Developments in the Iran war, PPI data and the start of the first quarter earnings season will be in focus in the coming week. Netflix is preparing for a possible breakthrough as it approaches its first quarter results. Johnson & Johnson is likely facing a stumble with an expected profit decline in the spotlight.
U.S. stocks closed mostly lower on Friday, but the S&P 500 still managed to post its best week since November as traders kept an eye on the fragile two-week ceasefire between the United States and Iran.
Source: Investing.com
For the week, the benchmark S&P 500 jumped 3.6%, the 30-stock Dow Jones Industrial Average jumped 3%, while the tech-heavy Nasdaq Composite rose 4.7% and the small-cap Russell 2000 index gained 4%.
The coming week will once again focus on developments in the Middle East and oil prices, after weekend peace talks between the United States ended without a deal. In response, President Donald Trump announced Sunday that the U.S. Navy would begin blocking the entry and exit of all ships in the Strait of Hormuz.
Aside from the geopolitical aspects, reports on producer price inflation, existing home sales and initial jobless claims highlight a relatively light week for US economic data.
Source: Investing.com
Meanwhile, the first quarter earnings season kicks off with reports from major banks such as JPMorgan Chase, Bank of America, Citigroup, Wells Fargo, Goldman Sachs and Morgan Stanley. Besides banks, PepsiCo, Taiwan Semi and ASML are also among the companies that will report results next week.
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 April 13 to Friday April 17.
Stocks to Buy: Netflix
Netflix stands out as a solid pick in terms of upside potential this week. The streaming giant is expected to release its first-quarter financial results after the market close on Thursday, followed by a live video interview with management.
Market participants predict significant fluctuation in NFLX shares after print decline, options…
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