MarketBeat Week in Review – 8/5 - 8/9

Key Points

• Low volume and low conviction have stocks looking for direction at the end of a volatile week.
• Next week, investors will get the latest reading on inflation and the start of retail earnings.  
• Here are some of our most popular articles from this week.  

A volatile week is ending with a whimper. All the major indices were bouncing between narrow gains and narrow losses on low volume and likely lower conviction. Investors are now awaiting the latest read on inflation which is due next week. Investors are hoping for confirmation that inflation is moving lower which would likely cement a rate cut in September. 

Next week will also be the start of retail earnings and Walmart Inc. NYSE: WMT is one of the first to report. The headline numbers won’t be as important as the company’s guidance which will provide a glimpse into the state of the broader economy.  

Summer is winding down and that means institutional investors will soon be increasing volume. That means that investors can expect more sector rotation as institutions look for the sectors of the market that will benefit from a rate cut. The MarketBeat team will continue to be on top of the stocks and stories that are moving the market. Here are some of our most popular articles from this week.  

Articles by Jea Yu 

If you’re looking for an under-the-radar stock in the emerging space economy, you’ll want to read what Jea Yu wrote about AST SpaceMobile Inc. NASDAQ: ASTS. The company’s mission is to create a global space-based cellular network that will help to remove the gaps left by traditional cellular coverage. This is a pre-revenue company, but it has partnerships in place with several major wireless carriers.  

Yu also explained the reason behind the sell-off in ARM Holdings plc NASDAQ: ARM after its second quarter earnings report. The stock sold off sharply as investors feared a greater chip sell-off, but the price action in ARM stock this week supports Yu’s thesis that this is a buyable dip. 

And in a year when restaurant stocks are getting pummeled, Yu explains why Texas Roadhouse Inc. NASDAQ: TXRH is an anomaly. The company is managing to deliver premium food to customers with real value that is showing up in growing same-store sales.  

Articles by Thomas Hughes 

Super Micro Computer Inc. NASDAQ: SMCI is a volatile stock, but its earnings report created enhanced volatility. One reason is that the company announced a 10-for-1 stock split, the first in the company’s history. That pushed the SMCI stock 10% higher before it tumbled over 15% the following day. Thomas Hughes writes about what the split means and why the market may be overreacting to the company’s report.  

Hughes also sees dip buying ahead for e.l.f. Beauty Inc. NYSE: ELF. Perhaps aligning with the broader market sell-off, shares of the cosmetic company dropped even after a beat and raise quarter. However, with analysts raising their price targets, Hughes explains why a rebound is expected soon.  

Even big oil stocks like Exxon Mobil Inc. NYSE: XOM haven’t been exempt from the broad market sell-off. But Hughes explains why, in 2024, investors shouldn’t be too quick to dismiss Exxon as “just an oil stock.” The company’s investments in carbon capture and lithium are two ways the company will drive value and return over time.  

Articles by Sam Quirke 

Now that all of the Magnificent 7 technology stocks have been reported, it’s a good time for traders to see which stocks may offer an opportunity. This week Sam Quirke made the case for Alphabet Inc. NASDAQ: GOOGL and Amazon.com Inc. NASDAQ: AMZN. In the case of Alphabet, the stock is down sharply in the last month and a stellar earnings report has done little to improve that sentiment. However, Quirke explains the technical signals that may point to a significant upside for the remainder of 2024.  

Amazon's stock price performance is partially due to a rare revenue miss in the company’s earnings. However, analysts are reaffirming their bullish sentiment for AMZN stock, and investors may be getting a rare buy-the-dip opportunity.  

Quirke was also picking through the disastrous earnings report issued by Intel Corporation NASDAQ: INTC to give investors any idea if there was hope for better days. The company has work to do to convince long-term investors. But traders may want to take advantage of oversold signals that could create an opportunity in a beaten-down stock.  

Articles by Chris Markoch 

After the brutal market sell-off on Monday, Palantir Technologies Inc. NYSE: PLTR gave investors a bright spot with a stellar earnings report. The stock is up more than 19% and Chris Markoch wrote why a $30 price target may be too low as sentiment is rising about the company’s possible inclusion in the S&P 500. 

Markoch was also writing about the price action in Owens Corning NYSE: OC after it reported earnings on August 7. Analysts expressed concern about the company’s cautious guidance. But the company’s fundamentals look strong and technical analysis shows that it’s usually a good decision to buy dips in OC stock.  

Articles by Ryan Hasson 

During times of market volatility, information and analysis can make all the difference. We love providing that at MarketBeat, and that’s what investors got from Ryan Hasson this week. Many investors heard the words “carry trade” for the first time this week. Hasson explains what the carry trade is and why it played a key role in the market sell-off.  

Speaking of that sell-off, investors know that it can create opportunities. In a separate article, Hasson summarized how specific sectors of the market were performing during this broad market pullback.  

One area where investors may be looking to invest is in defensive stocks. This week, Hasson had his eye on three defensive stocks that were posting gains while the rest of the market was selling off.   

Articles by Gabriel Osorio-Mazilli 

Another term investors have been hearing a lot of is sector rotation. That’s all well and good until you hear that Warren Buffett sold half of his stake in Apple Inc. NASDAQ: AAPL. As Gabriel Osorio-Mazilli explained this week, the stated reason for Buffett’s move may have more to do with tax policy than a rotation out of tech, but some of Oracle’s buys may suggest otherwise. 

Osorio-Mazilli was also writing about the recent crash in the price of Hims & Hers Health Inc. NYSE: HIMS stock. The stock is under pressure because sales of its weight loss products did not meet expectations. But Osorio-Mazilli explains why that may be meaningful for short-term traders. Investors have reasons to believe in the future outlook for HIMS stock. 

Osorio-Mazilli also explains why a similar setup appears to be shaping up for Airbnb Inc. NASDAQ: ABNB. The company’s stock is dropping after it issued cautious guidance for the coming quarters. However, Osorio-Mazilli explains that the company’s strong key performance indicators (KPIs) should give investors more than enough reason to stay long on ABNB stock.  

Articles by Leo Miller 

Weight loss drugs continue to rival artificial intelligence as one of the hottest sectors in 2024. This week Leo Miller analyzed two stocks that give investors distinct ways to play the sector. Novo Nordisk A/S NYSE: NVO stock went on a wild ride over concerns of slowing demand for their GLP-1 drugs. However, the stock recovered after Eli Lilly & Co. NYSE: LLY delivered earnings that showed strong demand. These companies are 1 and 1A in the GLP-1 market right now, but Miller explained why Amgen Inc. NASDAQ: AMGN is developing its own GLP-1 candidate, MariTide, that may differentiate it from the leaders.  

Miller was also analyzing the earnings report for Constellation Energy Co. NASDAQ: CEG. The company is one of the leading providers of nuclear energy in the United States and its report confirmed that data center demand is building the nuclear narrative.