• Data on inflation, retail sales and the start of the fourth quarter earnings season will be in focus this week.
• Goldman Sachs is a buy with strong earnings prospects.
• Citigroup is on sale amid weak earnings and revenue prospects.
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U.S. stocks sold off Friday to close sharply lower after the latest jobs report was much better than expected, dampening bets on further rate cuts from the Federal Reserve this year.
All three major averages posted back-to-back weekly losses, with tech stocks down 1.9% and down 2.3%. Title 30 lost 1.9% over the week.
Source: Investing.com
The week ahead is expected to be another eventful one as investors continue to assess the outlook for the economy and interest rates.
Most important on the economic calendar will be the U.S. consumer price inflation report for December released on Wednesday, which could trigger further disruption if it comes in higher than expected.
The CPI data will be accompanied by the release of the latest producer price figures, which will help complete the inflation picture, as well as the December retail sales report.
Source: Investing.com
Elsewhere, fourth-quarter earnings season is set to kick off, with JPMorgan Chase (NYSE:), Bank of America (NYSE:), Wells Fargo (NYSE:), Citigroup (NYSE:), Goldman Sachs (NYSE:), Morgan Stanley (NYSE:), BlackRock (NYSE:), UnitedHealth (NYSE:) and Taiwan Semiconductor (NYSE:), some of the big names scheduled to release a report.
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. Don’t forget though that my calendar is just for the coming week, from Monday January 13 to Friday January 17.
Stocks to Buy: Goldman Sachs
I think Goldman Sachs shares will outperform this week, and the upcoming fourth quarter earnings report will likely beat expectations.
Goldman’s fourth-quarter financial results are due before the opening bell Wednesday at 7:30 a.m. ET and are expected to show robust growth. The investment…
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