MarketBeat Week in Review – 7/29 - 8/2

Key Points

• The market sell-off is gaining steam, and investors wonder if we’re closer to the beginning or the end.
• An answer may come from the Federal Reserve, which is now expected to cut interest rates by up to 50 basis points at its meeting in September.
• Here are some of our most popular articles from this week.  

Is this sell-off closer to the beginning or closer to the end? That’s what many investors may be feeling after a week that saw a sharp, tech-led sell-off. However, after the July jobs report, the sell-off gained steam. In mid-day trading, the Dow had its worst day in a year. But it wasn't just the Dow. All the major indexes were down at least 1%, with the NASDAQ down over 3%. 

Technical indicators show that the market could move lower for the rest of the summer. But help may be coming from the Federal Reserve. Expectations are rising that the Fed will cut not just in September but by 50 basis points.  

However, investors need to tread carefully because initial rate cuts historically send equity prices lower. The MarketBeat team is here to help you navigate that volatility. Here are some of our most popular articles from this week.    

Articles by Jea Yu 

Gold has been a solid investment this year, but it takes some time for gold mining stocks to catch up. However, Jea Yu analyzes why Barrick Gold Co. (NYSE: GOLD) appears to be on the verge of a breakout as the company projects its production costs will fall as production rises in the second half of 2024.  

If the market is on the verge of a rotation, consumer staples may be a significant beneficiary. If so, Yu explains why investors may want to look closely at Kimberly-Clark Co. NYSE: KMB. The company’s stock dipped after a slight revenue miss, but the company raised its guidance for the remainder of the year, which means the dip could set the stage for a new record high.  

Broadcom Inc. NASDAQ: AVGO has been a strong performer after announcing its 16:1 stock split. But Yu writes why there’s more to like about Broadcom’s stock than a more attractive price and gives investors four reasons to believe AVGO stock may run higher after the stock split.  

Articles by Thomas Hughes 

You’re hearing a lot of talk about sector rotation. One sign of that is coming from the Russell 2000 index which is up 7.4% in the past month. This week, Thomas Hughes highlighted three top Russell 2000 stocks that are leading this run-up and still have room to move higher.  

Hughes gave investors another small-cap pick by analyzing the outlook for Joby Aviation Inc. NYSE: JOBY, a leader in the emerging electric vertical take-off and landing (eVTOL) vehicle space. Analysts are bidding JOBY stock higher as the company is showing solid financial support from several key partners.  

However, Hughes also believes that you may not want to abandon big tech completely, particularly if you look at the recent earnings report from Meta Platforms Inc. NASDAQ: META. The company is showing its ability to monetize AI, and analysts are forecasting new, all-time highs for META stock. 

Articles by Sam Quirke 

Micron Technology Inc. NASDAQ: MU may not be one of the Magnificent Seven stocks, but it was having a magnificent run until recently. MU stock is down over 23% in the last month, but Sam Quirke explains why industry trends, in addition to fundamental and technical metrics, are reasons investors should consider buying this dip in MU stock.  

If you’re looking for a stock in an emerging sector, Quirke explains why you may want to look into Block Inc. NYSE: SQ. The company is one of the key players among blockchain stocks, and, as Quirke notes, SQ stock appears to be forming a bottom as analysts note the company’s emerging revenue-generating products.  

Articles by Chris Markoch 

Many investors look for technical signals to determine when to start or add to a stock position. One indicator is finding stocks trading near 52-week lows. This week, Chris Markoch wrote about three stocks that are presenting buying opportunities even as they trade at or near their 52-week lows. 

Markoch also wrote about the blowout earnings report from Merck & Co. Inc. NYSE: MRK. The company delivered a double beat as Keytruda sales remain strong and investors are becoming enthusiastic about the company’s efforts to bring new drugs to market. 

The end of this week brought earnings reports from many of the big oil companies. Chevron Corp. NYSE: CVX stock is sinking after an earnings miss. Markoch analyzes the report and explains why CVX stock is still a solid long-term opportunity for investors.  

Articles by Ryan Hasson 

Many investors may be concerned over the recent sell-off in chip stocks. However, as Ryan Hasson points out, investors shouldn’t let short-term volatility cause them to ignore the long-term growth prospects that still exist for this sector, including the three semiconductor stocks that he analyzes for their likelihood of future growth. 

As the Health Care Select SPDR Fund NYSEARCA: XLV shows, the healthcare sector is benefiting from sector rotation, and Hasson analyzes two healthcare stocks that look like breakout performers during this period of sector rotation.  

Finance stocks are also on the rise as investors may be seeking safety in the midst of volatility. Hasson highlights three financial stocks that stand out after a strong earnings season.  

Articles by Gabriel Osorio-Mazilli 

This week, Gabriel Osorio-Mazilli explained to investors why the pending normalization of the yield curve is a bullish signal for energy stocks, which have traditionally performed well in past instances when the economy went through this cycle.  

Osorio-Mazilli is also studying the small-cap market and gave investors his own list of three small-cap stocks that are likely to benefit as investor money begins to flow into them.  

And with many restaurant stocks under pressure as the consumer continues to show weakness, Osorio-Mazilli analyzed the bullish earnings report from Shake Shack Inc. NYSE: SHAK, which is seeing its share price move 17% higher after a strong earnings report.  

Articles by Leo Miller 

This week, Leo Miller showed investors why it’s a good idea to have some cash on the sidelines before earnings season. The stocks that beat on earnings can move higher, but those that don’t are frequently punished. Among the winners this week, Miller highlighted the positive earnings report from the Bristol-Myers Squibb Co. NYSE: BMY, which investors are still rewarding even with existing concerns over future patent expirations. The same was true with Mastercard Inc. NYSE: MA, which delivered a double beat on earnings that even its rival Visa Inc. NYSE: V couldn’t match. 

On the other hand, Miller wrote about Procter & Gamble Co. NYSE: PG, which shows that there are always outliers. The company beat on earnings but missed on revenue, and PG stock is falling as a result. However, Miller explains why the sell-off may be overdone, which may give investors a compelling buying opportunity.