Data on US inflation, retail sales, US-Iran developments and the Trump-Xi summit could dominate the week ahead. Applied Materials stands out as the stock to buy, thanks to its strong positioning in the semiconductor equipment market amid growing demand for AI infrastructure. Alibaba appears to be one to sell as its upcoming results highlight ongoing challenges in a competitive and regulated environment.
U.S. stocks closed higher on Friday as the Nasdaq and Nasdaq posted new record highs on strong gains in Micron, Sandisk, Intel and other AI-related stocks, while a strong jobs report underscored the resilience of the labor market.
Source: Investing.com
All three major averages posted weekly gains. The Nasdaq jumped 4.5%, while the S&P 500 rose 2.3%. Both posted their sixth consecutive winning week, marking their longest winning streak since October 2024. The Dow Jones Industrial Average climbed 0.2% for the period.
Next week’s stock market rally will be driven by data on inflation and consumer spending, developments in the Iran war and a high-stakes meeting between the leaders of the United States and China.
President Donald Trump will travel to Beijing to meet with China’s Xi Jinping on May 14-15, marking the first visit by a U.S. leader to the Chinese capital in nearly a decade.
Meanwhile, most important on the economic calendar will be the US consumer price inflation report released on Tuesday, which is expected to show an annual increase in headline CPI of 3.7% year-on-year in April.
Source: Investing.com
CPI data will be accompanied by the release of the latest producer price figures on Wednesday, while retail sales data will be released on Thursday.
Elsewhere, earnings season calms down considerably over the coming week. Cisco Systems, Nebius, Oklo, Hims Hers Health, Circle Internet, Klarna, Barrick Mining and are notable reports.
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 May 11 to Friday May 11…
..
