The Nasdaq is on track to break its three-month win streak
Stocks struggled for direction this week as trade tensions, weak economic data, and profit-taking in tech kept Wall Street on edge. Early in the week, consumer confidence plunged, sending investors flocking to bonds and pushing the 10-year Treasury yield to its lowest level since December. Meanwhile, trade war fears escalated after President Trump reaffirmed tariffs on Mexico and Canada and warned of potential levies on European Union goods.
All eyes were on Nvidia’s (NVDA) earnings, which easily beat expectations but failed to lift the broader tech sector, as investors took profits following its recent rally. The Nasdaq Composite (IXIC) marked its worst single-session loss since December, while jobless claims and a gross domestic product (GDP) reading painted a mixed picture of the U.S. economy. Traders unpacked inflation data that matched economists' expectations to close out February, but all three major indexes were pacing for monthly losses.
Earnings Hits and Misses
Despite initially rallying on strong earnings, NVDA reversed gains as investors took profits. PayPal (PYPL) stock popped after the company issued an upbeat outlook that signaledconfidence in its future growth. Home improvement retailers Lowe’s (LOW) and Home Depot (HD) beat earnings expectations, while Salesforce (CRM) shares fell after its disappointing outlook weighed. Domino’s Pizza (DPZ) stock also tumbled due to an earnings miss and soft consumer demand.
March’s Top Stocks, Short Seller Targets, and Sector Shifts
As March begins, Arista Networks (ANET) is emerging as one of the 25 best stocks to own, with analysts eyeing a breakout after its recent pullback. Meanwhile, Boeing (BA) remains under pressure, as historical trends show it's one of the 25 worst stocks to own next month. Netflix (NFLX) stock could be set for a rebound, with shares approaching a key bullish trendline.
Short sellers are circling AppLovin (APP), which was the top-performing stock of 2024, raising questions about whether its momentum can continue. Lastly, some investors are beginning to doubt the outlook for electric vehicle (EV) stocks as the sector faces headwinds.
March to Kicks Off With More Jobs Data
March kicks off next week with key economic data, including jobs reports, final inflation readings, and the Fed’s Beige Book. On the earnings front, retail and chip stocks will be in focus, with results from major names like Costco (COST), Macy’s (M), and Broadcom (AVGO) lined up. Keep tabs on these S&P 500 Index (SPX) support levels moving forward, and dig into how extended win streaks impact stock performance.