MarketBeat Week in Review – 5/1 - 5/5

Key Points

• The jobs number came in hot, but investors seem to be more interested in the downward revisions from prior months. 
• Investors are also basking in the glow of a positive earnings report from Apple and hopes that the Federal Reserve is truly signaling a pause in raising interest rates.  
• Next week will bring the latest readings on inflation when the CPI and PPI are released. 
• And Disney will headline another full week of earnings reports.  
• Here are some of the most popular articles from this week.  

Some like it hot. That’s what some investors said to the April jobs report which came in hotter than expected. Recently, a strong jobs number would be interpreted as bad news for equity markets, but that wasn’t the case as the market popped after the report.  

Maybe that’s because hiring for February and March were revised lower (who knew?). But it’s likely that the market is still on a high after Apple reported strong earnings that cheered investors. Investors are also still interpreting the Federal Reserve’s latest statement and hoping that the Fed’s next move will be to do nothing.  

Next week, investors will get the latest read on inflation when the producer price index (PPI) and consumer price index (CPI) numbers are released. And earnings season rolls on next week and one of the closely watched reports will come from Walt Disney which may provide some clues about the stickiness of revenge travel. The MarketBeat team will be keeping you updated on these and other stories with the potential to move markets. Here were some of the most read articles from this week.  

Articles by Jea Yu 

During earnigns season, many companies lower expectations so their results come in better than expected. Jea Yu wrote that it appeals that’s part of what happened with United Airlines Holdings Inc. NYSE: UAL. The airline lowered its guidance, beat it and then raised its full-year guidance. But as Yu writes, the bigger story is what happens now. The airline is expecting strong travel demand to continue which will help the airline become profitable by the end of the year. Another company that is lowering its guidance is Teladoc Health Inc. NYSE: TDOC. The company is rapidly expanding through acquisition, but now it has to turn that into positive earnings. Yu was also eyeing the dividend for ZIM Integrated Shipping Services Ltd. NYSE: ZIM. A juicy dividend has made ZIM stock one of the most popular stocks of 2023. But as Yu writes, there may be reasons for investors to be concerned about the sustainability of that dividend.  

Articles by Thomas Hughes 

Consumer staples companies continue to perform well in this economy. Thomas Hughes was writing about the strong earnings report delivered by Kellogg Company NYSE: K this week. However, as Hughes notes, shares of K stock are pulling back perhaps because the company’s guidance was not as strong as expected. Hughes was also looking at Starbucks NASDAQ: SBUX which is technically not a consumer staples company, but its loyal customer base suggests otherwise. Yet SBUX stock also sharply corrected after its report. Hughes explains why this looks like an overreaction with both fundamental and technical data suggesting a bullish opportunity is emerging. The opportunity with Camping World NASDAQ: CWH is not as clear to see because of the company’s debt load. But as Hughes notes, not all debt is bad debt and the debt is supported by cash flow which bodes well for both future share price growth and to support the company’s dividend.  

Articles by Sam Quirke 

As Apple Inc. NASDAQ: AAPL goes so goes the market. One reason the market is rallying to end the week is that Apple delivered a better-than-expected earnings report that included an all-time record for Services revenue and a record-setting March for iPhone sales. The strong report from Apple may be just what Qualcomm Inc. NASDAQ: QCOM needs. As Quirke wrote this week, the chip maker reported disappointing earnings and even weaker guidance. But since it supplies many of the chips used in the iPhone, maybe the stock will beat expectations. And sticking with chipmakers, Quirke wrote that shares of Advanced Micro Devices NASDAQ: AMD are also under pressure after delivering weak guidance. But as Quirke writes, this may be an opportunity for patient investors with their eye on the long term.  

Articles by Chris Markoch  

Gold continues to outperform several asset classes as investors look for alternatives to the dollar. Mining stocks are a good way for investors to get exposure to precious metals without some of the obstacles involved with owning the physical metal. Chris Markoch was writing about three junior gold mining stocks that recently reported earnings and explained why one may shine above the others. Markoch was also writing about the drop in Domino’s Pizza, Inc. NYSE: DPZ stock after earnings. This is the second consecutive quarter, DPZ stock has dropped after earnings. But this time around, analysts are more bullish on the stock. And Markoch was also writing that Caterpillar Inc. NYSE: CAT could benefit from a little positive sentiment as the stock is being weighed down as investors are expecting weaker growth in the second half of the year.  

Articles by Kate Stalter  

This week Kate Stalter challenged the conventional orthodoxy to “sell in May and go away.” As Stalter writes, the market is generally quieter during the summer, but that doesn’t mean that there aren’t catalysts that influence stock prices. And as Stalter writes, several sectors are known to outperform the market during the summer months. One of those sectors is consumer staples which is why Stalter also wrote this week that you may want to look at The Hershey Co. NYSE: HSY which is showing strong stock price growth that is supported by earnings growth and a likely hike to its dividend. Another area where investors may look to buck the trend is in small-cap stocks which tend to lead the way when a bear market ends. And Stalter wrote about three small-cap stocks that have rising stock prices and high dividend yields.  

Articles by MarketBeat Staff 

Mega cap stocks are those with the largest market capitalizations. Sometimes investors tend to overlook mega-cap stocks when they’re outperforming the market. However, the MarketBeat staff wrote that investors may want to take a second look at three mega-cap companies that Wall Street loves. Sometimes investors also steer clear of underperforming stocks. But our staff says “not so fast” with three underperforming stocks that are worth a second look. And although the auto industry remains under pressure, our staff identified three auto stocks that have dividend yields that are higher than the broader market.