MarketBeat Week in Review – 2/19 - 2/23

Key Points

• The FOMC dampened any lingering hopes for a March rate cut, but as the week ended, the central question for investors was how long the NVDA rally would last. 
• Walmart and Home Depot showed consumers continue spending on essentials, but discretionary spending remains tight.  
• Investors will get more information next week. In the meantime, here are some of our most-read articles this week.  

Early this week, the release of the FOMC minutes made it clear that the odds of a March rate cut are essentially zero. However, as the week ended, the only question on investors' minds was how long the Nvidia Corp. NASDAQ: NVDA rally last.  

It's an often-overused statement, but the chip maker crushed earnings after the market closed on Wednesday. The results show that the artificial intelligence (AI) wave that began in 2023 is still in its infancy. And investors should pay attention to companies providing the critical infrastructure for AI.  

The news wasn't all good this week. Walmart and Home Depot reported and showed that the consumer may still be spending, but they are slowing down. Investors will learn more next week as earnings season rolls on with Domino's Pizza Inc. NYSE: DPZ reporting on Monday. The company has served as a proxy for the state of the consumer. While you wait, here are some of our most-read articles this week.  

Articles by Jea Yu 

Whether you missed Nvidia or not, you may be looking for the next hot AI stock. This week, Jea Yu wrote about Informatica Inc. NASDAQ: INFA. The company's AI platform delivers the data management capabilities needed for generative AI and was a key reason the company delivered strong quarterly earnings and raised its full-year 2024 guidance.  

The focus on everything AI has muted the strong rally in cryptocurrency, specifically Bitcoin (BTC). But even if you don't play in the crypto markets, you may want to pay attention to Robinhood Markets Inc. NASDAQ: HOOD. Yu points out that the online brokerage and financial services company posted strong revenue growth due to a higher volume of crypto trading.  

Yu also wrote about the pain many health insurers feel from Medicare Advantage plans. But as Yu points out, that pain hasn't affected UnitedHealth Group Inc. NYSE: UNH quite as acutely. However, the question remains if this is a "not yet" scenario.  

Articles by Thomas Hughes 

Thomas Hughes was on top of many of the top earnings reports this week, starting with Walmart Inc. NYSE: WMT and Home Depot NYSE: HD. While Walmart still looks like a buy, Hughes advised investors to wait for the company's 3-for-1 stock split to take place before getting involved.  

The story with Home Depot is murkier. The company's earnings report and guidance were weaker than expected. Hughes writes that HD stock continues to be range-bound and most likely has further to drop before reaching a buyable point.  

Hughes also summarized and helped investors understand the blowout earnings report from Nvidia Corporation NASDAQ: NVDA. The company provides the essential chips that businesses can't get enough of. And while there will be a normalizing of demand at some point, that day is not today.  

Articles by Sam Quirke 

The Trade Desk Inc. NASDAQ: TTD surged toward a key resistance level after its earnings report last week. However, Sam Quirke believes there may be room for TTD stock to move significantly higher. This week, he gives investors three reasons to believe that The Trade Desk may soon power to a new all-time high.  

On the other hand, Roku Inc. NASDAQ: ROKU is moving lower after earnings. However, Sam Quirke reminds investors that this isn't an unusual pattern for ROKU stock. The company's bullish outlook may take some time to be confirmed, but Quirke explains why investors should consider Roku a very oversold buy.  

Articles by Chris Markoch 

At a time when many companies are looking to get bigger through acquisition, Carrier Global Corp. NYSE: CARR is taking a different approach. As Chris Markoch wrote this week, the company just reported its last earnings with its security business. This is on the heels of the company selling its Commercial Refrigeration business. However, Markoch writes that investors may need more time to see if the leaner company is a good buy.  

The story for Teladoc Health Inc. NASDAQ: TDOC is even more dire for investors. The telehealth company is growing, but slowly. And that will have to change before TDOC stock will look attractive to investors.  

Articles by Kate Stalter  

Precious metals can be an attractive way to diversify your portfolio. Gold is usually the most debated investment. But this week, Kate Stalter explains why silver may be the better investment in 2024. Before you dismiss what Stalter has to say, remember this was one of our most-read articles, so investors are still looking for ways to hedge against market volatility.  

Another good way to hedge is with dividend-paying stocks that can provide reliable income. This week, Stalter pointed investors to five dividend aristocrats (companies that have increased their dividends for at least 25 consecutive years) that offer investors an attractive yield. 

One of the big stories that grabbed headlines early in the week but dropped off after Nvidia earnings was the proposed merger of Capital One Financial Corp. NYSE: COF and Discover Financial Services NYSE: DFS. This would be a massive deal and will likely draw regulatory scrutiny. However, Stalter explains why regulators may take a shine to this deal for the way it would spread the wealth among more companies.  

Articles by Ryan Hasson 

Nvidia will likely have long coattails for Artificial Intelligence stocks. This week, Ryan Hasson explains why Advanced Micro Devices Inc. NASDAQ: AMD is one of the obvious beneficiaries of the Nvidia rally. AMD stock is up 20% for the year and is approaching a breakout level on the tailwind of the Nvidia report.  

Hasson also wrote about Super Micro Computer Inc. NASDAQ: SMCI, which could be another way to invest in AI. The company makes computers tailored for data center use, which support, among other things, AI applications. SMCI stock recently crested the $1,000 per share mark but has pulled back, which could create a better entry point. 

And could there be a breakout in the retail sector? Hasson explains why investors should look beyond the headlines and pay attention to what's happening with the SPDR S&P 500 Retail ETF NYSE: XRT, which is positive year-to-date and may suggest better days for select retail stocks.  

Articles by Gabriel Osorio-Mazilli 

Realty Income Inc. NYSE: O is one of the most popular dividend stocks in any market. However, Gabriel Osorio-Mazilli reminds investors that the company may look even more attractive if the Federal Reserve cuts interest rates, which should spark the real estate market.  

If you're an income investor who wants to stay away from the real estate market, the oil and gas market may be a better option. With oil prices likely to rise, you might want to consider Marathon Oil Corp. NYSE: MRO, which may provide the highest upside and growth potential in an oversold market.  

Warren Buffett may disagree with that. In addition to his recent investments in Occidental Petroleum Corp. NYSE: OXY, the Oracle of Omaha recently took some profits from Apple, Inc. NASDAQ: AAPL and put them into Chevron Corp. NYSE: CVX, which is another Buffett favorite in the sector.