The US-Iran peace deal, core PCE price index and more AI-related profits could dominate the week ahead. Marvell is the high-flying model, fueled by AI infrastructure momentum and ready to deliver another market-moving earnings release. Kohl’s, meanwhile, faces a challenging retail environment and risks disappointing investors with its upcoming results.
U.S. stocks closed higher on Friday, with major averages hitting new record highs, as investors welcomed signs of progress in negotiations to end the war in Iran and a strong corporate earnings season.
Source: Investing.com
The stock rose about 1% for the week, marking its eighth consecutive weekly gain and its longest weekly winning streak since December 2023. The stock jumped 2.1% and posted its third positive week in four, while the technology sector gained 0.8% and posted its seventh weekly advance in the last eight weeks.
The stock market’s recovery next week will be inspired by developments in negotiations between the United States and Iran to end the conflict in the Middle East. President Donald Trump said Saturday that the United States and Iran are close to an interim deal that would open the Strait of Hormuz.
Meanwhile, the economic calendar is muted, with markets closed Monday for Memorial Day. The Federal Reserve’s preferred inflation gauge, the Core PCE Price Index, is available. More economic data will be released next week, including a new estimate of first-quarter GDP and the latest consumer confidence figure.
Source: Investing.com
A 25 basis point rate hike by the Fed is now fully priced in this year, according to Investing.com.
Elsewhere, earnings season calms down considerably over the coming week. Dell, , HP, Salesforce, Costco Wholesale, and Best Buy are notable reports.
Source: Investing.com
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 May 25 to Friday May 29.
Stock to buy: Marvell
Marvell is shaping up to be a compelling buy ahead of its next earnings report, due Wednesday…
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