabet Inc. NASDAQ: GOOGL stock remains under pressure as threats to its massive search business continue to pop up. The latest threat comes from Apple Inc. NASDAQ: AAPL, which is making moves that could remove Google as the default search engine on Safari. But Hasson explained that the company has other revenue levers to pull from, and that’s why the stock may be undervalued.

Articles by Gabriel Osorio-Mazilli

Many companies use earnings season as an opportunity to announce share buybacks. That was the case with Wells Fargo & Co. NYSE: WFC, which announced an impressive $40 billion buyback program. Gabriel Osorio-Mazilli reminded investors that it’s important to consider why a company may want to buy back its stock. In the case of Wells Fargo, Osorio-Mazilli explained it could be a case of the worst outcome for the bank already being priced in.

One of the most anticipated earnings reports among technology stocks came from Super Micro Computer Inc. NASDAQ: SMCI. Osorio-Mazilli previewed the earnings report, which comes with the hope that the company’s accounting irregularities are behind it.

If the bulls are getting ready to run, the surge in Bitcoin may turn out to be the signal and not more noise. If that’s the case, investors may want to consider Bitcoin-related stocks. Osorio-Mazilli helped you with your research by highlighting three bitcoin stocks that provide indirect exposure with less risk.

Articles by Leo Miller

Many investors are familiar with the idiom of a rising tide lifting all boats. Leo Miller used that thesis to describe the outlook for Broadcom Inc. NASDAQ: AVGO. AVGO stock is rising after several hyperscalers delivered bullish earnings reports. As Miller explained, it’s not about whether these are Broadcom customers; it’s that the reports are solidifying the AI infrastructure outlook.

As mentioned above, earnings season is a time for buybacks and/or dividend announcements. This week, Miller spotlighted three technology companies that announced stock buyback commitments totaling $85 billion.

Even as growth investors come back to the market, it’s still a good market for value hunters. To help the search, Miller analyzed three sectors that appear to be significantly undervalued based on a low forward price-to-earnings (P/E) ratio.

Articles by Nathan Reiff

D-Wave Quantum Inc. NYSE: QBTS continues to be one of the most popular and polarizing stocks in the quantum computing sector. This week, Nathan Reiff examined the stock’s recent price action and helped investors understand the opportunity and risk that QBTS stock presents.

Even though the Magnificent Seven stocks may be struggling to regain their luster, Reiff reminded investors that tech stocks are still in favor. But investors are being more discerning and looking for undervalued stocks that analysts love. With that as the goal, Reiff gave investors three tech stocks with niche market appeal and analyst approval.

Another area for tech investors to look for growth is companies that focus on cloud computing infrastructure. Reiff explained that despite the maturity of the cloud industry, there’s still room for these infrastructure stocks to move higher. Read his article to get three stock picks in this massive space.