MarketBeat Week in Review – 7/8 - 7/12

Key Points

• The S&P 500 hit a new record high fueled by growing hopes of a September rate cut.  
• Next week will be the first full week of the new earnings calendar, and some big names are set to report.  
• Here are some of our most popular articles from this week.  

Stocks took investors on quite a ride this week, with the S&P 500 hitting a new record high, then falling back on Thursday before rallying to end the week. The driving force continues to be the hope that the Federal Reserve will cut interest rates starting in September.  

The problem is that the latest readings on inflation are sending mixed messages. A cooler-than-expected CPI number created a sell-the-news event. However, a move higher in the Russell 2000 is fueling optimism that the long-awaited sector rotation is underway. A slightly hotter reading on the producer price index (PPI) suggests that inflation will be around longer than we’d like.  

Next week will bring the first full weeks of earnings reports. Investors will get a preview of several sectors as names like D.R. Horton Inc. NYSE: DHI, Johnson & Johnson NYSE: JNJ, Kinder Morgan Inc. NYSE: KMI, Domino’s Pizza Inc. NYSE: DPZ and Netflix NASDAQ: NFLX all report. For many of these companies, investors will pay close attention to guidance. And so will the MarketBeat team of analysts. Here are some of our most popular articles from this week.     

Articles by Jea Yu 

This week, as part of our Options Trading series, Jea Yu helped traders understand the mechanics of a diagonal debit spread, which is referred to as a poor man’s covered call. You’ll learn what it is, when you may want to use it, and examples of how it works. 

Yu also wrote about the price action in Baidu Inc. NASDAQ: BIDU stock. Shares of the company commonly referred to as “the Google of China” recently bounced off 52-week lows. Yu explains the opportunity and at what price investors may want to get involved. 

Weight loss drugs continue to be among the best-performing stocks in 2024. One of these companies Eli Lilly & Co. NYSE: LLY is starting to provide users with evidence that the semaglutide active ingredient in its GLP-1 drugs is superior to the competition. If that continues, there may be a much higher upside for LLY stock.  

Articles by Thomas Hughes 

2024 has been the year of the stock split. While this action doesn’t change the fundamental value of a company, stocks that split have a history of moving higher in the months after the split. With that in mind, Thomas Hughes wrote about three stocks that, for different reasons, could be the next to split their stock. 

Hughes also checked in on PepsiCo Inc. NASDAQ: PEP, one of the first companies to report quarterly earnings. The company is a forerunner among consumer staples stocks. It maintained guidance at what Hughes believes may be a cautious level, making this an opportunity for investors to buy the dip on this dividend aristocrat.   

And if a sector rotation is truly underway, one area risk-tolerant investors may want to watch is the biopharmaceutical space. Hughes writes about three pharmaceutical stocks that have upcoming catalysts for higher prices.  

Articles by Sam Quirke 

You may be reading this on your smartphone, which may be putting you in touch (literally) with Corning Inc. NYSE: GLW, a leading manufacturer of glass substrates, liquid crystal displays, and organic light-emitting diodes used in our favorite electronics, including flat-panel TVs and smartphones. GLW stock is up nearly 50% in 2024, and Sam Quirke explains why the stock may have room to run.  

Quirke was also looking at the recent dip in Domino’s Pizza stock. The company continues to show strong fundamentals, but the stock has pulled back after reaching a record high earlier this year. Domino’s reports earnings next week; good numbers and guidance could send DPZ stock higher. This may be the time to buy the dip.  

Articles by Chris Markoch 

Another week and more news to stir the pot on Palantir Technologies, Inc. NYSE: PLTR. This week, Chris Markoch explains why the company’s recently announced partnership with Oracle Corp. NYSE: ORCL is the latest, but not the only, catalyst that could continue to give the bulls the upper hand even with PLTR stock up 68% in 2024.  

Articles by Ryan Hasson 

Bank and finance stocks traditionally kick off earnings season. Investors are paying particular attention to this sector as lower interest rates may send prices much higher. This week, Ryan Hasson looked at three financial stocks that investors may want to watch closely for signs of a breakout.  

Hasson also examined the biopharmaceutical sector. In this case, he analyzed the reason behind the 400% run-up in the Soligenix Inc. NASDAQ: SNGX stock price. The company, which develops and commercializes products to treat rare diseases, gave investors an interim update that showed promising results for its HyBryte treatment for early-stage cutaneous T-cell lymphoma. 

Articles by Gabriel Osorio-Mazilli 

Buying and holding NVIDIA Corp. (NASDAQ; NVDA) isn’t a bad investment strategy, but if you’re looking for chip stocks that may have more short-term upside, you’ll want to read this article from Gabriel Osorio-Mazilli to get two semiconductor stocks with lower valuations than NVIDIA and plenty of upside. 

Oil prices have been holding above $80 a barrel, and if the Federal Reserve cuts rates, they could move much higher. This week, Osorio-Mazilli analyzed three of the top oil stocks investors should consider for oil’s seemingly inevitable move higher. 

Osorio-Mazilli reminds investors that there’s often no substitute for simplicity. That means buying quality companies when they’re trading at massive discounts. That's the case with the stock of these three highly profitable companies, which may be ready to shoot higher after they report earnings.  

Articles by Leo Miller 

The Boeing Co. NYSE: BA has been making news for all the wrong reasons this year. However, Leo Miller explains that investors who may be partial to a “so bad it’s good” narrative just got served some red meat. The beleaguered company is acquiring Spirit AeroSystems Holdings Inc. NYSE: SPR in an effort to dampen concerns about quality control at Boeing.  

And to close this week, many people love roller coasters when they're not part of their stock portfolios. You may be able to get a thrill from Six Flags Entertainment NYSE: SIX now that it has finalized its merger with Cedar Fair L.P. NYSE: FUN, which creates one of the largest theme park operators in North America.