Soaring energy prices, the Fed’s FOMC minutes and Nvidia earnings could dominate the week ahead. Nvidia is set for a potentially explosive week with an earnings catalyst ahead. Home Depot faces looming headwinds as it prepares to report results that are likely to be disappointing.
U.S. stocks closed sharply lower on Friday, with the S&P 500 and Nasdaq retreating from their record highs as surging energy prices triggered inflation fears that also sent Treasury yields sharply higher.
Source: Investing.com
Despite the selloff, the major averages saw a rather subdued weekly performance, with the S&P 500 gaining 0.1%, while the Nasdaq Composite and Dow Jones Industrial Average fell 0.1% and 0.2%, respectively.
The coming week should be rather quiet for economic reports. The primary focus will be on the minutes of the Federal Reserve’s April FOMC meeting, the last meeting under Jerome Powell’s leadership.
Source: Investing.com
The odds that the Fed will raise interest rates by 25 basis points in December are approaching 50%, up from about 15% a week ago, according to Investing.com.
Elsewhere, in terms of earnings, ‘s results will be the key update of the week as the reporting season draws to a close. The coming week also offers an update on the retail sector, with Walmart, Lowe’s, Target and TJX all reporting quarterly results.
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. Don’t forget though that my calendar is just for the coming week, from Monday May 18 to Friday May 22.
Stocks to Buy: Nvidia
Nvidia is the definitive stock to buy this week as it prepares to deliver what is widely expected to be an explosive quarter accompanied by a significant increase in guidance. The AI pillar is expected to report a double beat, beating consensus estimates in terms of revenue and earnings per share, driven by growing demand for AI infrastructure.
Fiscal first quarter results are expected after the market closes Wednesday at 4:30 p.m. ET. A…
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