CPI inflation, retail sales, producer prices, and retailer earnings will be in focus this week.
Walmart is a buy with strong earnings, guidance beat on deck.
Deere is a sell with disappointing profit growth, outlook expected.
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U.S. stocks ticked up on Friday to end a volatile week, with the major indices managing to recover most of their losses from the violent market rout earlier in the week. After a steep 3% drop on Monday, the broader market made its way back to an almost flat performance for the week.
Source: Investing.com
The benchmark and the tech-heavy lost 0.1% and 0.2% respectively, while the blue-chip shed 0.6%.
The week ahead is expected to be another eventful one as investors continue to gauge the outlook for the economy and interest rates. As of Sunday morning, investors see a of the Fed cutting rates by 50 basis points at its September meeting, and a 49% chance of a quarter-percentage point rate cut.
On the economic calendar, most important will be Wednesday’s U.S. consumer price inflation report for July, which is forecast to show headline annual CPI rising 3.0% year-over-year.
Source: Investing.com
The CPI data will be accompanied by the release of the latest retail sales figures as well as a report on producer prices, will help fill out the inflation picture.
Meanwhile, the reporting season’s last big week sees earnings roll in from notable retailers such as Walmart (NYSE:), and Home Depot (NYSE:). Other notable reporters include Cisco (NASDAQ:), Applied Materials (NASDAQ:), Deere (NYSE:), and Alibaba (NYSE:).
Regardless of which direction the market goes, below I highlight one stock likely to be in demand and another which could see fresh downside. Remember though, my timeframe is just for the week ahead, Monday, August 12 – Friday, August 16.
Stock to Buy: Walmart
I expect a strong performance from Walmart this week, with shares likely to break out to a new record high, as the discount retailer will likely deliver another quarter of solid top-and bottom-line…
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