Q2 STOCKS TO BUY

Stocks Enjoy Reprieve During Holiday-Shortened Week

The Federal Reserve noted a 50- or 75-basis point hike may be coming

Digital Content Manager
Jul 8, 2022 at 2:52 PM
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Markets began the holiday-shortened week on a mixed note, as investors kept a wary eye on the 10-year and 2-year Treasury yields, which made brief inversions in the early afternoon on Tuesday. On Wednesday, stocks closed marginally higher, as Wall Street kept a close watch on rising Big Tech and the Federal Reserve’s note to expect a 50- or 75-basis point hike at its next meeting. By Thursday, the S&P 500 Index (SPX) logged its longest daily win streak since March, while the Dow Jones Industrial Average (DJI) and Nasdaq Composite (IXIC) registered notable gains of their own. As of this writing, the three major indexes are eyeing more daily wins, with weekly closes also in the black.

Top Big Tech Headlines

Tech stocks were drawing attention after Independence Day. HP (HPQ) returned from the holiday weekend to log a fifth-straight daily loss, after Evercore ISI downgraded the security to "in line" from "outperform," with a price-target cut to $36. Electric vehicle (EV) giant Tesla (TSLA) also received a bear note after issuing disappointing delivery data. 

In other news, Fastly's (FSLY) recent rally could soon be cut short, according to this historically bearish trendline. What's more, the Washington Post reported TSLA CEO Elon Musk's buyout of social media name Twitter (TWTR) is in "serious jeopardy," prompting a price-target cut from Wedbush.

Inflation Data in Focus as Q3 Kicks Into High Gear

Next week will bring a slew of economic indicators for investors to unpack, with a major focus on key inflation data. Specifically, June's consumer price index (CPI) and inflation expectations are due out. It will also be a big earnings week for the financial sector, with some other names set to report as well, including Citigroup (C), Conagra (CAG), Delta Air Lines (DAL), JPMorgan Chase (JPM), Morgan Stanley (MS), PepsiCo (PEP), UnitedHealth (UNH), and Wells Fargo (WFC). Before then, find out how to avoid getting caught on the wrong side of the tape during the second half of 2022.

 
 

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