Tensions in the Middle East, US inflation data, Oracle and Adobe results will be in focus in the coming week. Adobe is well-positioned to exceed low expectations and provide the confident outlook needed to regain its bullish momentum. Lennar appears poised for a potential decline as weakness in the housing market impacts its own bottom line.
U.S. stocks fell Friday and the VIX rose as oil prices soared amid the ongoing U.S.-Iran war and traders reacted to a poor monthly jobs report.
Source: Investing.com
All major indexes posted sharp weekly declines, with the 30-stock Dow Jones Industrial Average falling 3%, the benchmark S&P 500 down 2%, while the tech-heavy Nasdaq Composite lost 1.2% and the small-cap Russell 2000 plunged 4%.
The coming week will once again be marked by developments in the Middle East and oil prices, with the conflict showing no signs of abating on Sunday morning.
Aside from geopolitical concerns, a new inflation report will arrive in the coming week. The February consumer price index, released on Wednesday, is expected to show a moderate 0.2% increase in underlying prices. The core PCE price index, which is the Fed’s preferred inflation gauge, will also be closely watched on Friday.
Source: Investing.com
Elsewhere, software earnings and guidance names Oracle and could update the state of investors’ AI bubble fears. A late-season surge of retailers, including Dollar General, Kohl’s and Ulta Beauty, is also being reported as the fourth-quarter season comes to a close.
Regardless of which direction the market is heading, below I highlight one stock likely to be in demand and one that could see further decline. Remember though that my deadline is just for the coming week, from Monday March 9 to March 13.
Stocks to Buy: Adobe
Adobe approaches its earnings report with moderate expectations after a period of weakness in the software sector. This sets the stage for a classic “better than expected” rally, making it the stock to buy this week.
Analyst sentiment was particularly positive ahead of the release, with earnings estimates revised upwards 23 times, compared to just…
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