MarketBeat: Week in Review 5/2 – 5/6

The markets are closing this week on a sour note despite the fact that the jobs report came in with an upside surprise. As of the noon hour, the markets were off the opening lows, but concerns about inflation and the Fed’s pledge of continued rate hikes are outweighing any good news, at least for now. Investors will get another data point next week when the April Consumer Price Index (CPI) is released. If the number comes in as expected, it may be the first sign that inflation (while not falling) is leveling off. However, if the number comes in hot the sell-off is likely to continue. We understand this can be a time when you want to stay on the sidelines. And if you have a short investment timeline, that may be the play. But even on the reddest days, there are stocks to consider if for no other reason than to add to your watch list.  And the MarketBeat team will be on top of the key market movers so you can make informed investment decisions.

Articles by Jea Yu

Last week, Thomas Hughes advised investors that Tractor Supply Company (NASDAQ:TSCO) looked like a potential buy in the second half of the year. This week, Jea Yu weighed in on TSCO stock after its earnings report last week. Yu confirms Hughes’ bullish sentiment and gave our readers suggestions for opportunistic buying opportunities based on the charts. Yu was also looking at Knight-Swift Transportation (NYSE:KNX) as an opportunistic buy. Since the logistics company reported earnings on April 20, KNX stock appears to be convincing investors that rising revenues and margins will allow the company to overcome higher costs that are besetting the sector. And Yu was also advising investors to look at World Wrestling Entertainment (NYSE:WWE) as an opportunistic buy. The stock has been trading in a tight range, but has several catalysts in place that may move WWE stock higher.

Articles by Thomas Hughes

Your MarketBeat contributors generally focus on individual equities to analyze. But when it’s appropriate, we offer our opinion on the macro events affecting the market. Thomas Hughes has been sounding the alarm of a steep market correction for awhile. And before the Fed meeting, Thomas Hughes cautioned investors that the S&P 500 index was at a critical juncture. The relief bounce after the Fed’s announcement may not be ready to issue a 75-basis point hike. However, he wouldn’t have been surprised at all by the reversal that took place the following day. Turning his attention to individual stocks, Hughes saw continued signs of life in the chip sector. Specifically, Hughes was analyzing onsemi (NASDAQ:ON) and pointing out that the company is refocusing its business and is seeing double-digit growth in all three of its business units. And Hughes was also reminding investors that when it comes to looking for value stocks in this market, you could do worse than to look at companies with pricing power such as Kellogg’s (NYSE:K). The consumer staples giant is proving it can raise its prices which led to beats on the top and bottom line without compromising margins.

Articles by Sam Quirke

Starbucks (NASDAQ:SBUX) has been making news, but not always for bullish reasons. This week Sam Quirke walked investors through the current state of play for the company.  As Quirke points out there are some things to like, but there are also some things that should give investors pause before diving in on SBUX stock. Quirke was also looking at Uber (NYSE:UBER) after the company reported earnings this week. Revenue beat estimates, but earnings were a disaster by any measure. That’s why Quirke says that at a time when you need to be picky, there’s not a lot to like about UBER stock. On the other hand, Advanced Micro Devices (NASDAQ:AMD) stood out in a sea of red. AMD stock is beginning to climb as it delivered a double beat on earnings and revenue.

Articles by Chris Markoch

If investors needed any more indication of the bearish sentiment that exists in the market, they wouldn’t have to look further than Chevron (NYSE:CVX). The company posted a great earnings report but the market was in a selling mood. But Chris Markoch points out that investors should take a look at the company’s record free cash flow, its debt reduction, and 34 consecutive years of dividend increases as reasons that the company is a buy-the-dip candidate. Another company in the energy sector that has a bright future that is being affected by short-term volatility is Enphase Energy (NASDAQ:ENPH). The maker of micro-inverters for solar panel installations is a play on energy independence. And with the company’s growth in Europe, ENPH stock looks like an attractive buy. Markoch was also looking at the volatility present in 3M (NYSE:MMM) stock. The company had a double beat but continues to be held back by supply chain issues. However, Markoch points out that its leadership in key areas of disruptive technology makes MMM stock a solid choice for value investors.