MarketBeat Week in Review – 6/26 - 6/30

Key Points

• Markets closed the week on a high note after the PCE index came in lower than expected.  
• Traders are looking for any sign that the Fed is at, or near, the end of its rate hiking campaign.  
• Next week will be a shortened trading week due to the July 4 holiday in the United States. 
• The highlight on the economic front will be the jobs report which comes out on July 7. 
• Here are some of the most popular articles from this week.  

Markets headed into a holiday week on a high note. Investors cheered a lower-than-expected reading on the Personal Consumption Expenditures (PCE) index. Traders are always concerned about the cost of money so any data point that suggests interest rate hikes are at, or near, an end is a buying opportunity. Next week will be a shortened trading week.  

The markets close at 1:00 on July 3 and are closed for the July 4 holiday in the United States. Volume may be light which may create more volatility. And that volatility may escalate when the June jobs report comes out on Friday, July 7.  

The second half is getting ready to start. And even though the market may be a little quieter, the MarketBeat staff will continue to follow the stocks and stories that are moving the market. Here are some of the most popular articles from this week.  

Articles by Jea Yu 

Electric vehicles (EVs) remain a sector that excites investors, but one they should approach with caution. This week, Jea Yu was writing about the Chinese EV maker, Nio Inc. NYSE: NIO. The Chinese government recently announced a package of tax breaks that will total $72.3 billion over the next four years. Yu analyzes what the subsidies may mean for NIO stock which is far off its all-time high of $66.99. 

Yu was also looking at the DevOps platform provider JFrog Ltd. NASDAQ: FROG. The company, which is known for its “Liquid Software” continues to see growing demand for its solutions which Yu notes will be drive the stock higher.  

And for investors with an appetite for speculative biotech stocks, Yu analyzed the positive phase two clinical results from MoonLake Immunotherapeutics AG NASDAQ: MLTX. The company is using antibody drug conjugates (ADCs) to treat inflammatory diseases. However, it’s still at least two years away from being profitable.  

Articles by Thomas Hughes 

Thomas Hughes was reminding investors why the period after a company’s earnings report is a time when analysts offer their opinion about a stock’s outlook. And Hughes wrote about two companies that analysts are bullish about. MongoDB, Inc. NASDAQ: MDB is emerging as an AI play and as Hughes notes a dozen analysts have initiated coverage on MDB stock in the past few months.  

Hughes also had a pick for income-oriented investors. Analysts' opinions on The Sherwin-Williams Company NYSE: SHW show that “better-than-expected" housing data means the worst may be over for the paint manufacturer.  

General Mills NYSE: GIS stock dropped after its earnings report and guidance. But Hughes explains why strong fundamentals put the stock in a buy zone for long-term investors.  

And Mullen Automotive, Inc. NASDAQ: MULN remains one of the most polarizing of penny stocks. But the company just continues to make news. This week Hughes explains why genuinely good news may still not be enough to prevent MULN stock from being delisted.  

Articles by Sam Quirke 

One of the biggest stories in the market this week came from Wedbush analyst Dan Ives who predicted the ongoing rally in Apple Inc. NASDAQ: AAPL still has a long way to go. That may be difficult for investors to believe, but Sam Quirke makes the case for why investors need to look at Apple as the best-in-class tech giant that it is.  

Analysts have been less than bullish about Alphabet, Inc. NASDAQ: GOOGL. The parent company of Google received two downgrades this week. But Quirke explains why any pullback may provide investors with a buying opportunity for one of the leaders in generative AI.  

Quirke was also ranking three of the most popular video game stocks. This has been one of the best-performing sectors in 2023, and Quirke explains why each of these stocks still have room to run.  

Articles by Chris Markoch 

For investors looking for a recovery in the beaten-down EV market, Lucid Group, inc. NASDAQ: LCID may be providing some hope. The stock is trending higher after two major news announcements that are helping build up the company’s cash position.  

Turning his attention to the overall economy, Markoch was looking at Korn Ferry NYSE: KFY. The employment outlook has been a continuing focus of debate for economists. And as Markoch writes Korn Ferry’s latest earnings report is one that can make a case for both bulls and bears.  

Articles by Kate Stalter  

Although there are a number of intriguing small-cap AI stocks, the large-cap stocks may provide the most benefit for many investors. Kate Stalter was writing about two such companies this week. Meta Platforms Inc. NASDAQ: META has been a rags-to-riches story in 2023. And a bullish outlook for earnings – fueled by AI-driven ad growth – is likely to lift the stock further. 

Then there’s Nvidia Corporation NASDAQ: NVDA. As Stalter writes, NVDA stock is under pressure from proposed new constraints on chip exports to China. Nvidia won’t be the only company affected, but as the leader in the AI-chip space, this will be a story for investors to watch. 

Turning her attention to commodities, Stalter wrote about the ongoing demand for copper and why that is likely to be a catalyst for Freeport-McMoRan NYSE: FCX which is the world’s largest publicly traded copper miner. Investors considering a position in FCX stock should note that the real growth isn’t expected until 2024.  

Articles by Ryan Hasson 

This week, Ryan Hasson reminded investors why investing in stocks with a high dividend yield can protect their portfolio from volatility and provide extra income that can be reinvested for future gains. And in this article, Hasson gives investors three high yield dividend stocks that are also providing a little growth.  

Hasson was also focusing on the recent sell-off in Advanced Micro Devices, Inc. NASDAQ: AMD. The stock is up 70% for the year and with the support of institutional investors, AMD stock may have further to run.  

And if you’re looking for a possible turnaround play in the second half of 2023, Hasson points you to Wayfair, Inc. NYSE: W. The online home furnishings company has suffered a brutal sell-off since peaking in 2021. But recent activity shows a bottom may have formed which is creating opportunities. 

Articles by Gabriel Osorio-Mazilli 

Investors who are comfortable with contrarian and possibly controversial stocks may want to consider Smith & Wesson Brands, Inc. NASDAQ: SWBI. That’s the opinion of Gabriel Osorio-Mazilli, who wrote about the stock after it gapped up following a strong earnings report. 

On a more cautious note, Osorio-Mazilli was looking at the case for Cal-Maine Foods, Inc. NASDAQ: CALM. The stock is under pressure after a couple of analyst downgrades. One reason for the skepticism may come from the company’s dividend which has a yield of 19.6%, which appears unsustainable. But Osorio-Mazilli takes a deep dive into the company’s fundamentals that suggest it could be a value play.  

And in the it might be so bad, it’s good category, Osorio-Mazilli was looking at the recent price movement in Rite-Aid, Inc. NYSE: RAD stock. The drugstore chain has been beleaguered over several years, but if it can stay afloat it may be a takeover target at some point.  

Articles by MarketBeat Staff 

With other beer stocks dominating the headlines, the MarketBeat staff was looking at The Boston Beer Company, Inc. NYSE: SAM. The stock has been trending lower amidst woes in its seltzer category. But institutions have been buying SAM stock which is getting analysts excited.   

Our team was also looking at United Natural Foods, Inc. NYSE: UNFI which has been a laggard in the grocery sector. However, this could be a case where the sell-off has been too steep and investors could have a favorable risk-reward dynamic.  

The MarketBeat team is bullish about the pet sector in general. One stock that investors may not have considered is that of Trupanion, Inc. NASDAQ: TRUP. However, this is one stock that should come with a warning label. The stock is down over 80% and after a dismal earnings report, there could be more pain ahead.