MarketBeat: Week in Review 12/05 – 12/09

Key Points

• The market is struggling to find direction after a hotter-than-expected PPI report.
• The number shows that inflation will remain the top issue for investors and the Federal Reserve.
• Expect more volatility next week with the release of the latest CPI and the Federal Reserve’s decision on interest rates.
• Here are some of the most popular articles from the MarketBeat team this week.

The market is looking for direction after the November Producer Price Index (PPI) number came in hotter than expected. After initially turning lower, the markets are bouncing between losses and gains in early morning trading. Next week will bring the latest reading on the consumer price index (CPI) as well as the Federal Reserve’s decision on interest rates. Most observers believe that the market has already baked in a 50 basis point increase to the Fed rate. As long as the market doesn’t get a steeper rate hike, there may still be room for a Santa Claus rally. There’s no lack of news to move the market, and the MarketBeat team is here to help you make sense of all of it. Here are some of the top stories our analysts were covering this week.

Articles by Jea Yu

Many investors are choosing to stay away from Chinese stocks. Like any sector, however, there are opportunities in the sector. One stock that Jea Yu believes could be one of those opportunities is Pinduoduo (NASDAQ: PDD). The company combines elements of social media and e-commerce which is a model that is delivering impressive topline growth. Yu was also looking at the recent news surrounding Intel (NASDAQ: INTC). Its commitment to manufacture chips in the United States has taken years to play out. But patient investors may finally see their patience rewarded as Intel appears to be a sleeping giant as one of the largest beneficiaries of the CHIPS act. And, for investors looking for less risk in the tech sector, Yu analyzes Pure Storage (NYSE:PSTG). The enterprise data storage solutions provider is an essential supplier for more than half of the Fortune 500.

Articles by Thomas Hughes

Many investors are wondering if the Federal Reserve will “pivot” from its current campaign of raising interest rates. Thomas Hughes explains why the Federal Reserve’s dual mandate will eventually cause them to lower rates. But Hughes also cautions that the pivot may not happen until late in 2023. That may be too late for shareholders of GameStop (NYSE: GME). The original meme stock has seen its shares drop over 40% this year. And as Hughes points out GME stock is close to a key level of support. If it fails to hold that level, the stock could be headed down to levels investors haven’t seen since before the short squeeze in 2021. Hughes was also looking at the recent headwinds facing Tesla (NASDAQ: TSLA). Just when the electric vehicle movement appears to be gaining traction, an end of subsidies in China combined with concerns about global demand suggests that the drop in the TSLA stock price may be warranted, but that it may still be a buy.

Articles by Sam Quirke

It goes without saying that 2022 has been a difficult year for investors in the technology sector. As tends to be the case, the tech stocks that provided investors with the strongest gains are also dealing them the steepest losses. But as Sam Quirke points out, it may be a different story in 2023. And companies like Apple (NASDAQ: AAPL) and Amazon (NASDAQ: AMZN) are likely to lead the way. Quirke gives our readers the fundamental and technical case for each stock.  

Articles by Chris Markoch

The MarketBeat team is continually looking for ways to deliver content related to the stocks you care about most. With that in mind, Chris Markoch gave subscribers this article that highlights the 10 most searched stocks on MarketBeat with some insight on the short-term outlook for each. Markoch was also writing about one of the bigger news stories of the week. Carvana (NYSE: CVNA) shares are down sharply as investors are becoming increasingly concerned about the possibility of the company filing for bankruptcy. Even if they don’t, Markoch advises investors why CVNA stock is only for the most risk-tolerant investors.

Articles by Kate Stalter            

Shipping stocks were expected to be a strong sector as supply chains become less tangled. That hasn’t been the case, largely due to the Covid lockdowns in China. However, as Kate Staler writes, analysts still give ZIM Integrated Shipping Services (NYSE: ZIM) a hold rating which suggests they see some upside for the stock. Stalter was also looking at another stock that investors have been tuning out. In the case of Spotify (NYSE: SPOT) Stalter observes that the chart suggests a bottom may be forming and analysts are expecting strong growth in the next 12 to 18 months. Stalter was also looking at Pfizer (NYSE: PFE) and Johnson & Johnson (NYSE: JNJ) which have been outperforming the broader market this year and have technical setups that suggest more upside ahead.

Articles by MarketBeat Staff

What does it mean to be a profitable trader and how long does it take to become one? Those are questions that a lot of investors have been asking. But as the MarketBeat staff explains becoming a consistently profitable trader takes time. And the definition of success will be different for every investor. The staff was also looking at consumer cyclical stocks. The sector is making a comeback and we give you three cyclical stocks that may reverse their fortunes in 2023. More risk-averse investors may want to stick with dividend stocks. If that’s the case, we offer this article which highlights three dividend kings that offer some capital appreciation along with a rock-solid dividend.