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MarketBeat: Week in Review 8/29 – 9/2

The August jobs report had a Goldilocks feel to it and markets are responding accordingly. In early trading, stocks are not too excited, but pointing towards, perhaps, a green ending to the week. However, the trend is still bearish. Higher interest rates and sticky inflation will likely be with consumers for some time to come. In summary, there’s still a lot of uncertainty and – say it with me – the markets hate uncertainty. Next week will be a shortened trading week as the markets are closed for the Labor Day holiday. We hope you’re able to recharge and have time to catch up on some of the market news. With that in mind, here are some of the stocks and stories our analysts were focusing on this week.

Articles by Jea Yu

Jea Yu was looking at companies known as deflation enablers. These are companies that help other businesses streamline their operations during uncertain times. During times like these, stocks in these companies can rise as demand for their services increase. Yu gives investors three deflation enablers to consider during this recession. Entertainment stocks have been among the best investments as consumers continue to pay for experiences. With that in mind, Yu suggests investors take a close look at Live Nation Entertainment (NYSE:LYV). The stock has some work to do before getting back to its highs, but it’s getting a boost as more artists turn to live performances to combat the streaming model. Yu was also looking at Macy’s (NYSE:M) and reminding investors of a key advantage that adds to the retailer’s value.  

Articles by Thomas Hughes

We continue to give investors insight into what’s happening in the broader market. As part of our explainer series, Thomas Hughes takes investors to chart school to explain why the S&P 500 just flashed a bearish signal and some underlying reasons why that signal may get confirmed in coming months. As earnings season wraps up, Hughes focuses on the retail sector and gives readers his winners and losers from this past season. And for income investors, Hughes suggests taking comfort in Campbell’s Soup (NYSE:CPB). Although the stock is down after the earnings report, Hughes suggests the dip may be overstated and that the company offers value in what will continue to be a risk-off environment.  

Articles by Sam Quirke

Sam Quirke reminds investors with a long time horizon that now may be the time to consider some stocks that otherwise look untouchable. One of those stocks is Best Buy (NYSE:BBY).  As Quirke points out, shares are down 50% but he outlines some management comments from the earnings report that suggest the stock may have a brighter future. Of course, another strategy at times like this is to invest in  the rock-solid companies. And Lululemon (NASDAQ:LULU) certainly fits that description. LULU stock is up nearly 10% the day after the company delivered yet another in a series of strong earnings reports. It’s welcome news for the market and for shareholders of the stock.

Articles by Chris Markoch

Internal combustion vehicles aren’t getting a lot of love these days. However, as Chris Markoch writes that may be the exact reason why investors should consider Advance Auto Parts (NYSE:AAP). The push towards electric vehicles will crimp supply for new and used vehicles which will likely mean more consumers looking to keep the car they have running longer. Markoch also wrote about Medtronic (NYSE:MDT). The medical device maker’s stock has had a choppy recovery that mirrors the choppiness in the sector. However, Markoch gives investor three reasons why MDT stock may be a solid recession play. And while a recession is usually a signal to stay away from materials stocks, Markoch gives investors a reason to consider three materials stocks that stand out because they supply materials needed in the new economy.

Articles by Parth Pala

This week, Parth Pala reminded investors that the market is constantly changing. A sector that is hot one quarter or two can suddenly become out of favor. And that certainly fits the current situation with Nvidia (NASDAQ:NVDA). This was among the darling stocks of late 2021 into 2022. But as Pala points out, the recent chip ban is just the latest headwind in what is becoming a bearish market for chip makers. A similar situation is in play with Barrick Gold (NYSE:GOLD). The miner was drawing interest because of the rising price of copper. But macroeconomic conditions are creating a mixed outlook for a stock that, as Pala notes, has a history of underperformance. And the August market rally renewed interest in some of the meme stocks including Bed Bath & Beyond (NYSE:BBBY) which soared to over $26 a share. It hasn’t held those gains, but Pala observes that the stock is not without hope for investors who have an appetite for risk.

Articles by Kate Stalter

Many investors have been staying away from Chinese stocks for some time and not without reason. When a stock is in danger of being delisted from an exchange it’s rarely good news. However, as Kate Statler writes, Alibaba (NYSE:BABA) and Baidu (NASDAQ:BIDU) have reached agreement with U.S. regulators which may give investors a reason to buy into the stocks. Stalter was also reminding investors that past performance, or nostalgia for such, does not always make a stock a good buy. In the case of Micron Technology (NASDAQ:MU) investors won’t find a company that’s much better at beating earnings expectations. But the company’s revenue growth appears to be slowing at a time when the bullish trend for semiconductor stocks is weakening. And in the case of Alcoa (NYSE:AA), a former bellwether Dow stock, Stalter cautions that the recent surge in aluminum demand may not be enough to buck what has been a bearish trend.

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